Legal Assistance For Investors

Description

The Law n. 14 27/09/2013, also known as the Law in support of entrepreneurs and investors, has introduced  the Permit of Residence for investors within the Spanish Law System.

In order to facilitate the entrance in Spain for economic reasons, this Law was planned and directed towards those foreigners interested in proceeding with a significative investment in Spain, as listed below:

1)     Acquisition of real estate located within Spanish territory of at least €500,000 per applicant

2)     Investing at least €1,000,000 in shares of publicly trading Spanish companies or non-trading ones

3)     Depositing at least €1,000,000 in Spanish bank accounts

1)     Investing at least €2,000,000 in Spanish Treasury bonds

4)     Entrepreneurial projects of general interest for Spain.

Firstly, it is required to obtain a residence visa to be requested either at the Diplomatic Mission or the Spanish Consulate of the country where the investor has the legal domicile.

Procedure:

Once the investment is completed, the entrepreneur is eligible to apply for a Residence Visa that allows to legally reside in Spain for an initial period of one year.

Concerning the Residence Visa:

• Only whether the investment is maintained, it can be renewed and switched to permanent.
• During its validity, it does not compel investor to reside in Spain.
• In order to maintain and renew it, the investor must enter the spanish territory only once.

In case of obtaining the Residence Visa and concurrently maintaining the investment, the investor is eligible to apply for a Residence Permit. This Permit allows the entrepreneur and his/her family to legally reside and work in Spain. It is issued for an initial period of two years. Moreover, the investor’s spouse and sons (either underages or adults of age not able to sustain themselves for health reasons) are also entitled to obtain The Residence Visa and Permit.

Besides the investment, other requirements must be satisfied by the investor, as following:

• Non-EU, CEE or Swiss national, nor family of citizens of those countries for which it is applicable the communitary regime.
• Not have entered or stayed illegally in Spanish territory.
• not hold a criminal record whether in Spain or in the previous five years where he has resided
• Have to be 18 years or over.
• Not have been refused to entry in any of the Schengen countries.
• Have access to a public or private health insurance authorized to operate in Spain.
• Have sufficient financial means to cover personal and family living expenses whilst in Spain.
• Not suffer illnesses that could mean negative repercussions for the Public health, according to the International Sanitary Regulations of 2005.
• Not be in the “plazo de compromiso de no retorno” to Spain, whether the investor has accepted a voluntary return programme.

What it is included:

Foreigners can benefit of the excellent possibilities of investment in real estate assets currently occurring in Spain, and at the same time obtain a permit of residence and employment.

Our expert immigration lawyers of Tolentino Abogados can help you processing your permit of residence with the purpose of assisting and making it easier for our clients to obtain this document. Since the moment you enter Spain, you can rely on our team. We are encharged of the process from the very first moment until the resolution of the application.

Our Immigration Lawyers can provide you with the following services:

• Assistance and management regarding the administrative, legal, work-related and formal requirements for the obtention of the Residence Visa.
• Assistance, processings, and management for the obtention of the Permit of Residence in Spain
• Opening the bank account
• Provisional NIE application
• Review of the property purchased
• Legal assistance about the procedures
• Legal assistance regarding the submission of the application form to obtain the permit of residence and work for highly qualified personnel
• Specialized and tailored legal assistance for enterprises and entities that demand the entry in Spain of foreigner highly qualified personnel.
• Fulfillment of the application form to be presented
• Presentation of the application form
• Monitory of the proceedings
• Scheduled appointments
• Arrangement of the fingerprints appointment
• Complete assistance during the proceeding from the presentation of the application form until its resolution

What does not include:

Our service does not comprise the assistance in Spanish Consulates. We personally assist within our Firm located in Madrid, Spain, and in Santo Domingo City, Dominican Republic.

With regard to other matters, we provide legal aid online.

Answers to FAQs

Which are the requirements to purchase a property in Spain?

Any natural or legal person of any country can buy a property in Spain.

However, depending on the country and his Authorities, there could be some limitations: for instance, in China, Morocco, India, etc about the exportation of capital or, in countries known as Tax Haven, about money laundering or origin of the capitals. These limitations could negatively affect the proceedings. In these cases the solution will be tailored according to the case, depending of the particularities of the latter. 

