passports.io website
residencies.io website
Bank Accounts website
Flag Theory website
Subscribe to Flag Theory Newsletter to receive Internationalization, Business-driven Structuring Intelligence directly to your Inbox

Spain

Residency Visa for Acquisition of Real Estate (RIV)

Under the Law 14/2013, of 27 September, on support for entrepreneurs and their internationalization, individuals who make an investment in real property may be eligible for a residence visa in Spain.

You may obtain a residence visa, and afterwards a residence permit, if you invest at least €500,000 in Spanish property (one or more), provided that at least the minimum investment amount is unencumbered (mortgage free).

You may conduct the investment after your residence visa application is approved, provided that you have transferred the funds to Spain and concluded a sales and purchase agreement with guarantee of compliance prior application.

Investment may be carried out by your non-Spanish company, provided that is not incorporated in a considered tax haven. You must own, directly or indirectly, the majority of its voting rights and the right to designate or remove the majority of the members of the board of directors.

The residence visa is valid for 1 year, during this year you may apply for a temporary residence permit which will be valid for 5 years, provided that you still keep the investment. Your spouse and your unmarried dependent children may be included in the application.

To maintain your residence status, you will be required to visit Spain at least once per year.

After 5 years holding the temporary residence permit, you will be eligible for permanent residency. For residents under this scheme, no physical residence or place of abode is required to apply for a PR status.

Note that the 1-year residence visa does not count in this 5-year period.

The permanent residency will entitle you to live and work in Spain indefinitely.

After 10 years of legal residency (temporary or permanent) you may be eligible for naturalization. To become a Spanish citizen, you will be required to commit to renounce your previous nationality, have financial stability, no criminal record, attend to an interview and prove your degree of integration into Spanish society, e.g. knowledge of Spanish language, culture, values and participation in Spanish social activities.

Note that for nationals of Philippines, Andorra, Spanish-American countries, Equatorial Guinea, Portugal, as well as individuals with Jew Sephardic origin, may be eligible for citizenship after two years of legal residency.

Requirements


- Not be in Spain with irregular immigration status.
- Be over 18 years.
- Lack of criminal record in Spain and in the countries where he has resided in the last 5 years, for crimes foreseen in the Spanish legal system.
- Have public insurance or private health insurance arranged with an insurer authorized to operate in Spain.
- Sufficient financial resources for yourself and your family members during your period of residence in Spain (monthly income of €2,130, and additional €533 per dependent).
- If you have already acquired the real estate,
o Certification with continuous information of domain and loads of the Property Registry that corresponds to the property. Such certification will have to be issued within 90 days prior to the submission of the application for the residence visa.
o Document certifying investment in real estate of € 500,000 free of all charges or encumbrances. The part of the investment that exceeds the amount required may be subject to a charge or tax.
- If you have not acquired the real estate yet,
o Precontract with guarantee together with certificate of financial institution in Spain in which it is established that you have a bank deposit unavailable with the necessary amount for the acquisition, including charges and taxes.
- In case the purchase of the property is made by a legal entity, you must provide evidence that you own the majority of the rights over the company, and it is not domiciled in a tax haven according to the Spanish legislation.

Restricted Nationalities


European Economic Area

dual citizenship


Spain only recognizes dual citizenship for nationals who have acquired the Spanish nationality at birth. Naturalized citizens must renounce to their previous nationality, except those from countries with which Spain has concluded a double-nationality agreement. Currently, citizens of the following countries may become Spanish naturalized citizens, without giving up their previous nationality: Andorra, Argentina, Bolivia, Brazil, Chile, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Equatorial Guinea, Ecuador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Portugal, Puerto Rico, El Salvador, Uruguay and Venezuela.


Documents Required


  • One passport-size photo
  • Proof of income
  • Bank Statement
  • Original Bank Reference Letter (Not older than 6 month)
  • Original Police Clearance Certificate
  • Evidence of Health Insurance
  • Receipt of payment of fees
  • Title Deeds or Proof of Registration of Real Estate
  • Real estate sales and purchase agreement
  • Original or Certified copy of Birth Certificate (if applicable)
  • Original or Certified copy of Marriage Certificate (if applicable)
  • dual citizenship No
  • Family members included Yes
  • land ownership Yes
  • Physical residence required No
  • Personal visit required Yes
  • Language skills required No
  • Interview required No
  • Investment Single €500,000
  • Investment Family 4 €500,000
  • Minimum annual income €25,560
  • Time to citizenship 120
  • Time to permanent residency 60
  • Visa-free countries 174
  • Financing available No

Fees

government fees main applicant €3,000
processing fees main applicant €5,000

Country details

Spain
EUR
34
Madrid
Europe
Catalan Galician Occitan Spanish
46505963
The Kingdom of Spain is a transcontinental country, member of the European Union. It is located to the south of Western Europe as well as to the north of Africa. Its territory is organized in seventeen autonomous communities and two autonomous cities, with diverse geography and cultures. In Europe, it occupies most of the Iberian peninsula, known as peninsular Spain, and the archipelago of the Balearic Islands (in the western Mediterranean sea), and two autonomous cities (Ceuta, Melilla) and an autonomous region (Canary Islands) in Africa. The peninsular territory shares land borders with France and Andorra to the north, Portugal to the west and the British territory of Gibraltar to the south. In its African territories, it shares land and sea borders with Morocco.

