Spanish residence Card for foreing Investors

Last September the 19th 2013, Spanish Government approved the Law for supporting entrepreneurs and their internationalization, which is, at present, pending of being published in the Official Bulletin (BOE).

We would like to provide you with some notes regarding the main terms of this new Law, and also about its importance for foreign investors in Spanish businesses, either purchasing real estate properties or developing important corporate projects.

The aim of this Law is to improve the conditions for the growing and reactivation of Spanish economy and also to help and open it to international markets. This Law establishes a number of measures to improve and provide the start of corporate activities, including some tax and Social Security changes in favor of the entrepreneur, measures to help them to obtain financial support, and also helps foreign investors, entrepreneurs, investigators and highly qualified professionals to come and establish in Spain their businesses.

Considering it as a matter of a great interest for our clients, we will focus our attention in the new regulation which allows foreign investors to obtain the Spanish residence card. The new regulation distinguishes between tow different kind of residency in Spain for those foreigners that make a significant investment in Spain:

Residence visa for investments that lasts less than a year.

Residence authorization for a period of two years for those holders of residence visa interested in stay in Spain for more than a year.

¿Which is considered a “significant investment”?

There are three different situations:

1. Initial investment for a minimum of 2 millions in Spanish Public Debt or for a minimum of 1 million in shares of Spanish companies or bank deposits in Spanish banks.
2. The purchase of a real estate property in Spain with a minimum investment of 500.000,00 Euro for each investor.
3. A corporate project to be developed in Spain which must be considered of “general interest”, which implies, at least, one of the following conditions:
   • Creation of new job positions.
   • Investment with a relevant socioeconomic impact on the location the corporate activity shall be developed.
   • Relevant contribution to the scientific and/or technologic innovation.

¿How the investment must be proved?

In case of the purchase of a real estate property for a higher value of 500.000,00 Euro, the applicant must prove his/her investment on a property free of charges. Should the investment were higher, the property can be charged (by mortgage for instance) proportionally to the excess of investment.

With this purpose it will be necessary to provide the Tax Office with a certificate from the Land Registry Property with full detailed information about the property owned by the investor.

In case the purchase of the property were done but pending of being incorporated in the Land Registry when the visa is applied, it will be enough evidence the certificate issued by the same Registry with the reference to the presentation of the purchase deed plus the liquidation of the corresponding taxes attached.

We remind you that, besides of all the previously said, some general requirements are needed for obtaining either a visa or residence card:

• Not being considered in illegal situation in Spanish Territory.
• Not having criminal record in Spain or in the Country/ies of residence in the previous five years, for crimes contained in Spanish Law.
• Not being considered as “not allowed” in the countries Spain has signed this kind of agreements with.
• Having a public or private insurance policy with a company authorized by Spanish authorities.
• Having economic resources for the investor and his family during the period of the residence in Spain.
• To pay the fee for the visa management.

We will be pleased of answering any question you may have, and also to help you in the arrangement of your residence card.