Blog

Spanish Golden Visa for Investors: Year 1

10/03/2014 Rafael Guerrero

If you are a non-EU national with €500,000 or more to invest in property in Spain you can receive a Spanish residence permit known as the Spanish Golden Visa.

If you haven’t already, read our introduction to the Spanish Golden Visa to find out if you meet the requirements:

Golden Visa: Spanish Residence Permit for Non-EU Investors

As a foreign investor, how do I begin the process of buying property in Spain?

First of all, you are granted a 90-day visa to come to Spain to search for property. Once you have found a suitable investment, you sign a power of attorney granting our conveyancing solicitors at Andalucía Lawyers the right to act on your behalf in the property conveyancing and residency processes.

Is it necessary for me to visit Spain personally to find a property?

No, if you find a property you are prepared to buy without having seen it yourself, you can authorise our property solicitors at Andalucía Lawyers to purchase the investment on your behalf with a power of attorney from your home country. However, it’s worth noting that not all countries allow this, so it’s a good idea to check with us first.

How do I apply for the Spanish Golden Visa?

Once you have bought a property that meets the investment criteria, you apply for your one-year Spanish golden visa which can be issued for one, two or multiple entries into Spain; our conveyancing solicitors can do this for you. In the vast majority of cases, the visa application is processed and notification sent within 10 working days.

What rights does the one-year Spanish Golden Visa grant me?

The one-year investor visa allows you to spend one year in Spain, and travel freely in the Schengen area for 90 out of every 180 days.

Am I obliged to stay in Spain with the one-year golden residence visa?

You are not obliged to spend a minimum amount of time in Spain. However, to get a residency permit at the end of the first year, you must have visited Spain at least once during that year. Therefore, it is very important that you only apply for the one-year investor visa when you are sure that you will be coming to Spain in the following twelve months.

What happens after the first year?

You can apply for authorisation to live in Spain for two more years, renewable for another two years after that, indefinitely.

The Next Step

Spanish Golden Visa for Investors (Years 2 to 5+)

Spanish Golden Visa for Investors: Years 5-10+

Spanish Golden Visa for Investors: Years 2-5+

Golden Visa: Spanish Residence Permit for Non-EU Investors

10/03/2014 Rafael Guerrero

If you are a non-EU national with €500,000 or more to invest in property in Spain you can receive a Spanish residence permit known as the Spanish Golden Visa.

What is the 14/2013 law?

The 14/2013 law, known as the Spanish Golden Visa, came into force on 27 September 2013. It enables non-EU nationals who invest €500,000 or more in property in Spain to receive a Spanish residence permit. So far it has proven most popular with Russian and Chinese investors, as well as residents of Egypt, Qatar, Iran, Lebanon and Ecuador.

What types of residence permits are granted under Spain’s Golden Visa law?

One-year residence visa for investors (year 1)
Two-year residence visa for investors (years 2 to 5+)
Long-term residence and Spanish nationality (year 5 onwards)

Am I eligible for a Spanish residency permit under Spain’s Golden Visa law?

If your answer to these questions is yes:

Are you 18 years old or older?
Do you possess public or private health insurance valid in Spain?
Can you demonstrate you have economic resources to support yourself, the applicant, as well
as any dependents?
Can you prove you are able to pay the visa processing fee and applicable taxes?

And your answer to these is no:

Have you ever entered or stayed illegally in Spain, or been refused entry into any Schengen countries?
Do you have a criminal record?
Are you listed as undesirable in Spain?

Then you are eligible! Read on to find out more.

Is my family included in the Spanish investor visa?

Yes, your spouse and any children under 18 (or any older disabled children) may also apply for golden residence permits under your investment.

What is the investment threshold for the Spanish Golden Visa?

The property investment threshold is €500,000 or more per investor.

What are the investment criteria for the Spanish Golden Visa?

The investment can be comprised of one or more properties, which may be of a residential, touristic, rural, commercial or industrial nature; rural land, developed land, buildings under construction or decrepit buildings.

Are there any restrictions on property use?

There are no restrictions on property use; investors can use the property in any way that is legal.

What are the financing criteria for Spanish Golden Visa?

Investors must use at least €500,000 of their own funds, which must come from transparent sources that comply with existing legislation. Above that threshold there is no limit to debt financing, for instance with a mortgage in Spain.

Can I make the investment through a company?

Yes, you may make the investment through a company so long as you have control of it and it is not based in a tax haven.

The First Step

The Spanish Golden Visa for Investors: Year 1

Spanish Golden Visa for Investors: Years 5-10+

Spanish Golden Visa for Investors: Years 2-5+

Spanish Golden Visa for Investors: Year 1

Employment, Payroll and Dismissal

05/23/2014 Rafael Guerrero

Employment

In Spain, the legal minimum employment age is 18. However, 16 and 17 year-olds are allowed to work with parental consent. All employees must be provided with an employment contract on or prior to their first day of employment. It is possible to have a trial period (periodo de prueba) included in an employment contract, but it is often limited by law or collective agreements to 2 months.

Types of Contract

Tiempo completo: full-time (often 40 hours per week).
Indefinido: a full-time contract for an unlimited time period.
Temporal: a full-time contract for a set period of time.
Tiempo parcial: part-time (number of hours agreed between the employer and employee with pay and social security payments set accordingly).

The maximum number of weekly work hours is 40. You cannot exceed 9 hours per day. Overtime hours cannot exceed 80 per year, they cannot be compulsory and they must be compensated economically or by time off.

If you accept a contract as a self-employed individual (autónomo) it is worth reading up on self-employment in Spain.

Read out article Starting a business in Spain – Registration of self – employment (autónomo) to find out more about being self-employed in Spain.

Salary

There is a minimum wage that is fixed annually by the government. Based on this figure there are binding general wage agreements (convenios colectivos) for most sectors.

A peculiar aspect of the payment of salaries in Spain is that employees expect to receive, as a general rule, 14 annual payments; 12 corresponding to the worked months and two extraordinary payments, one at Christmas and another during the summer.

Social Security Contributions

The general risk contribution represents 28.3% of an employee’s wages, with the employer paying 23.6% and the employee paying 4.7%.

The government offers hiring bonuses to employers taking on permanent staff. These vary according to the type of employment the government is seeking to encourage. Some examples are the employment of unemployed women, women who’ve given birth within the last 2 years, young people (below 30) and the disabled. The bonuses can be up to €1,500 per year for four years. The bonuses for disabled employees tend to be higher and for a longer period of time.

Holidays

Holiday rights are set by agreement (convenio) but 30 days a year is the standard, with Saturdays and Sundays included. There are also 12 national public holidays and two local public holidays per year.

Monthly Wage

Every month the employer has to produce a wage slip (nómina) which includes an analysis of the employee’s salary and deductions for the month. It is the employer’s responsibility to deduct the employee’s social security contributions and income tax. The employee keeps a copy and the employer keeps another copy which must be signed by the employee.

Business