The Golden Visa in Spain allows you to obtain residency in Spain through real estate investment. This program has attracted the attention of investors from around the world seeking the opportunity to live, work, or enjoy extended stays in Spain.
In this article, we will detail how the Golden Visa works in Spain, its requirements, benefits, investment options, and important considerations for those who wish to take advantage of this route to settle in Barcelona.
Since the 1992 Barcelona Olympics and the establishment of the Mobile World Congress, Barcelona has gained renown and is a highly valued city among those who enjoy its mild climate, exceptional location, architecture, and gastronomy. An increasing number of foreigners are requesting real estate as a way to obtain a visa and enjoy Barcelona.
The Golden Visa in Spain, formally known as the “residence visa by investment,” is a very attractive option for non-EU investors who wish to obtain residency rights in Spain and, by extension, in the European Union. This initiative was introduced in 2013 through the Entrepreneurs Law, Law 14/2013 of September 27, 2013, which was passed with the aim of attracting foreign investment and stimulating the real estate market and the country’s economy.
The current government believes that, given the strained real estate market, demand from non-EU investors is negatively impacting property prices. Last April, the government of Pedro Sánchez announced a review of the mechanisms for obtaining the Golden Visa. The fact is that fewer than 15,000 Golden Visas were granted between 2013 and 2023. This number is negligible compared to the number of properties acquired by resident and non-resident EU citizens. However, the conflict between Ukraine and Russia has led to a surge in visa applications from citizens of these countries, and the European Commission has called for a review of the visa granting system to prevent money laundering.
The mechanism remains in effect until the Congress of Deputies confirms its revision and it is approved by the Senate. This process can take months.
Advantages of the Golden Visa and Real Estate Investment
This mechanism not only represents an entry point to the Spanish real estate market but also opens the door to residency and economic activity in the country for the investor and their family. By purchasing real estate in Spain, the investor will obtain:
- Legal residency in Spain: The initial residency permit is for two years, renewable for an additional five years as long as the investment is maintained.
- Free movement within the Schengen Area: This allows the investor and their family to travel visa-free within the Schengen Area, comprised of 26 European countries.
- Fast application process: The Golden Visa application process is relatively quick and can be obtained in a couple of months.
- No residency requirement: Unlike other residency permits that require a minimum number of days of residence in Spain, the investor is not required to live in Spain to renew the visa.
- Family residency access: The spouse, children under 18 or dependents, and dependent parents can accompany the investor on their travels to Spain. Spain.
After five years of legal and effective residence in Spain, the investor and their family can apply for permanent residency and, after ten years, Spanish citizenship, provided they meet all other legal requirements, including proof of integration and a basic knowledge of the Spanish language.
To obtain the Golden Visa, it will be necessary to purchase one or more properties with a minimum total value of €500,000. At Arquitectura Residencial, we have properties that can serve as the vehicle for obtaining the visa.
It is important to note that the investment must be free of encumbrances; that is, the minimum amount must be without mortgages or loans, excluding taxes and closing costs. Furthermore, compliance with the Money Laundering Law is mandatory.
If a property of higher value is acquired, a mortgage can be taken out for the difference, up to €500,000. Please note that mortgage setup fees, notary fees, registration fees, and other related expenses are not included in the €500,000.
Most of our clients take advantage of this opportunity to acquire high-end properties where they will reside, although it is increasingly common to acquire properties such as offices or commercial premises to rent out and generate a return on investment.
Some of the properties currently available for investment are:
Our recommendation is to purchase properties in the center of Barcelona, Eixample, or even Sant Gervasi and Diagonal Mar. We always recommend buying properties that are easy to resell if needed or if you change residence. Penthouses or apartments on high floors, with elevators and, ideally, terraces and shared amenities, can be attractive options.
Income-generating assets are also worth considering; commercial premises and offices in prime locations, on Barcelona’s main commercial thoroughfares. In this case, we recommend choosing properties on the most sought-after streets to ensure high occupancy rates, and even acquiring properties that are already leased.
At Arquitectura Residencial, we stay up-to-date on all regulatory changes that may affect the Golden Visa. Contact us for more information and to discuss your needs so we can find the ideal property.
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