YOU may have heard the term 'Golden Visa' as a method of getting residence or even citizenship in certain European Union countries, including Spain – perhaps you are wondering whether you would qualify, or are just curious about who might, and whether it is really an easy option.
The ‘Golden Visa' is a system that makes it easier to obtain residence or even citizenship of a participating country - if you can afford to use this route. In the case of Spain, a ‘Golden Visa’ means you can also travel freely around the Schengen zone (photo: European Parliament)
It is definitely a popular one, according to the latest research. IDBO Consultants reveals that the number of homes bought in Spain by foreign nationals from outside the European Union (EU) rose by 45% in 2022, totalling 88,000, or 13% of the country's total residential property sales.
What is it?
'Golden Visa' is a colloquial term, not an official one. It means an automatic residence permit is granted to any non-EU national who invests a significant sum in Spain, subject to other factors, as explained below.
It is also a short-cut to Spanish citizenship, meaning you will then be allowed to vote in national elections.
Unlike Spanish citizenship based upon length of permanent, full-time residence in the country, getting Spanish nationality through a 'Golden Visa' is compatible with your existing citizenship – you can keep both, and do not have to renounce that of your birthplace.
How do you get one?
The most common way to obtain a 'Golden Visa' is by buying a home in Spain. This can be either a second or holiday home, or a main residence, but must be valued at a minimum of half a million euros (€500,000).
You do not have to live full-time in Spain to keep your residence rights if you use the 'Golden Visa' method – you only need to travel to the country and spend at least a week there once a year.
Spending €500,000 or more on buying a property in Spain means you can apply for a ‘Golden Visa’, as long as you meet the other criteria (explained below)
Other ways of getting this privileged permit, without buying a home in Spain, include investing at least €2 million in national public debt bonds, or a minimum of €1 million in either shares in Spanish companies, investment funds based in Spain, or left on deposit in a Spanish bank.
Is it permanent?
Investors or property owners who qualify for a 'Golden Visa' can opt for a residence permit of up to two years in Spain, which they can then renew, extending it to a total of five years.
After this, the holder can then apply for Spanish citizenship.
What other conditions apply for getting a 'Golden Visa'?
Applicants must be at least 18 years of age, unless they are the dependant children of an adult applicant.
EU citizens do not qualify, since these already have the advantage of freedom of movement throughout the 27 member States, of which Spain is one, so it is considered that they do not need to take advantage of the system.
'Golden Visas' will not be granted if you have a criminal record from within the past five years, in any country.
You must have a valid healthcare insurance policy, which can be via a private firm or offered by a State organisation, since you will not be allowed to use Spain's public health service unless you live there full-time.
Acquiring a 'Golden Visa' involves having to prove you have sufficient financial resources to maintain your investment and to support yourself and any family members living with you who do not qualify in their own right – but, given that this system is aimed at high-net worth buyers and investors, it is likely this will automatically be the case.
What are the main advantages?
The most obvious advantage to a 'Golden Visa' is that you can come and go as you please, and stay as long as you like.
And not only in Spain – a 'Golden Visa' in any Schengen country, of which Spain is one, automatically grants you entry to any other Schengen nation.
The Schengen zone is a network of European countries which allow residents to travel between them without a passport or border checks.
As well as making it simpler to enter the Schengen zone, a ‘Golden Visa’ in a participating European country is easier to process - you can do it all from home rather than going to foreigners' offices in Spain in person (photo: Forbes)
Also, a 'Golden Visa' is a fairly quick and convenient way of dealing with the administration involved in getting residence in Spain. The process takes a maximum of six months from the date the application is received, and you do not need to do any of it in person, meaning you can do it all from your home country.
For Spain, the advantages of 'Golden Visa' applicants include a constant boost to the national economy and to the property market – and normally a very financially safe one, given that homebuyers who fit this profile do not usually need a mortgage.
Why is Spain such a popular 'Golden Visa' destination?
Some of the reasons 'Golden Visa' investors choose Spain are financial.
For an average earner already living in Spain, a property valued at half a million euros would be beyond their budget – but, compared with the majority of Europe, especially more northern countries, this price can even be below average.
In many European cities, €500,000 may only be enough for a small apartment; out in the provinces of these countries, you would be lucky to find an average-sized family home for this sum. But in Spain – depending upon where you want to buy – it is enough to acquire you something very spacious and, often, luxurious.
As it's a well-loved and mature holiday destination, a 'Golden Visa' property in Spain, in addition to giving you more space and comfort for your money, could become a regular source of earnings if you decide to let it to tourists – although make sure you seek professional advice before doing so, to ensure you are following all legal requirements.
Spain continues to be one of Europe's more affordable countries for buying a home, meaning you get more space and luxury for your €500,000. But very high-end properties are easy to find if you don't have a budget limit. Here, Villa Cullinan on the urbanisation Zagaleta in Benahavís (Málaga province) was up for sale last year for €32 million (photo: YouTube)
IDBO Consultants' foreign law expert, Julia Alejandra Guzmán Serrano, says Spain has a 'very diversified economy' based upon a 'solid framework', with a business climate that is 'very favourable for overseas investors'.
Spain is considered relatively safe in financial terms, without extreme peaks and troughs in inflation or interest rates – the latter of which depends upon the Central European Bank (BCE) – and price rises or falls over time in all commodities tend to be far less sharp and dramatic than in many of the largest world economies.
Currency is a factor, too: Spain uses the euro, which is one of largest currencies in the world along with the US dollar, and which is widely accepted internationally.
Non-financial reasons 'Golden Visa' applicants opt for Spain, according to IDBO Consultants, are the fact it is one of the safest countries on earth – violent crime is, statistically, among the lowest in the world – with a generally pleasant and stable climate, guaranteed summers, mild winters on the coasts and islands, and with extreme weather phenomena being very rare indeed.
Where the most 'Golden Visa' homes are sold
These tend to be the regions with the most high-end or luxury residential property available, such as the Balearic Islands, the Mediterranean coast, and the cities and wider provinces of Barcelona and Madrid.
Last year's 8,975 'Golden Visa' sales represented a 63% increase on those of 2021, and in fact accounted for a third of all home purchases in the Balearic Islands.
The Canary Islands also proved to be a key location, with 28.6% of homes being sold to non-EU nationals using the 'Golden Visa' system.
Although the Comunidad Valenciana, along the east coast, was behind the two island regions with 26.5% of property purchases involving a 'Golden Visa', the highest figure nationwide was in its southernmost province, Alicante, where over four in 10 residential properties were sold via this high-net worth scheme.
MORTGAGE-LENDING has reduced dramatically in Spain in the past year, but that has not stopped homes on sale being snapped up: Over a third were purchased in cash, according to the latest figures.
