Golden visa: What is it, requirenments and new ways to obtain it

First of all, it is important to state that those non-resident foreigners who develop a significant capital investment may obtain residence authorisation for investors – also known as Golden Visa. The legal framework of Golden Visa is established in the Law 14/2013, de 27 de septiembre, de apoyo a los emprendedores y su internacionalización. 

This Law considers 3 main investment situations:

1) Initial investment for a value equal or higher than:

• Two million Euros in Spanish public debt securities.
• A million Euros in shares of Spanish capital companies with real business activity.
• A million Euros in investments funds.
• A million Euros in bank deposits of Spanish financial institutions.

2)      A business project to be developed in Spain and deemed to be of general interest.

3)      Acquisition of real estate located in Spain with a value of €500.000 or more per applicant.

We would like to go into detail about this last way to obtain the Golden Visa.

Traditionally, it has been understood from a restrictive way, so the situation included in the idea has been the following one: a foreign non-EU who buys one or several real estates, for an amount of €500.000 or more.

However, thanks to the Supreme Court Sentence number 1134/2020, 30^th July, the concept «acquisition» has been reinterpreted, and therefore, this requirement for obtaining the Golden Visa.

In particular, the Court focused on establishing if someone can acquire – a requirement of the Law to get the Golden Visa – by accession and not only by purchase. 

Let us remember that the accession is a type of acquiring ownership, in which the owner of a thing makes his own what is incorporated into it by work.

Therefore, the Supreme Court has established a new jurisprudential doctrine based on the fact that the acquisition of real estate may be done by different types of acquirement –against payment- of the proprietary right, in this case, accession, and not only by purchase, which would comply with article 63.2 b) of the Entrepreneurs Law.

Thus, Supreme Court decided that, in this case, there are two acquisitions: the first one due to the purchase of the plot of land, and the second one by the accession of the built housing. So, both of them can be considered as investments and summed up to €500.00 to obtain the Golden Visa.

It would be necessary to compare the previous situation to a similar one, which cannot be considered as an “acquisition of a property” and so, cannot entitle you to get the Golden Visa: The renovation, refurbishment or restoration of a newly purchased property, even if its cost reaches or even exceeds €500,000 in total.

Consequently, we would like to summarise the options that entitle you to get the Golden Visa in Spain by acquiring real estate:

• The acquisition by purchase of one or more real estate already built for a value of €500.000 or more.
• The acquisition by purchase of a plot of land and the following construction of a building on it for a value of €500.000 or more.

In conclusion, this sentence can be considered positive since many investors have the necessary profile to take advantage of this new possibility of constructing their own property for the purpose of obtaining the Golden Visa.

Find out about foreigner’s rights here

At Pérez de Vargas Law Firm we are very experienced in residency issues, and we will be very pleased to solve any doubts you may have.  

Contact details – Perez de Vargas Law Firm – Tel. 952 77 88 48, marbella@perezdevargas.com y la dirección postal es: C/ Mª Auxiliadora, 2 – Edif. Pata-Pata, 5º 29602 Marbella (Málaga)

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