SPAIN RESIDENCY AND CITIZENSHIP BY INVESTMENT

The Spain residency by investment program provides an investor the flexibility to choose between temporary residency, permanent residency and citizenship based on the investors ability and desire to relocate to Spain.

The Spain residency visa and permit grants the freedom to live, work and study in Spain along with visa-free travel within the Schengen member states. At the end of 5 years, the investor may apply for a permanent residency and after 10 years (s)he may apply for citizenship and obtain a passport. The Spanish permanent residency provides reciprocal settlement and employment opportunities among European Union member states.The Spanish passport is an EU passport that grants freedom to move, settle, study and work anywhere in the European Union, Switzerland, Norway and Iceland making the investor a EU citizen. It also accords the holder visa-free travel to 187 countries including the US, UK and Canada. An EU passport also provides reciprocal healthcare and education benefits among European Union member states. The Spain Golden Visa initially grants a residence visa for 1 year. Within one year of receiving the residence visa, the investor must apply for a residence permit. A residence permit is granted for 2 years and can be renewed endlessly every 2 years as long as the investment is maintained and the investor visits Spain at least once in the year before renewal. No minimum stay is required, however if the investor would like to apply for permanent residency or passport, a minimum stay of 6 months every year is required.

Applicants can apply for the Spain Golden Visa by investing a minimum of €500,000 in real estate. Property rights can be held for life or sold after 5 years once permanent residency is established. The real estate can be rented out to generate an income. ActiveAvenues represents real estate investment options with guaranteed annual rental return, easy and flexible exit strategy. The program also offers other investment options; but these require a minimum investment of €1 million or higher. Please contact us to learn more about these options.

Up to 3 family generations can qualify with one application which cover: investor, spouse, children under 18, dependent children over 18 and dependent parents.

Investors are considered tax resident in Spain if they are physically present in Spain for at least 183 days in the calendar year, or if their base for business, profession or centre of economic interest is Spain, or if their spouse and dependent minor habitually reside in Spain. Tax residents are taxed on worldwide income. Non-tax residents are taxed on income sourced in Spain at a flat rate of 19%. Passive income from savings such as investment income and capital gains are considered taxable income and taxed at progressive rates of 19% to 23%. Earned income such as salaries, professional or business income, is considered ordinary taxable income and taxed at progressive rates from 19% to 48%. Spain imposes inheritance tax if heirs are resident in Spain or inherited assets are located in Spain. Inheritance tax ranges from 7% to 34%. Spain also imposes wealth tax ranging from 0.2%-2.5%. Certain autonomous regions of Spain have the authority to increase or reduce tax burden. Investors who are newly tax resident and employed in Spain may also take benefit of the regime of impatriates which allows them to be taxed as non-tax residents for a period of 5 years.