16 Ago Spanish Residency Authorisation for Investors

In September 28th 2013 was published in the Official Gazette a special Law tailored for the internationalization of the companies, as well as to support the entrepreneurs.

In this regard, particular measures have been enacted for the purposes of attracting foreign investors. In particular, a Residency Authorization will be granted to them, when complying with any of the below conditions:

• Investment of at least EUR 2,000,000 in Spanish public debt or
• Investment amounting to at least EUR 1,000,000 in shares or participations of Spanish companies, regardless of being traded in the stock market, or
• Acquisition of real estate properties valued from EUR 500,000 onwards; or
• Business investments involving new employments within the Spanish territory or R&D relevant developments.

One of the key issues included in this new law resides in granting said Authorization to investors structuring the investment acquisition through a company, insofar it is not located in a tax haven country and the foreign applicant owns the majority of the voting rights, as well as he/she has the right to appoint or remove the company board of directors.

Since July 30th 2015, the Investors may directly request the Authorization without the prior request of the entrance Visa. Said change was made taking into account the Investors’ needs, as most of the Investors personally come to Spain to implement the investment, and according to the previous regulation, needed to go back to their countries only to request the corresponding Visa. That’s the main reason why, nowadays, as long as the Investor is legally in Spain, he/she could directly request the Authorization avoiding the previous request of the Visa.

Said Authorization allowing working and living in Spain is granted initially for two years but could be renewed for 5 years periods, as long as the Investor keeps the investments.

Therefore, Spain, mirroring other EU countries has implemented a very attractive policy in order to enhance foreign investors to purchase Spanish real estate. This legal measure mixed with the reduced market price of the Spanish properties, as well as the healthy standards of living in Spain is expected to foster the attraction of capitals and investments into the Spanish territory.