Spain has introduced a new law to encourage foreign entrepreneurs to invest in Spain that offers residency permits to non-EU nationals in return for an investment of €500,000 or more in Spanish property.
This law enables non-EU nationals to get qualified residency permits in return for investing in Spanish real estate (and other assets), leading to permanent residency in Spain if certain conditions are fulfilled.
The Law 14/2013 on the support and internationalization of entrepreneurs came into force on September 28th 2013. This Law aims at supporting the entrepreneurs and business activity; to facilitate development, growth, and internationalization and to encourage an entrepreneurial culture and a favourable environment to economic activity.
This Law contains also important developments in the scope of Immigration Law. It facilitates and speeds up the granting of visas and residence permits for nationals of countries that do not belong to the European Union or the European Economic Area, in order to attract investment and talent to Spain.
One of the most important measures adopted in this new legislat8ion is the granting of residence visa to foreigners who:
- Invest over 500.000€ in real estate located in Spain. The 500.000€ is the total minimum investment, free of charges and encumbrances which may consist of the purchase of one or several properties of a residential, tourist, rural, commercial or industrial nature, rural land, development land, building under construction, or decrepit buildings.
- Create employment through the establishment and implementation of business projects in Spain.
- Invest in business projects that have a relevant impact from the perspective of general interest or scientific or technological innovation.
- Take on Spanish public debt amounting to at least 2.000.000€, or invest in shares or quotas in Spanish companies or bank deposits in Spanish banks for a minimum of 1.000.000€.
The investor’s spouse and children under 18 (or older disabled children) can also be covered by the residence permit of the investor.
There is no obligation to spend a minimum amount of time in Spain, so investors may remain tax residents outside of Spain, while benefiting from Spanish residence and freedom of travel in Schengen countries within the maximum periods authorized for visits by the Schengen regulations.
The visa is given at first for one year, and after that residence permit can be renewed two times for terms of 2 years each until a maximum of 5 years in total. The Government has not specified in any formal statement what will happen after the first five years have passed, but we assume at this point, that the residence can be maintained as long as the investment is maintained in Spain. This remains to be seen within the following months and years.