Spain has issued more than 35,000 golden visas to applicants as well as their dependent family members since its program started in 2013.
While the numbers are impressive, the Spanish golden visa attracts little interest from wealthy investors.
The investor visa is just one of several types of long-term residence permits issued under Spain’s Entrepreneurs Support Act. Other permits include intercorporate transfers, work permits for highly-skilled professionals, and entrepreneur visas.
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Maximum permits were issued under the highly-qualified workers and intra-corporate transfer categories. Just 681 real estate investors and 20 investors making capital investments in Spanish companies were granted permanent residence permits over the seven-year period.
From 3,364 visas in 2014 to 8,061 visas in 2019, numbers have grown but this has not resulted in greater foreign investment. Instead, the visa has been used more as a route to apply for long-term permits for foreign skilled workers.
A breakdown of the nationality of applicants receiving golden visa shows China at the top with 8,200 permits followed by India, Russia, the US, and Brazil.
Yet, the number of visas allocated to investors into real estate, Spanish companies or government bonds does not indicate high demand.
Qualifying for the Spanish Golden Visa
Spain requires investors to make significant investments equal to or above the minimum amount in specific assets.
- €2 million in Spanish public debt securities/bonds, or
- €1 million equity investment in Spanish company with actual business activities, or
- €1 million equity in investment funds or closed-end investment funds or venture capital funds established in Spain, or
- €1 million in a bank deposit in a Spanish financial institution, or
- Real estate investments in Spain of value not less than €500,000.
Golden visa investors across the world prefer real estate investments over all other options to qualify for investor visas. The property serves as a home, offers the opportunity of long-term capital gains through value appreciation, and is a passive investment involving lower risk as compared to buying equity in a foreign company.
Greece’s golden visa is available to investors buying property worth jut €250,000 while Portugal has a €500,000 and €350,000 option for normal and rehabilitated properties respectively.
Spain’s golden visa is an expensive proposition and an investor with €2 million to allocate may well choose to buy real estate in Cyprus and qualify for direct EU citizenship.