The health crisis will cause effects on the tax advice of the Golden Visa of Spain
After the impact of COVID-19 worldwide, the minds of many taxpayers are searching for economic migration. Given this, the Golden Visas of Spain are one of the most affordable options for obtaining a second passport.
In general, the sale of migration programs for investors is usually a quick process, since the taxpayer does not have to physically go to the host country to obtain the second passport. For European citizens, you can choose between several programs:
- The Malta Individual Investor Program: requires an outlay of approximately 1,000,000 euros.
- The Cyprus Investment Program: requires a disbursement of approximately 2,000,000 euros.
Once insured, citizens have the right to live, work and do business in any Member State. However, the health crisis has brought with it a series of modifications at the fiscal and tax level that directly affect golden visas.
First of all, it should be remembered that the Golden Visa of Spain allows investors and their dependents to reside in Spain investing at least 500,000 euros. Among the investment options, the following stand out:
- 500,000 euros in real estate.
- 2,000,000 euros in treasury bonds issued by the Spanish government.
- 1,000,000 euros in a Spanish company.
- 1,000,000 euros in investment funds.
- 1,000,000 euros in a Spanish bank deposit.
At the moment, the most popular investment for obtaining Spanish Golden Visas is still real estate. For this, the applicant has to carry out a series of processes:
- The investment can be made in person or by virtue of a power of attorney.
- Once the investment has been made, the file is complete and the application is submitted, it takes less than a month for the Spanish government to process and reject / approve the application.The applicant and their dependents must travel to Spain to present the biometric and must stay for 10 years in the country to be eligible for citizenship.
- The processing period is 20 days from the filing of the file until the issuance of the residence permit. The latter can be renewed as long as the qualified investment is maintained.
- Lastly, the holder is granted a visa to travel freely in the Schengen area for up to 90 days and the right, although not compulsory, to live, work and do business in Spain.
On the other hand, the investor must take into account that he can opt for the following benefits of the Golden Visa in Spain:
- Unlike other investment migration programs, in Spain no government donation is necessary.
- The legal and application fees for the Spanish gold visa are also considerably lower than for Malta, Portugal and, to a certain extent, Greece, all the popular gold visa jurisdictions in Europe.
- Unlike Portugal, Spain's Golden Visa is not aggressively marketed to high net worth individuals.
Finally, the fight against COVID-19 has diminished the effects of the economic crisis in Spanish territory. However, the impact the pandemic will have on the price of real estate for investors with available funds and a long-term plan of 5-10 years is still unknown. For the latter, the achievement of an agreement in the Spanish real estate market could be an opportunity.
B Law & Tax
International Tax & Legal Advisors.