The Golden Visa program is a special type of residence created especially for all citizens from outside the European Union who want to move to Spain and make a significant investment in Spain.

The “Golden Visa” or “Residence Visa for Investment” is a Spanish permit, granted to foreigners, which allows them to reside and work in Spanish territory.

Please remember that if you are not legal resident in a EU member state, you cannot live, residence, remain in our country permanently without applying migration restrictions.

In case the Golden Visa Program is granted, foreigners making certain investments may reside in Spain for an initial period of one year, which may be extended for successive periods of two years without a maximum of years provided that certain requirements are met. In practice, this implies being a long-term visa and, unless specific circumstances arise, you should be able to continuously remain Spanish legal residence and have access to the rest of EU member states freedom of movement principle withing the European Union.

The foreign investor must make an investment in Spain, which will constitute the qualifying event or assumption for the application and subsequent granting of the residence visa for investors.

Real estate Investment

Most of the Golden Visa programs are obtained by acquiring a real estate in Spain for a minimum price of EUR 500,000 per applicant. The applicant may obtain financing to acquire the real estate, but in order to be able to apply for the visa he must prove that an unleveraged investment of at least EUR 500,000 has been performed per person. The property may be shared with the spouse, children or any other third party whether company or individual. The property may have a mortgage.

The property once held by individuals, it will be subject to several taxes. However, regarding wealth tax on the property, it will be taken the net asset value not the purchase price. Remember that legal entities holding properties in Spain are not subject to wealth tax.

The investment may be carried out as individual or through a legal entity, although in the latter case, provided that it is not registered in a territory that is considered a tax haven under Spanish law, and the applicant holds, directly or indirectly, the majority of the voting rights, as well as the power to appoint or dismiss the majority of its administrative members or of its administrative body.

Financial Investment

Another option is a financial investment which should be made in one of the following assets:

• In Spanish public debt securities for a minimum vale of EUR 2,000,000.
• In shares of Spanish companies for a minimum value of EUR 1,000,000.
• In participations of Spanish companies for a minimum value of EUR 1,000,000.
• In bank deposits in Spanish financial institutions for a minimum amount of EUR 1,000,000.

Solidarity tax

Spain’s solidarity tax on large fortunes is a tax imposed on the wealthiest residents to help the government deal with the cost of living crisis.

As the name implies – ‘impuesto de solidaridad a las grandes fortunas’ or ‘solidarity tax on large fortunes’ – is only imposed on very wealthy individuals and most people will not be affected.  It is temporary in nature and although it is extra to Spain’s regular annual wealth tax, you do not pay tax twice.

This is a central state tax (not ceded to the autonomous communities) and the allowances and tax rates cannot be modified by the regional governments.

It applies to:

• Spanish tax residents with net wealth above €3 million. When calculating an individual’s net wealth, worldwide assets will be included in the calculation.
• Individuals not considered Spanish tax residents with net Spanish assets above €3 million.

Spain’s solidarity tax works in the same way as the regular wealth tax.

Spanish tax residents can reduce their general taxable base by €700,000.

In addition, tax residents owning a Spanish main home will also be able to deduct up to €300,000 euros from the net value of the main home.

Since solidarity tax only applies to wealth above €3 million, in most cases only those with a net wealth higher than €4 million will have a tax liability.   And this is per individual, so spouses/civil partners with joint assets each have their own allowances.

Likewise, the same exemptions applicable to the regular wealth tax are also applied to this tax with the same requirements, for example, the exemption on family businesses.