You are here: AFIENSArtículosGranting of residence in Spain for foreign investment

News

Granting of residence in Spain for foreign investment

29 May 2014

The Government will facilitate the granting of residence permits to: (i) investors with significant economic power or with general interest; (ii) entrepreneurs in an innovative activity that generates employment; (iii) highly qualified professionals; and (iv) foreigners coming to Spain in the framework of a working, professional relationship, or for reasons of professional training.

The Government will facilitate the granting of residence permits to: (i) investors with significant economic power or with general interest; (ii) entrepreneurs in an innovative activity that generates employment; (iii) highly qualified professionals; and (iv) foreigners coming to Spain in the framework of a working, professional relationship, or for reasons of professional training.

 

Since early 2012, there has been talking about the possibility of promoting the granting of residence permits in Spain to non- European citizens, through specific legislative measures that stimulate investment in the territory of Spain. The debate recovers its intensity after the approval of the Draft Bill of Support to Entrepreneurs and their Internationalization (the “Law of Entrepreneurs”) in Council of Ministers held last May 24, and in which the Government expressed its interest to facilitate and expedite the granting of residence permits to:

  • Investors with significant economic power or with general interest.
  • Entrepreneurs in an innovative activity, with special economic interest, giving priority to the creation of jobs.
  • Highly qualified professionals.
  • Foreigners coming to Spain in the framework of a work or professional relationship, or for reasons of professional training, for a period of time equal to their residency.

 

Similar measures have been implemented in other parts of the world, with the common denominator of the investment in the real-estate sector. Obviously, each country defines their requirements and conditions to grant residence to investors. As a near example, there is the “Immigrant Investor Programme and the Start-up Entrepreneur Programme” in Ireland, and the program  “Autorização de Residência Para Atividade de Investimento” in Portugal. However, these initiatives are not excusive to the European continent. Similar measures have been implemented in Malaysia, the Arab Emirates, the Bahamas, Seychelles and Mauritian Islands, among others.

In the case of Ireland, two clearly differentiated alternatives are established:

The program for the immigrant investor, in which the regulated assumptions are: (i) investment for a minimum 500,000€ in a public interest project representing a benefit in the areas of art, sports, health, culture, or education (ii) investment of a minimum accumulated amount of 1,000,000€ for a minimum period of three years; (iii) investment for a minimum of 2,000,000€ on a low yielding bond (1%) per year for a period of 5 years; and (iv) minimum investment of 1,000,000€ combining in equal parts the acquisition of properties, and the rest in the investment bond referred to on item (iii); and

The entrepreneur program, consisting of the granting of the residence to non-resident Europeans with an idea or business with high potential, and a capital of 75,000€, with the purpose of having their idea developed in Ireland. A high potential business is defined as: (i) introduces a new or innovative idea in the international markets; (ii) capable of creating 10 jobs, and take its business figure up to 1,000,000€ in the term of three to four years; (iii) led by an experience managing team; (iv) based and controlled from Ireland; and (v) with less than five years of existence.

 

In Portugal, the visa program for investment activity, also known as the golden residence permit, allows to grant the Portuguese residence to non-European citizens, developing at least one of the following activities: (i) entrepreneurial activity of at least 1,000,000€; (ii) creation of at least 10 jobs; and (iii) acquisition of properties for a value equal or higher than 500 thousand euros.

There is still a long way to go to better know the conditions in which the definitive text of the future Law of Support to Entrepreneurs and their Internationalization is to be approved. Until then, we cannot certainly affirm the conditions that will be required from non-European foreigners looking to get a residence permit in Spain, through concrete investments. However, the Government of Spain has reported that the residence might be granted after the acquisition of properties for over 500,000€, and the residence permit shall be granted for two years, renewable if certain requisites to be defined by the law are complied with. Likewise, it has been highlighted that this permit will not be equal to the work permit.

The process before Congress is expected to start soon, and thus, during the following months we shall know more clearly the scope of the measures that intend to bring foreign capital and skills into Spain.

FOLLOW US

CONTACT

Christian Louboutin replica, www.hellfirecaves.co.uk/XSAUK.html, Christian Louboutin outlet, www.hellfirecaves.co.uk/zlouboutinuk.html, Christian Louboutin sale