The End of The Spanish Golden Visa: On May 24th 2024, the Parliamentary Group SUMAR presented the new law proposal N°112-1. This law proposal aims to modify Law 14/2013, of September 27th, more specifically, Articles 63 and 64 of the latter law, which governs the Status of Golden Visas in Spain.
According to this proposal:
According to this proposal, the Golden Visa, as defined in Article 63, provides residency to non-EU nationals who make significant investments in Spain. This visa aims to attract foreign investors by offering benefits such as residency permits for themselves and their families, promoting economic growth and development within the country.
Golden Visa Explained: What Article 63 Means for You
Non-resident foreigners who intend to enter Spanish territory for the purpose of making a significant capital investment may apply for a stay or, if applicable, a residence visa for investors”.
What Counts as a Significant Capital Investment?
A significant capital investment shall be understood as one that meets any of the following conditions: An initial investment with a value equal to or greater than:
- 2 million euros in Spanish public debt securities, or
- A value equal to or greater than one million euros in shares or equity interests of Spanish companies, or bank deposits in Spanish financial institutions.
A business project to be developed in Spain that is considered and accredited as being of general interest, for which at least one of the following conditions must be met:
- Job Creation: The project should result in the creation of new job opportunities, contributing to employment growth in the region where it is implemented.
- Socio Economic Impact: It should involve making a substantial investment that benefits the socioeconomic environment of the local area where the project operates. This could include improvements in infrastructure, community services, or other developments that enhance the quality of life for residents.
- Scientific and Technological Innovation: The project should introduce significant advancements in scientific or technological fields. This innovation could range from pioneering research and development initiatives to the adoption of cutting-edge technologies that promote competitiveness and progress within Spain’s economic landscape.
What are the conditions of the capital investment to be effective?
It shall also be understood that the foreign applicant for the visa has made a significant capital investment when the investment is carried out by a legal entity, domiciled in a territory not considered a tax haven under Spanish law, and the foreigner directly or indirectly holds the majority of the voting rights and has the power to appoint or remove the majority of the members of its administrative body.
In any case, the investment must not cause environmental damage, must be in line with available natural resources, and must not have an inflationary effect on housing in the geographical area where it is intended to be made. In this regard, the competent bodies of the Autonomous Communities may issue a binding report for the visa granting procedure.
According to the new law proposal, what are the conditions to apply for a Golden Visa?
Article 64 of Law 14/2013, of September 27, on support for entrepreneurs and their internationalisation, is amended as follows:
Requirements for Obtaining the Investor Residence Visa
To obtain the residence visa for investors, the following requirements must be met: In the case provided for in letter a) of paragraph 2 of Article 63, the applicant must prove that the investment has been made in the required minimum amount, within a period not exceeding sixty days prior to the submission of the application, in the following manner:
In the case of investment in unlisted shares or equity interests, the applicant must present a copy of the investment declaration filed with the Register of Foreign Investments of the Ministry of Economy and Competitiveness.
In the case of investment in listed shares, a certificate from the financial intermediary duly registered with the National Securities Market Commission or the Bank of Spain must be submitted, stating that the applicant has made the investment for the purposes of this law.
In the case of investment in public debt, a certificate from the financial institution or the Bank of Spain must be submitted, indicating that the applicant is the sole owner of the investment for a period of not less than 5 years.
In the case of investment in a bank deposit, a certificate from the financial institution must be submitted, confirming that the applicant is the sole owner of the bank deposit.
Approval Process for Business Projects Under Investor Residence Visa
In the case provided for in letter b) of paragraph 2 of Article 63, a favourable report must be presented to confirm that the submitted business project meets general interest criteria. The report shall be issued by the Economic and Commercial Office of the geographical area where the investor submits the visa application.
Conclusion
The future of the Spanish Golden Visa program is evolving with the introduction of new legislation by the Parliamentary Group SUMAR on May 24th, 2024. This proposal aims to refine the criteria for obtaining residency through significant investments in Spain, emphasising job creation, socioeconomic benefits, and innovation. As these changes unfold, prospective investors should stay informed to seize opportunities in a dynamic and evolving economic landscape.