What is the NIE and how to obtain it?

The NIE is simply an identification number for foreigners in Spain, and it is not related to a legal residence.

All non-spanish nationality buyers must obtain one, either europeans or non-eu nationals; any natural or legal person. Natural persons can obtain it in three ways:

• Through the Spanish Consulate of the country where their domicile is.
• In person at the Municipality of the traded good ( In some cities, like Barcelona, it is necessary to schedule an appointment to get the NIE)
• Through a power of attorney that the client can grant his/her lawyers with.

Foreign societies can obtain the NIE/NIF at Hacienda. 

Do I have to attend every stage of the purchase?

No. Buyers can sign by power of attorney in Spain (best solution) or through a legalization process in his/her country of origin to be destined to his/her lawyers or to any trusted person. 

Do I need a Spanish bank account?

Yes. The easiest way to pay the final price of a real estate asset is through bank cheque issued by a Spanish Bank. It is not possible to use cheques of foreign banks and it is not recommendable to proceed to a bank transfer, prior to the obtaining of the titularity on the property. On the other side, the vendor will not sign the contract until he/she does not receive the total payment. Moreover, every expense regarding utilities, community costs and tax, etc. will be paid by direct debit to the client account, which must be spanish. 

What is the documentation that I need to open a spanish bank account and realize transactions?

In case of EU natural persons and some western countries, such us United States, Canada and Switzerland, etc., the majority of the banks will allow to open an account only by presenting the Passport. The NIE number is not necessary. In other cases, in order to open a bank account and proceed with transactions, it is required to provide the translated documentation with endorsement (apostille), especially to prove the origin of the funds (Tax declarations, bank statements, working contracts, etc.)

The procedure will depend on the client’s country and the bank entity. Even same agencies of the same bank can request different criteria to meet. It is important to know that every bank has the obligation of knowing its clients in person, being the only stage of the process that cannot be satisfied by using a power of attorney. The client must show him/herself just once, and every other step can be completed by power of attorney.

Having an open account in  Spain does not allow every importation of funds. For Natural persons from EU and some western countries it will be easier, since it can be done normally by attending an interview with the bank or by writing a formal letter in which the client will explain the origin of the funds, the destination, etc. 

Can I obtain loans in Spain?

Normally yes. Requirements will depend on the bank entity and the nationality of the client. Generally, foreigners can obtain loans up to 65% of the total taxation (or of the purchase price whether it is lower than the taxation price), for a maximum of 25 years, as long as the monthly share does not exceed the 30% of his/her incomes (to be shown). Interests can range from Euribor + 3,5% and + 4,5%. 

It is better to purchase through my name or by establishing a company?

Depending on the factors, as listed below:

• Country of origin and pre-client structure.
• Investment Value
• Age and other characteristics
• Intended use of the property
• Type of property (Housing, New/to be renovate property)

In case of buying only one property for personal usage or simply for renting purposes, it is not preferable to establish a company, but it is recommendable to personally purchase it. On the other side, whether the final destination is to create a business involving properties, or whether the investment value is worth a considerable amount, it might be recommendable to establish a company or find another way to invest. 

What are the expenses to be carried out with the purchase?

The expenses to be carried out while purchasing a property are the same either for national or foreigner buyers, which are the 12% (it can reach the 14% in case of buying a directly from the constructor) of the final cost.

How do I prepare and how much does the “mortis causa” transfer cost?

Applicable tax will be the same as the one existing at the owner’s death (for young buyers it might not be a problem)

Anyway, inheritance tax on spanish properties must be paid in Spain, even if the inheritor pays his tax in a different country. Nowadays, inheritance tax for those not residing in Spain is quite high (worst case scenario can be up to 30% of the property value). Therefore, they cannot take advantage of discounts or deductions applicable for Autonomous Communities, given the fact that it is Spain that indicates the ways of complying with the tax system. 

Which are the steps following the decision of buying a property in Spain?

The best procedure to avoid delays and complications whilst concluding a purchase of a property is to hire a lawyer, sign powers of attorney and open a spanish bank account while visiting potential properties to buy.

