golden visa property purchase

Originally launched to attract affluent overseas nationals from countries such as Russia, China and the United Emirates, the Spanish Golden Visa scheme is now a popular method for UK nationals to obtain Spanish residency. It is not however without its pitfalls!

In our latest video, Javier and I share some tips to help you avoid mistakes unfortunately made by too many.

If you are considering investing in Spanish property with a view to obtaining residency in Spain, contact us and we will ensure that your investment and residency applications are a success.

UPDATE 2023: Important updates here

1. Check your matrimonial regime!

If you are planning a Golden Visa property purchase in Spain, in joint names, check your matrimonial regime! If your regime is the separation of assets, which is the most popular regime in many countries, your investment will need to be for a minimum of 1.000.000€ (ie. double the required investment).

The correct procedure for a married couple would be for the property to be purchased in one name (ie. the main Golden Visa applicant), and the spouse/children will be included in the residency application as dependents.

2. Taxes, fees and refurbishment costs do not count!

Please note that neither purchase taxes nor fees are not considered as part of the investment for Golden Visa Property Purchase purposes.

Investing in a 400.000€ property with a view to spending 100.000€ on refurbishment, does not qualify for the Golden Visa scheme either.

3. It is possible to purchase a property with a Mortgage!

Please remember that the property purchase for Golden Visa must be mortgage-free for the first 500.000€. If however, you purchase a property for 800.000€ for example, you can request a mortgage for 300.000€.

4. Shared investments for a Golden Visa Property Purchase do not count!

The law has not regulated buying a “part” of a property, but buying one or more properties.

This means one property as a whole.

The possibility of granting an investor’s residence permit based on the acquisition of real estate properties by several individuals is not permitted. 

As an example, a group of people investing 500.000€ each in a 2.000.000€ property would not qualify for a Golden Visa investment. 

A minimum of 500.000€ must be invested by a sole investor in the purchase of one whole property or more.

5. Your property purchase for Golden Visa can generate income for you!

Provided your total investment in Spanish property is at least 500.000€, the Golden visa application process allows you to purchase as many properties as you like. A popular option is to purchase a family home (for example to the value of 400.000€) and to purchase a rental property (such as an apartment at a price of 125.000€). 

You can also purchase a rental property with a view to generating an income, without needing to reside in the property.

Remember that as a Spanish resident, you only pay 19% on income generated from rental property and many expenses can be written off against income. Whereas, as a non resident, from a non EU country, you pay 24% tax and no expenses can be reclaimed.

6. Apply whilst in Spain and receive a 2-year residence permit!

If you are already legally in Spain  (in a short stay permit or a Non Lucrative Visa permit) you can apply directly for the residence permit without having to apply previously for an investor visa. 

As soon as you have purchased the property, your residency application via the Golden Visa scheme can be submitted to the Spanish immigration office. There is no need to go via the consulate.

This is the only visa that allows an initial residency for two years.

7. The Spanish Golden Visa is retroactive!

If you are a non-EU citizen who bought a property in Spain for 500,000 euros or more, on or after the 28th of September 2013, you may qualify to apply for a Spanish Golden Visa.

In addition, if you purchased a property of lesser value,  on or after the 28th of September 2013, and plan to purchase a second property,  the total of the two purchases to the value of 500.000€ or more, you may qualify to apply for a Spanish Golden Visa.

Remember that it is the actual purchase price of the property that counts not its value. If you purchased a property in 2016 for 400.000€ and it is now considered to be worth 500.000€, maybe due to money invested on refurbishment etc, the property is only worth 400.000€ for Golden Visa application purposes.

So there you have our 7 Tips for a Golden Visa Property Purchase and successful visa application. We hope this has cleared up some of your doubts. 

Please remember to contact us with any further questions you have about this process. 

Remember, we can save you time and money and ensure your Golden Visa Property Purchase and Visa application is successful …

  • Our Golden Visa Property Purchase Package is the safest way for you to ensure your investment is a success. 
  • With our guidance, you will avoid the mistakes many people unfortunately often make.
  • Working with us, you will make the right investment to ensure a successful Golden Visa application.
  • Our services are available on the Costa del Sol and in the whole of the Malaga province.
  • Contact us for a free initial consultation to assess your own personal situation.

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