It is inhabited by 46 million people. Its capital and most populated city is Madrid, with over 3.1 million inhabitants. Other important cities include Barcelona (1.6 m), Valencia (800,000) and Sevilla (700,000). Its official language is Spanish, along with four co-official regional languages, Catalan/Valencian, Basque, Galician and Aranese. Its official currency is the Euro (EUR).

Visa Free Travel

With your new passport from Spain you'll be able to access 174 countries visa free
>

Taxes

To be a tax-resident in Spain, you must spend more than 183 in the country during a calendar year or have your centre of economic activities, if it is not stated otherwise in a tax treaty.

Tax-residents are subject to Personal Income Tax on their worldwide income.

PIT is levied at progressive rates by the state and each autonomous region. Lowest combined top marginal tax rate is 43.5% in Madrid (annual income exceeding €60,000), and the highest is 48% in Catalonia (annual income exceeding €175,000.20) and Andalusia (annual income exceeding €120,000).

Savings income is taxed at progressive rates between 19% and 23%, savings income includes capital gains and investment income such as dividends and interests. Rental income is taxed at personal income tax general rates.

Non-residents are subject to Non-resident income tax at a flat rate of 24% on income from Spanish-source. If non-resident is a resident within the EEA that has concluded a tax exchange of information agreement, he or she will be subject to a reduced rate of 19%. Regarding dividends, capital gains and interests, they are subject to a 19% tax, unless tax rate is reduced under a tax treaty.

Spain has enacted extensive controlled foreign company rules, under which, income retained in a non-EU controlled foreign company may be attributable.

Municipalities levy a real property tax up to 1.3% on the cadastral value of the property. Transfer of real properties, which are not subject to V.A.T., may be taxed at 6% tax rate, although this may vary according the autonomous region.

Inheritance and gift tax ranges from 7.65% to 34%, although it may be higher in some autonomous regions.

Net worth tax is levied at progressive rates between 0.2% to 2.5%, each autonomous region sets its own minimum amount exempt and its own scale rates. Madrid does not levy net worth tax.

The V.A.T. standard rate is 21%. Certain goods and services are taxed at 10%, 4%, 0% or exempt.

Regarding corporate taxation, resident entities are subject to 25% income tax on their worldwide income. To learn more about Spanish corporate taxation, legal framework and tax treaties, visit incorporations.io/spain.

This should not be construed as tax advice. Flag Theory | Passports.IO has access to a global network of qualified attorneys and accountants who can give you the proper advice for your particular circumstances. Contact us for further information.

  • Property tax Yes
  • Transfer tax Yes
  • Inheritance tax Yes
  • Net worth tax Yes
  • CFC law Yes
  • Tax residency days 183
  • Personal income tax rate 48%
  • Capital Gains tax rate 23%
  • Investment income tax rate 23%
  • Territorial taxation No

Procedures

Flag Theory | Passports.IO and our qualified attorney in Spain, will guide you through each step of the process to ensure that it is as fast, efficient, pain free as possible.

First our lawyers will conduct a due diligence check on you to ensure that you are eligible and your application will be approved.

If required, we will provide you access to our network of real estate developers and agents in Spain, in order to find the property that best suits your needs. We will process your ordinary visa in order to come to Spain and conduct your real estate purchase/purchase undertaking.

If you wish, we will introduce you to Spanish banks in order to open an account, transfer the funds and make the investment.

We will send you the application forms, and provide assistance to complete the questionnaires, translate and legalize supporting documents.

Once you provide the application form completed and supporting documents, application must be submitted to your country residence closest embassy or consulate, or directly in the Ministry of Interior’s Immigration Department in Spain. You may choose between submit the application personally or let us do it for you.

The application should be processed in a maximum period of 20 days. After your application is approved, you may come to Spain to formalize the property purchase (if you have not purchased it yet) and start your residency permit procedures. Our lawyer in Spain, will guide you through this process.

For further information on Spanish residency by investment and detailed procedures, contact us for a free private consultation.

Flag Theory Weekly Letter

Subscribe to receive Internationalization, Business-driven Structuring Intelligence directly to your inbox. You will also get the Flag Theory Master Course, a 1-month course with valuable and actionable information that you must consider when going global.

Your privacy is important for us and we will keep your information secure. View our privacy policy

View past newsletters