What?! Do I have to pay the deposit costs directly to the seller?

Si. This is the standard procedure in Spain. Almost in no other countries it is required to paid the deposit costs to the seller (by Notaries or Depositaries), and explaining this practise to the buyer sometimes is complicated… In some cases, when there is a concrete risk for the buyer to lose the deposit costs (for instance when the seller is an insolvent company) or when the buyer specifically refuses to pay the deposit costs to the seller, there are several solutions that can be found in order to not end the operation. Every case is different and these solutions will vary according to the parts of the contract and, in general, according to the economic transaction. 

Am I eligible to obtain the residence in case I purchase a real estate property worth more than  500.000€?

Yes. By investing a minimum of 500.000€ in spanish real estate properties, foreigners can obtain a residence visa for investors in the spanish consulate of the country where their legal domicile is. Afterwards, they can obtain a permit of residence for investors. The colloquial term “Golden Visa” it is generally used to both documents: the residence visa and the following permit of residence. 

Is there any special requirement to obtain the residence by investing in real estate properties?

The property must be free of charge and encumbrances for the minimum investment of 500.000€, the remaining value can be not free of charge. 

Can it be multiples properties or for example 2 houses worth 250.000€ each?

Yes. It can be any real estate property and it can be one or multiple assets, as long as the investment is worth 500.000€ or more. 

Does the 500.000€ investment have to be per applicant or per family?

The applicant must have invested 500.000€ or more in one or multiple properties, that will have to be registered with his/her name. It means that the 500.000€ investment has to be per person and not per family. However, the applicant can request a visa and the following permit of residence for his spouse and underages sons, eligible for the same regime as per the investor. With the exception of the investment, the investor’s family must comply with the same requirements established for the applicant. 

Can I legally work in Spain with a permit of residence for investor?

The initial visa does not allow to work in Spain. Only the following permit of residence allows to work in Spain. 

Which are the main differences between the Non Lucrative Residence and the Residence for investor?

The Non Lucrative Residence on general regime compels the applicant to remain within the spanish territory for at least six months per each year of the permit validity. The sanction for not complying with this mandatory requirement is the extinction of the permit. This means that the applicant must become a fiscal resident in Spain in order to renew the permit of residence.

Neither the visa nor the permit of residence establish a minimum period of residency in Spain for the investor, allowing him to be absent and leave the spanish territory for more than 183 years. By doing so, it will not become a fiscal resident in Spain.

The Non Lucrative permit of residence does not allow to work, while the permit of residence for investors allows it. (not the visa though)

Finally, the proceeding to obtain the visa and the permit of residence for investors is easier, given the fact that the law has established shorter resolution deadlines. 

How can I apply for the residence? Will I be allowed to renew it?

Initially, any applicant has to apply for this regime by requesting the visa for investors at the spanish consulate of his/her country of origin.

This visa is valid for one year and and allows to travel and entry Spain as much as wanted.

Once the investor and his family has entered Spain with this visa, he/she can apply for a permit of residence for investors. This step is facultative and not mandatory.

This permit substitutes the visa and it is valid for two years. The visa can be only renewed at the spanish consulate, while the permit of residence has to be renewed in Spain, every two years.

The essential requirement to satisfy in order to renew either the visa or the permit of residence is to maintain the initial investment or to conclude a new investment worth 500.000€ or more. 

Is the “Golden Visa” applicable to every nationality?

Yes, this law does not make any distinction between nationalities. However, according to the law system, legal interpretations of each country or consular practices, it might be harder to obtain the initial visa for investors for the nationals of some countries.

Will I someday be eligible to obtain the long durational residence (previously known as “permanent residence”) and the spanish citizenship?

Yes, in case the titular of a permit of residence for investors effectively resides within Spain during a period of 5 consecutive years (it is not mandatory to do it), he/she will be eligible to apply for a long durational residence. It will be required to be kept up with fiscal obligations in Spain. After 10 years of legal residence in Spain (this is the general rule), the applicant can apply for the spanish citizenship.

Can I rent my property to tourists per day or weeks?

This will depend according to the Municipality and Community regulation.

Source; http://www.apigirona.com/spa/preguntas_extranjeros.htm