Legal residence in Spain: What is the Golden Visa?

Europe is one of the most desirable places in the world to live, visit, and invest. The European Union highlights its decades-long investment in the health care and education system. Having more than 500 million people, 28 countries, and 22 languages, the region truly offers a diverse cultural, economic, and political opportunities that leads to good investment opportunities. You can get your residence in Europe thanks to the Golden Visa.

Amid social and economic challenges, such as the uncertainties brought about by the Coronavirus Disease 2019 (COVID-19) pandemic, lack of headline-grabbing private technology companies, plenty of reasons to invest in Europe arise as the region recovers from the effects of the COVID-19 pandemic.

Features of Europe

Some countries in Europe targeted to resolve problems brought about by the COVID-19 pandemic. Apart from targeting to resolve immediate problems caused by the virus, governments aimed to redirect their shares in the European Union’s recovery fund to “recovery and resilience.” They will spend towards digital innovation and bolstering the region’s green energy infrastructure.

Moreover, Europe tops the “E” in ESG Criteria. Environmental, Social, and Governance or simply ESG criteria is a set of standards for companies’ operations that investors use to filter out their preferred areas for investment. In the case of Europe, the Environmental criterion considers how companies perform as protectors and advocates of the environment. On the other hand, Europe continues to develop in the “G” or Governance aspect of ESG. The region started to improve the representation of women in businesses.

While Europe lacks technology companies that are globally recognized, it makes several digital innovations. Some investors invest in computer games amid the COVID-19 pandemic as the crisis benefits the gaming sector at some level.

Investments in Europe

It is quite difficult to invest in Europe due to some effects brought about by the COVID-19 pandemic and other challenges. However, the benefits of investing in the region are clear. According to the International Monetary Fund, the European Union is a larger economic zone than the United States and Japan combined. The region has 500 million customers and a nominal Gross Domestic Product of 16.2 trillion EURO resulting in the region to have the world’s largest economy.

Europe also provides investors with access to a vast network of vendors as the European Union’s member states contain some of the world’s wealthiest nations. This created a massive market for goods and services.

Doing investments in the region is now more cost-effective and less dangerous due to the unified Euro currency. With only one currency, there are no costs associated with currency conversions, and it is easy to compare prices in various areas because they all use Euro as a currency. This now allows investors to source lower-cost materials and customers to consume lower-priced materials.

Also, doing investments in areas within the Schengen Zone is an advantage. These areas are countries that don’t actually have barriers. People may pass through highways without checkpoints. They may also board and land at several airports without immigration.

The Schengen Agreement was signed in 1985 in Schengen, Luxembourg. Various European countries inked the said document to establish mutual policy to allow free and unrestricted movement of people, while also adhering to common rules for controlling external borders combating criminality by bolstering the common judicial and police cooperation. People in the Schengen Area or Zone do not need a Visa to declare their intentions and they can stay there as long as they want.

Why is it a good idea to invest in Spain?

Spain attracts tons of visitors every year with its amazing natural resources, culture, and history. The Spain Residency by Investment Program also known as Golden Visa is the most expedient way to get residency status in this vibrant country for those who choose to do so. Foreign investors who desire to live in Spain as a resident can apply for this program. By investing at least € 500.000 in real estate, it speeds up the process of acquiring a resident visa.

The Spanish government has made a large number of visas available to anyone who wants to make a major, qualified investment in the nation in order to strengthen the economy through foreign direct investment. Individuals and their immediate family members can become permanent residents of Spain in less than a month under this scheme.

A foreign individual must invest in a real estate project, a business project, firm shares or bank deposit, or government bonds as part of the Spain Residence by Investment Program.

Applicants must meet one of the following investment requirements in the country:

  • Real estate purchases with a minimum value of EUR 500,000 are eligible (one or several properties)
  • The development of a commercial initiative in Spain that has been designated as being of “general interest.”
  • Company shares or bank deposits in Spanish financial institutions with a minimum value of EUR 1 million
  • A minimum investment of EUR 2 million in government bonds
  • As part of the application procedure, documentation of the investment must be supplied

Applications to the program must be submitted on the approved forms, together with the required fees and supporting papers. Residence permits are normally awarded after a 20-day evaluation process and have a two-year initial term, extendable for five years on request if the applicant maintains a minimum investment in Spain.

There are two steps to the application process:

  1. Candidates apply for a Spanish residency visa in their home country, which permits them to live and work in Spain for a year.
  2. Applicants apply for a Spanish residency permit in the second phase. If they arrived in Spain on a regular tourist visa, they can apply for a residence permit without going through the first step.

Europe, particularly Spain, is definitely a place to start your investments. The region offers an incredible background and resources for your investments.