Does buying property in Spain get you residency? When you buy a house in Spain for 500,000€ or more, you will be granted automatic residency. This can be any form of property, including a home, a business property, land, or a combination of assets. The golden visa does not need you to spend 183 days a year in Spain. You can get more details Spain residency by investment here.
The Golden Visa for Spain is a resident visa granted to a non-EU national who plans to invest significantly in the Spanish economy. The visa grants the bearer and their family members residence in Spain as well as visa-free travel across the Schengen Zone. Most Golden Visas to Spain are awarded to people who buy real estate. They are, however, also accessible to businesspeople who invest in a Spanish firm, which is why they are also known as Spain Investor Visas. The Golden Visa for Spain is neither a visa nor a citizenship programme. Those who invest in Spain are eligible for resident permits under the scheme. It is not intended to be a scheme for granting citizenship to non-citizens.
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Can you get residency in Spain if you buy property?
The visa programme in Spain was launched in 2013 to stimulate foreign investment in order to enhance economic growth. Investors and their families who spend at least €500,000 in Spain are provided with a simple and rapid route to get a Spanish residence visa under the scheme. For candidates from the Philippines and (most) Spanish-speaking Latin American nations, Spain provides a fast track to citizenship.
Investors can seek permanent residency after five years of residing in Spain. After 10 years, you can apply for a Spanish citizenship (to qualify, applicants must have resided in the country for at least 6 months every year). The investment is no longer necessary after candidates acquire either permanent residency or citizenship. The Spanish visa application process is well-known for its efficiency and clarity.
Its primary advantages are its quick approval period (within 60 days) and family housing layouts. Your spouse and minor children are guaranteed residence permits. Other family members can also gain residence if paperwork proving they are your legal dependents are produced.
The Benefits of a Schengen Zone Resident Permit
Residents in the Schengen zone have the following advantages:
- Travel without a visa. You can travel freely across the Schengen region.
- European Union rights You are free to live, work, and study in your home nation.
- In times of economic or political turmoil, a safe haven.
The Schengen zone is made up of 26 countries:
- Austrian Republic
- Belgium
- Finland
- Estonia
- France
- Greece
- Denmark
- Germany
- Latvia
- Hungary
- Liechtenstein
- Italy
- Iceland
- Netherlands
- Norway
- Malta
- Poland
- The Czech Republic
- Lithuania
- Luxembourg
- Slovakia
- Portugal
- Spain
- Slovenia
- Switzerland
- Sweden
While not members of the European Union (“EU”), Iceland, Norway, Switzerland, and Liechtenstein are Schengen nations. As a result, a Schengen resident can freely travel to these countries as well.
Four additional nations have sought to join the Schengen area. Andorra, Bulgaria, Romania, and Croatia are among them. Passport constraints remain in force for travel to these nations until their application procedure is completed.
Despite being EU members, Ireland and Cyprus are not included in the Schengen zone. The United Kingdom was never a member of Schengen and just quit the EU.
Suggestion
People frequently seek our counsel. Our response is simple: Portugal is the best place to receive a European passport and an efficient tax solution. We propose Spain as a place to live or invest if you wish to buy a home.
We feel Spain has the biggest economic potential in comparison, owing to its larger population and stronger infrastructure. Within Spain, we choose Valencia and the surrounding region. Valencia is Spain’s third-largest city and is quickly becoming a popular tourist destination. It boasts a historic city centre, a fantastically huge (car-free) city park, a vast beach, several museums, and some spectacular modern buildings.
Denia, Javea, and Calpe are among the towns located south of Valencia. They are part of the Costa Blanca coastline region and are prospective high-end tourism sites. Our favourites are Javea and the adjacent Moraira. Denia and Javea both have excellent international schools for students of all ages. This region is also well-connected to the international airports of Valencia and Alicante, which are both around an hour away by a vehicle. The island of Ibiza is also close and can be accessed by ferry in 30 minutes.
It is your decision where to buy a home, and we are pleased to assist you in finding your dream home.
Frequently Asked Questions About the Golden Visa
What are the eligibility criteria for a golden visa?
- You are not a citizen of the European Union, Switzerland, or the European Economic Area.
- You must be at least 18 years old.
- Investment that qualifies
- No criminal history
- Spend at least seven days in Portugal the first year, and no less than 14 days every two years after that (this is called the stay requirement)
Spain also has certain extra requirements:
A legitimate medical insurance policy as well as a certified health certificate
You must have sufficient cash to live in Spain.
- Is it necessary for me to live in Spain in order to obtain a golden visa?
There is no requirement to live in Spain to take advantage of the golden visa perks unless you intend to apply for full Spanish citizenship in the future. In such a situation, you must spend six months of the year in Spain.
What are the tax implications?
We present a summary below:
Spain
Annual property taxes are normally between €200 and €400.
Income tax is only levied if you live in Spain for more than 183 days.
Any (rental) revenue generated by the property is taxed at a rate of 24.75 per cent.
Capital gains taxes range from 24 to 27 per cent.
Portugal
- Visa holders are exempt from paying taxes on income earned outside of Portugal if it is already taxed abroad.
- During the first ten years, any income derived from Portugal would be taxed at a fixed rate of 20%.
- You can also leave your fortune to a spouse or dependant without having to pay inheritance or gift taxes.
There is also the possibility to register as a fiscal resident for tax purposes in Portugal, allowing you to take advantage of the Non-Habitual Tax (NHR) Regime. NHR is a substantial tax programme that provides several rewards based on your total income. It provides tax-free incentives in specific areas for up to 10 years. Dividends, real estate income, capital gains from the sale of real estate, pensions, royalties, and business/self-employment earnings are all examples of income that may qualify under the NHR programme.
- What are the legal costs associated with applying for a golden visa?
-Spain
Legal fees for a family of four are typically approximately €9,000 for the initial application and €2,500 for each renewal.
-Portugal
The government charge for applying for a Portugal golden visa is €5,173.60 per family member. Renewal costs of 50% of those rates apply every two years. In addition, there is a processing charge of € 520.40 for the primary applicant and € 80.20 for each family member on application and renewal. Dependents under the age of 18 will be covered for free.
- What other expenses can I anticipate?
The majority of our clients desire to purchase a newly constructed residence. In addition to the purchase price, there is a 6% transfer tax. The transfer tax on existing properties is significantly greater than on new ones: 10%. While legal expenses vary, they are generally 4% of the acquisition price. In other words, if you buy a new home, you should anticipate paying a total cost of 10%. This is around 14 per cent for an existing property.
- How long can I stay in the Schengen zone?
You can travel to any nation in the Schengen region if you have a valid residency permit. You may spend up to 90 days outside the nation that issued your residence permit in each 180-day term. These are the same privileges as citizens of Schengen member nations.
Are there any other questions? Please get in touch!
