FOR SPAIN-THE NEW ‘GOLDEN VISA “OR” VISA INVESTORS’
The resident for investment programs across Europe are beneficial to both parties: Investors get free access to the Schengen Area while countries offering so-called Golden Visas attract billion-dollar investments. However, some recipients might use the granted advantages to avoid paying taxes, bringing the concept under increased scrutiny.
“Golden Visa” programs, allowing any foreign national above the age of 18 to become resident in a host country with the guarantee of a minimum investment in designated fields, including real estate.
The procedure is relatively straightforward and short in comparison to other ways of obtaining residency (via marriage, employment or family reunification). The authorities do not require applicants to be fluent in the host’s national language or even know the country’s history, and document checks take from a couple of weeks to several months.
The Terms of the Deals
Greece, Spain, Cyprus and Portugal jumped on the bandwagon and started issuing residence permits to foreign nationals investing in their economies. Malta, having had a similar program since 1988, made the investment terms more flexible.
Spain launched its golden Visa programed in 2013. An investment of €500.000 in real estate will gain family residency. The Spanish investor visa can be renewed every two years. After five years it is possible to gain permanent residency and after ten years citizenship. It is not necessary to live in Spain in order to retain and renew the residency visa permit.
It is possible to apply for permanent residency in Spain after living in the country for five years. Citizenship can be applied for after living full time for ten years. Although the temporary residency permit (the golden Visa) can be easily renewed without living in the country, the route to both permanent residency and citizenship requires the investor and their family to reside in Spain. For this reason many investors prefer the option of Portugal where such residence is not a requirement.
Foreign investors are now able to obtain a residence Visa for Spain when buying a Spanish property, this is known as the “Golden Visa Visa or the real estate ‘ or even the ‘ investors ‘ visa. The Visa is offered to individuals who have a minimum of five hundred thousand euros invested in the House or a selection of properties. Spain’s ‘ Golden Visa “or” Investor Visa. Onroerendgoedbeleggers now allow can to obtain a Visa to stay in Spain and to travel freely through the European Union.
This new law becomes law once it is signed by the King of Spain soon. Within the legal guidelines-that is not changed from the initial original formatting laws, non-European citizens meant that at least €500,000 ($845, 564) (without funding to that amount) investing in homes, commercial real estate or country, can stay in Spain and can also legitimate within the 26- Schengen zone countries travel.
Individuals have the right to purchase several properties to meet the required levels of qualifications of €500.000, and they can private persons or business organizations as long as they meet the specific requirements. There are no set requirements that any kind of stay a particular utility, so owners can rent their property for personal or commercial use. The first step must be for property investors to submit a visa application that allows them to stay in Spain for 12 months.
There is not really a requirement to a minimum period in Spain during this period, provided that they can prove that they are in this period at least once in Spain. Once an investment has been made and before the visa for the first year has expired, then investors can submit an application for a residence permit with which they can stay in Spain for two years, which from that date with another two years can be renewed. as long as the investment limit of €500.000.
There is no limit to the number of intervals that this biennial residence can be extended. After five years of uninterrupted stay in Spain can individuals an unlimited residence permit. Currently, the situation, after 10 years at Spain, you can apply for Spanish nationality -on conditions for all other requirements, for example, a resident of the country for at least 183 days per year.
After several years of price declines real estate is now at rock bottom prices and the Spanish property market offers considerable potential for capital gains in the coming years. Investors need to consider their purchase carefully. Is it for investment and rental or lifestyle? There are many offers on the market from developers and banks but location and property type is critical to the success of the investment.
The fruits of the programs already can be seen: Thousands of foreign nationals have used the opportunity to obtain residence by investing billions of euros in participating countries’ real estate markets. Foreign buyer interest has encouraged the prices per square meter to grow.
However, residence-for-investment programs can become a tax loophole. As stated in a report by the Organization for Economic Co-operation and Development (OECD), the absence of tax-residency control under the programs leads to violations in data reporting under the Common Reporting Standard (CRS), which obliges all EU member countries to send data related to non-resident bank accounts to the local tax authorities.