Residency by investment in Spain

Video transcript

1. Why is Spain an attractive place to invest?

Spain is a very attractive place to invest. It has population of 45 million inhabitants, and it is in Europe. Weather is mainly and predominantly Mediterranean. Spain capital is Madrid, in the centre of Spain. Its official language is Spanish, and time zone is CET. And the currency, it is euro. But most importantly, and answering your question, Spain is one of the world’s largest economies, and Europe’s 4th. Ranks second in the Henley Real Estate Index, that measures different criteria like quality of life, reputation, sale-ability of the real estate amongst others. Also, it is the 8th best country in the world to invest (2022 Kearney Foreign Direct Investment Index), and finally, 7th healthcare system in the world according to the World Health Organization and has top class education and universities. Obviously it is very well connected from either Madrid, Barcelona, or also the south of Spain. And if we are talking about Southeast Asia, it is between 12 to 14 hours direct flights from the main hubs, Philippines, Singapore, Hong Kong, or Beijing.

2. What are the main benefits of getting residency by investment in Spain?

Accessibility to what? Accessibility to investment diversification. In Spain, you can invest in real estate, but also you can invest in investment funds, you have accessibility to a very strong banking system with private banks and retail banks, of course. You have a very high-level education, public, but especially private in Madrid and in Barcelona. For example, top 10 financial time rankings universities for master's, degrees and so on. A very high level of healthcare, public, but also private, normally in Madrid and in Barcelona. And finally, lifestyle in one of the biggest EU economies. So, at the end of the day, having the possibility to live in Barcelona or live in the south of Spain or live in the Balearic Islands, it is absolutely fantastic. Then also we have optionality. Optionality to what? Optionality to the possibility of obtaining permanent residency and eventually Spanish citizenship provided certain conditions are met and obviously a European family and business hub. Just to sum it up and to go one level lower, Spain is a very attractive place to live with a very positive attitude towards migration. Thanks to residence by investment, having all their residence by investment permit in Spain, you can leave and work anywhere in Spain and travel freely throughout the Schengen area and Andorra. And as we said before, you can apply for citizenship provided certain conditions are met, as well as permanent residency provided certain conditions are met.

3. In a nutshell, how does the process work?

Accessibility to what? Accessibility to investment diversification. In Spain, you can invest in real estate, but also you can invest in investment funds, you have accessibility to a very strong banking system with private banks and retail banks, of course. You have a very high-level education, public, but especially private in Madrid and in Barcelona. For example, top 10 financial time rankings universities for master's, degrees and so on. A very high level of healthcare, public, but also private, normally in Madrid and in Barcelona. And finally, lifestyle in one of the biggest EU economies. So, at the end of the day, having the possibility to live in Barcelona or live in the south of Spain or live in the Balearic Islands, it is absolutely fantastic. Then also we have optionality. Optionality to what? Optionality to the possibility of obtaining permanent residency and eventually Spanish citizenship provided certain conditions are met and obviously a European family and business hub. Just to sum it up and to go one level lower, Spain is a very attractive place to live with a very positive attitude towards migration. Thanks to residence by investment, having all their residence by investment permit in Spain, you can leave and work anywhere in Spain and travel freely throughout the Schengen area and Andorra. And as we said before, you can apply for citizenship provided certain conditions are met, as well as permanent residency provided certain conditions are met.

4. Which are the main options for investment?

Main options for investment that qualify for residency in Spain are mainly three. The first, it is to invest a minimum of half a million euros (EUR500,000) in real estate, which can be one or several properties. So, one property of EUR500,000 or two properties of EUR250,000 for example. Investment needs to be made “fresh” so there is no possibility to obtain a mortgage on the property to finance those EUR500,000. Otherwise, applicants can make 1-million-euro investment in, for example, Spanish investment funds, share portfolios or bank deposits in Spanish financial institutions. Finally, applicants can invest 2 million euros in government bonds. There are certain additional fees, like EUR75 euros government processing fee per applicant. And then at the renewal stage, 15 euros per each resident card. Lastly, but also very, very important is that the investments need to be made before the applicant applies for residency in Spain. Once the investment has been made, we're able to compile their file and submit it to the Spanish Government.

5. Which investment route do clients normally take? Which one would you say is the most attractive?

As we have different options to invest, I would say that the most sought-after investment was real estate for various reasons. It is a good investment in itself, it is a good diversification tool, giving rental yields. There are great investment opportunities in Madrid, in Barcelona, or in the south of Spain. You also have the Balearic Islands and the Canary Islands. Investing in real estate in those areas and islands is always a good idea or almost always a good idea. But certainly, after the pandemic, there is a more push of applicants going for the investment in Spanish investment funds, share portfolios or bank deposits. Client complexity is increasing, and they want to diversify their financial portfolios. And one way of doing that it is by investing 1 million euros in a Spanish fund in Spain and qualify for the golden visa. And then at the later stage, buy a piece of real estate. Of course, these option is not for everyone. There are certain clients that they like this because they are very used to these types of investments. There are others more “traditional” that would go for the real estate route – but that is the benefit of the Spanish golden visa - that you cannot pinpoint, sometimes, which the most attractive option, because it depends on the client itself. Right now, there are great real estate investment opportunities in Madrid and Barcelona and the surrounding areas of Barcelona, for example. Also, in the south of Spain. But we have some clients that they are more complex and do not want to buy real estate without looking at it. So, they prefer to invest 1 million euros in a bank deposit or in investment fund that will give a small yield, perhaps, but the accessibility to investment diversification and a residence permit in Spain.

6. Is there a path to Spanish Citizenship?

As we have different options to invest, I would say that the most sought-after investment was real estate for various reasons. It is a good investment in itself, it is a good diversification tool, giving rental yields. There are great investment opportunities in Madrid, in Barcelona, or in the south of Spain. You also have the Balearic Islands and the Canary Islands. Investing in real estate in those areas and islands is always a good idea or almost always a good idea. But certainly, after the pandemic, there is a more push of applicants going for the investment in Spanish investment funds, share portfolios or bank deposits. Client complexity is increasing, and they want to diversify their financial portfolios. And one way of doing that it is by investing 1 million euros in a Spanish fund in Spain and qualify for the golden visa. And then at the later stage, buy a piece of real estate. Of course, these option is not for everyone. There are certain clients that they like this because they are very used to these types of investments. There are others more “traditional” that would go for the real estate route – but that is the benefit of the Spanish golden visa - that you cannot pinpoint, sometimes, which the most attractive option, because it depends on the client itself. Right now, there are great real estate investment opportunities in Madrid and Barcelona and the surrounding areas of Barcelona, for example. Also, in the south of Spain. But we have some clients that they are more complex and do not want to buy real estate without looking at it. So, they prefer to invest 1 million euros in a bank deposit or in investment fund that will give a small yield, perhaps, but the accessibility to investment diversification and a residence permit in Spain.