Finally, on Saturday, 28 September 2013, the Entrepreneurs Act, passed by Government Law 14/2013, de 27 de Septiembre, de Apoyo a los emprendedores y su Internacionalización, establishes the requirements to obtain a Residence Permit in Spain through investment.
Although certain sectors have criticised that such measure would not be necessary because a non-lucrative residence permit would allow foreigners to obtain a residence permit in Spain by showing enough financial resources, the requirements expressed through this Act facilitate the paperwork and provide security to the potential investors on obtaining the residence.
In order to facilitate the entrance into the Spanish Territory, a new Visa will be granted to those who intend to apply for the Residence Permit through investment, such as investors, entrepreneurs, highly qualified professionals, researchers, etc.
To be able to obtain the Visa, the investor will have to prove that he or she meets certain regular requirements such as Health Insurance, a clean Criminal Records Certificate, and adequate financial resources to live in Spain during the period the Visa will be granted (at least one year).
Residence Visa for investors
Those investors who would like to obtain a residence permit in Spain will have to prove that they have made one of the following investments:
– 500,000 € investment in Real Estate made by each applicant requesting residency. Such amount can be invested in one or more properties, but no encumbrances, expenses or taxes will be taken into account to reach the amount of 500,000 €. For this purpose, a certificate of the Land Registry will be requested.
– 2,000,000 € in Spanish Debt or 1,000,000 € in a Spanish Bank Deposit or 1,000,000 € in a Spanish Company.
– A business project considered and accredited as of general interest and that will require compliance with at least one of the conditions, being employment creation, investment with an economic impact and / or significant contribution to scientific innovation and / or technological.
It will also be valid for a foreign individual to perform the investment through a legal entity (company) if it is not domiciled in a tax haven, as long as the applicant holds majority of the voting rights and may appoint or dismiss members of the Board.
It is deduced from the Act that, firstly, a 1 year stay visa must be processed, and once initiated the activity and compliance with legal requirements, application for residence permit for investors may be made. The residence permit allows residency in Spain for longer than 1 year.
It is important to highlight the need of proof demonstrating that the investment for the Visa was made in the 60 days prior to the application. Depending on the type of investment, it may be requested to present the Certificate of Investment, granted by the Ministry of Economy. In certain cases, a Notary Public Certificate may be requested. To qualify for a residence permit, the applicant must have traveled to Spain at least once during the period allowed to reside.
Entrepreneurs and business activity:
Those foreigners who wish to start a business activity can apply for a Visa to enter and stay in Spain, in order to initiate the previous process that leads to entrepreneurship.
Once the activity is initiated, properly accredited, the foreigners who have entered with this entry visa may apply for a residence visa, without having to wait until the end of the year.
Entrepreneurial activity is defined as that which is innovative in nature, with particular economic interest to Spain and which must be approved by the competent organ of the General Government Administration.
Residence Permit in Spain – General requirements
In this sense, the project will be considered if it meets one of the following conditions:
– Employment creation
– A substantial economic investment in the area where the business will be located
– A relevant contribution to scientific innovation and investigation General Requirements
It is possible for the investment to be performed through a company, unless it is domiciled in a tax haven, as long as the applicant holds majority of the voting rights and may appoint or dismiss members of the Board.
The residence will be granted for 2 years initially and may be extended for another 2 if the applicant meets the established requirements. It will be processed through the corresponding Administration and a tacit consent will operate in case there is no official response (administrative silence).
The entry conditions are foreseen in the Regulation (CE) 562/2006, of March 15, that lays down a community Code of rules for crossing the borders (Code of Schengen).
Regarding the spouse and children under 18, or over 18 that are dependant as a consequence of incapability to promote their own needs due to their health condition, it will be possible to apply for a joined visa or authorization.
At Lexland Lawyers we can help you with your procedure. Let´s talk.