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April 1, 2024
4 min

How to Invest in Real Estate to Obtain a Spain Golden Visa

Kenley Henderson - Golden Visa Expert

Spain Golden Visa program has become a popular real estate investment option for wealthy individuals seeking residency rights. The minimum requirement for this option is €500,000.

We'll further explore who are the major applicants for these golden visas and what drives their high demand among affluent investors. The benefits of a Spanish Golden Visa go beyond just residency, offering to live and working rights and potential pathways towards obtaining Spanish citizenship.

The application process can seem daunting, but we aim to simplify it by detailing each step in applying for a Spanish golden visa. We also shed light on the expected timeframe until approval.

How to Invest in Real Estate to Obtain a Spain Golden Visa

Why Foreigners Prefer Real Estate Option To Obtain Spain Golden Visa

Purchasing real estate is the most popular option the Spain residence-by-investment program offers. To apply, the investor must buy immovable assets for at least €500,000 by purchasing one or more properties in any region.

The Spanish Golden Visa program attracts investors from around the globe. The demand for the Spanish Golden Visa from affluent individuals is mainly due to a combination of aspects, such as political instability in their native countries and an aspiration for a better lifestyle that Spain offers with its cultural heritage, pleasant climate, and the high-quality healthcare system.

Reasons behind high demand among wealthy individuals:

  • Economic security: investing in stable economies like Spain provides a safety net against potential financial downturns back home.

  • Lifestyle upgrade: with beautiful landscapes, world-class cities, and an enviable lifestyle, Spain is highly desirable for many foreigners.

  • Mobility: a Spanish residency permit allows visa-free travel within Europe’s Schengen Area, which includes 27 European countries, offering immense convenience when travelling across borders.

Investing in real estate is the cheapest option in other ways to obtain a Spain residence permit. Investments in stocks, bonds, shares in a fund, or deposits will need €1 million or more in the country’s economy.

Spain Golden Visa Program: Overview

Investing in real estate is one of the best ways to obtain a Spanish residence permit. You must invest at least €500,000 in the Spanish real estate market for a golden visa.

After 5 years of owning, аn investor can sell an investment property and return the investments.

Key features of a Spain residence permit by investment in real estate:

  • no residency obligation: you don’t have to live in Spain to hold a golden visa;

  • inclusion of family members: you can include your spouse and children;

  • the application is considered quickly: it takes about 5 months;

  • visa-free entry and travel in the Schengen countries;

  • the right to work or conduct business in Spain;

  • opportunity to open accounts in Spanish banks.

Spain Golden Visa requirements for the main applicant:

  • age over 18 years old;

  • a legal income;

  • money for investment is earned outside of Spain;

  • no criminal records;

  • no debts in Spain;

  • medical insurance.

Along with an investor, other family members can also be added to the application and get Spain Golden Visas. The spouse, unmarried dependent children and dependent parents can get Spain’s residence permits under the Golden Visa program with the investor.

Spain Golden Visa through real estate purchase

Applicants can purchase either residential or commercial real estate under the Spain residence-by-investment program

How To Choose Investment Property in Spain

In the economic slump brought on by the Covid‑19, the real estate market had a sharp cooling off after five years of good expansion between 2015 and 2021. However, as yields increase, Spain is a feasible investment location.

Prices have still not returned to their pre-crisis levels: between 2007 and 2015, they fell by 40%, and since then, they have increased by 2–4% annually.

Many homes are being constructed with investors in mind. Real estate for resorts, which typically belongs to the wealthy, is in high demand. The Balearic Islands, Costa Brava, Costa Dorada, Costa Blanca, Alicante, Benidorm, and other coastal cities have villas for sale.

Expenses related to purchasing properties include notary fees, land registry fees, and real estate agent commissions. Also, investors pay taxes at different rates depending on the real estate type.

Transfer Tax and Associated Fees Under Real Estate Option

For residential properties in new buildings

10% of the transaction amount is VAT, and 1.5% is stamp duty

For residential resale properties

6 to 10% of the cadastral property value

For commercial premises

Up to 25% of the transaction amount

Required Documents for the Spain Golden Visa

To apply for the Spain Golden Visa program, you need to prepare several essential documents:

  1. A completed application form is available from official government websites.

  2. Your original passport, along with photocopies of all pages.

  3. Certified copies of your birth certificate and marriage certificate, if applicable.

  4. Evidence showing proof of investment, such as property deeds or bank statements confirming funds transfer into a Spanish account.

