Gold visa in Spain: a mine for foreign investors
The economic crisis can bring great opportunities for Mexicans who have capital to invest and obtain a Gold Visa, as it is called the residence permit in Spain that is obtained by purchasing a property of 500,000 euros or more. Mari Paz Cotarelo, an expert in labor and commercial law, advises companies and is a founding member of Foro Norte.
The Gold Visa, as it is known to the visa that is obtained by means of an investment of 500,000 euros or more in the real estate sector, opens the door of Spain to citizens of different countries and their families.
Mari Paz Cotarelo, an expert in labor and commercial law, as well as a business consultant, knows this reality very well. In Foro Norte, a company of which she is a founding member, she has successfully processed residence permits for investors and their families from countries such as China, Russia, the United States, Venezuela, Argentina and El Salvador.
Approved in September 2013, the Law for the Support of Entrepreneurs and their Internationalization incorporated these visas to reactivate the real estate sector in Spain after the debacle suffered by the sector after the crisis of 2008. It is known as the Gold Visa or Gold Visa, but it is called the Investor's Visa.
"This investor's residence permit will continue to be one of the best ways to invest in Spain and have a 'visa' that not only allows you to reside legally in Spain, but also opens the doors, for the investor and his or her family, to the European Union and the European Economic Area", says Cotarelo.
It is sufficient to be of legal age, to have no criminal record in Spain or in the countries of previous residence, not to be listed as "unsuitable" in the territorial space of countries with which Spain has signed agreements, and to have health insurance with an insurance company authorised to operate in Spain. In addition, the person concerned must have sufficient economic resources for him/her and for the persons accompanying him/her during his/her period of residence.
In order to be valid, an investment of 500,000 euros or more must be free of all charges or encumbrances; therefore, it would not be useful to acquire a property under a mortgage. The investor must have the liquidity and have this money in his assets to be able to acquire the real estate. In order to prevent money laundering and the financing of terrorism and illegal activities, the origin of the money will be investigated and the source of the capital will be requested.
The residence permit by this means is obtained for an initial period of two years, renewable for another five years with the possibility of applying for a long-term permit.
Cotarelo states that it is important to know that there is no obligation to reside in Spain during this time, which opens the door for applicants to renew their authorization without having lived in the country permanently. On the other hand, this visa allows both the holder and the other family members attached to the residence permit to work. It also allows children to attend public schools and universities.
It often happens that investors buy a house for their residence and others as an investment. However, there are those who limit themselves to investing in real estate for lease under the umbrella of companies with legal personality such as limited companies or corporations, as set out in the Law on Support for Entrepreneurs and their Internationalization. By obtaining legal residence in a country of the Schengen area, these visas allow the investor's business to be extended to the countries of the European Union.
Applicants for this visa usually invest in coastal areas, often with a guarantee to rent. Madrid and Barcelona are the other two preferred destinations for the revaluation of investments. In times of crisis it offers less risk of depreciation.
As for the economic consequences of the COVID-19, Cotarelo believes that Spain will remain a destination for investors because of its tourist attractions and quality of life, which are difficult to surpass by other countries and because of the availability of real estate to invest.
As is often the case in times of crisis, those who have money to invest can find an opportunity to increase their capital. It seems that this crisis will not be the exception, since it is expected a drop in real estate prices, which would make the time optimal for real estate investments in Spain.