  5. A health insurance policy covering full medical coverage in Spain issued by an authorised insurer recognised in Europe.

All these documents should be translated into Spanish by an official translator and notarised before submission. Please note that each record has a specified expiry period, so ensure they are still valid when submitting them.

Application Process of Getting Spain Golden Visa by Real Estate Investment

1

1 to 3 months

Buying real estate

The investor is assisted in finding a suitable property by real estate experts. The investor can choose a home in person by travelling to Spain or remotely using photo and video reports from the site.

A lawyer represents the investor in Spain. Therefore, signing a power of attorney is the first step. It is sendable to Spain after being remotely signed, certified, and apostilled.

2

1 month

Getting the required documents and application

It means collecting, verifying, translating, and notarising the required documentation discussed above. Once everything is ready, submit your application online or in person at your local Spanish embassy or consulate. Applications are usually processed within 20 working days but may take longer, depending on the volume of submissions and time of year.

3

30 days

Obtaining residence permit cards

The investor collects residence permit cards personally in Spain. The investor and their family members are not obligated to reside in Spain after obtaining residency by investment. The investor must visit the country only to renew the residence permit.

4

After 3 years, then after 5 years

Renewal of the residence permit

The first Spain residence permit card is valid for three years. After its expiration, the investor can extend the status for another five years. The renewal procedure takes place in Spain.

Additional Rights With Spanish Golden Visa

The Spanish Golden Visa program isn’t just about investing in real estate. The Spanish Golden Visa program can provide immense advantages to those outside the EU and their families, potentially transforming lives.

Living and working rights. The most immediate benefit of a golden visa is the right to live and work in Spain. Investors can relocate their businesses or start new ventures without restrictions. They can reside in any part of Spain, enjoying its varied culture, storied past, exquisite gastronomy and appealing way of life.

Investors can take advantage of Spain’s world-class public healthcare and educational services without limitation.

Pathway to Spanish citizenship. A golden visa also paves the way towards acquiring Spanish citizenship. Holders become eligible for permanent residency after maintaining legal residence status for two years without leaving Spain for more than six months each year. Following ten years of legal residence status, they may apply for citizenship.

However, it’s important to note that dual nationality is only recognized in certain Latin American countries, including Andorra, the Philippines, Equatorial Guinea and Portugal.

Conclusion

Investing in Spanish real estate grants residency in the country for investors and immediate relatives.

The application process involves submitting required documents thoroughly reviewed by immigration authorities before granting residency under the golden visa scheme.

It takes between 3 to 5 months on average to get approved, and while it allows access throughout Europe without additional visas, being granted a golden visa doesn’t automatically make one eligible for citizenship in Spain.

Frequently Asked Questions

  • How Much To Invest to Get a Spanish Golden Visa?

    The key investment requirement is that applicants purchase one or more properties for a combined price of €500,000 and maintain ownership of the property for at least five years. However, The house can be rented out during this time and sold once the five years have passed.

  • What Property Purchase To Obtain a Spain Residence Permit?

    Applicants can purchase residential or commercial real estate under the Spain residence permit by investment program. Both the primary market and the secondary market real estate purchases are permitted under the scheme.

  • Which Other Types of Investment Can Be Made Under the Spain Residence Permit Program?

    A Spain residence permit can be obtained using five permitted investment options. In addition to buying real estate, applicants can make the following investments:

    1. Deposit €1 million in a Spanish bank account.

    2. Buy shares of Spanish companies for €1 million.

    3. Launch a business project in Spain and invest €1 million.

    4. Buy government bonds for €2 million.

  • Is Real Estate Profitable in Spain?

    Real estate can be profitable in Spain, but as with any investment, success depends on various factors such as location, market conditions, economic factors, and individual circumstances.

  • Where To Invest in Real Estate in Spain?

    Spain offers several attractive locations for real estate investment. Here are some popular areas to consider:

    • Barcelona;

    • Madrid;

    • Valencia;

    • Costa del Sol;

    • Balearic Islands;

    • Canary Islands;

    • Bilbao.

    When investing in real estate, it is important to conduct thorough research, consider local market conditions, and seek professional advice from real estate agents or consultants who have expertise in the specific area you are interested in.