GOLDEN VISA & FOREIGN INVESTMENT: What is foreign direct investment?

In general terms, an investment is the placement of capital to obtain a future profit.

The investment is direct if the person who makes it, whether a natural or legal person, places their assets in a specific company or uses them to purchase physical goods, for example, a property, while maintaining full control of their business.

On the contrary, the investment is indirect when the funds are channeled through an investment vehicle (fund or portfolio) that pools the capital of several investors and uses it to buy assets, to obtain a return; In this way, the investor has the right to receive a part of the profit, but does not have control over the allocation of his money, which is managed by an expert.

If the direct investment is made in a foreign country, it is a foreign direct investment. That is to say, it is the investment that comes from foreign investors who incorporate their capital directly in a specific business or activity within another country.

It is essential that the intervention of the lawyer in the investment process takes place from the very moment in which the decision is made to place capital in a foreign country, to guarantee the success of the investment and the satisfaction of expectation obtaining profits that the investor pursues.

Its function ranges from advice on the choice of the object to invest, be it a company or a good, the estimation of profitability, the analysis of its legal situation (due diligence), tax consequences, etc., passing through the negotiation of the investment conditions, drafting of contracts, and support throughout the term of the investment.

Foreign direct investment (FDI) refers to the placement of capital by individuals or entities from one country into a business or activity in another country. It is a form of investment where the investor maintains full control over their assets and business. FDI plays a crucial role in global economic growth and development, as it encourages the flow of capital, technology, and expertise between countries.

Foreign direct investment in Spain presents an exceptional opportunity for foreigners looking to invest and obtain the coveted Golden Visa. The Golden Visa program allows non-EU investors to obtain residency in Spain by investing in real estate, starting a business, or making a significant capital investment. This program offers various advantages, including:

Several factors make Spain an attractive destination for foreign investors seeking the Golden Visa:

Lawyers specialized in foreign direct investment and Spanish immigration law play a crucial role in ensuring a smooth and successful investment process. They provide valuable guidance and expertise throughout the Golden Visa application process, including:

Foreign direct investment and the Golden Visa process involve complex legal considerations. It is crucial for investors to have a clear understanding of the legal landscape and comply with all legal requirements. Lawyers specialized in Spanish immigration law help investors navigate the legal complexities and ensure a smooth investment process. They provide guidance on legal obligations, tax implications, and compliance with Spanish immigration regulations.

Foreign direct investment and the Golden Visa program have a significant impact on Spain’s economy and society. These investments contribute to economic growth, job creation, and infrastructure development. They also bring in valuable expertise and technology, stimulating innovation and boosting various sectors of the economy. Additionally, the Golden Visa program attracts high-net-worth individuals, fostering cultural diversity and enhancing Spain’s global standing.

In conclusion, foreign direct investment and the Golden Visa program present an excellent opportunity for foreigners looking to invest in Spain. With the guidance of specialized lawyers, investors can navigate the legal complexities and ensure a successful investment process. Spain’s economic stability, real estate opportunities, quality of life, and strategic location make it an attractive destination for foreign investors seeking the Golden Visa. By investing in Spain, foreigners can not only obtain residency but also contribute to the country’s economic growth and development.

 

Frequently asked questions (FAQs): how a foreigner can obtain a Golden Visa in Spain through investment:

 

1. What is the Golden Visa program in Spain? The Golden Visa program in Spain is a residency-by-investment program that allows non-EU citizens to obtain a residency permit by making a qualifying investment in the country. It offers a path to residency and potentially citizenship for investors and their families.
2. How can a foreigner obtain a Golden Visa in Spain? A foreigner can obtain a Golden Visa in Spain by making a qualifying investment in one of the eligible categories, such as real estate, business projects, or capital investments. The investment must meet the minimum threshold set by the Spanish government.
3. What are the requirements to qualify for a Golden Visa through investment? To qualify for a Golden Visa through investment, a foreigner must meet certain requirements, including making a qualifying investment in Spain, having a clean criminal record, having valid health insurance, and having sufficient financial means to support themselves and their family members.
4. What are the investment options available for obtaining a Golden Visa in Spain? The investment options for obtaining a Golden Visa in Spain include investing in real estate, starting a business venture, or making a capital investment in Spanish companies or funds. Each option has specific requirements and minimum investment thresholds.
5. Can I obtain a Golden Visa by investing in real estate? Yes, investing in real estate is one of the eligible options for obtaining a Golden Visa in Spain. The investment must meet the minimum threshold set by the government, and the property must be held for a minimum period. The real estate investment can be residential, commercial, or a combination of both.
6. What is the minimum investment amount required for a Golden Visa in Spain? The minimum investment amount required for a Golden Visa in Spain varies depending on the chosen investment option. For real estate investments, the minimum threshold is typically higher compared to business projects or capital investments. It is advisable to consult with a specialized lawyer or immigration expert to determine the specific investment requirement.
7. Can I invest in a business to obtain a Golden Visa? Yes, investing in a business is another option for obtaining a Golden Visa in Spain. This can be done by starting a new business venture or acquiring an existing Spanish company. The investment must meet the minimum threshold set by the government and contribute to job creation or economic development.
8. Are there specific sectors or industries where I can invest for a Golden Visa? There are no specific restrictions on the sectors or industries where you can invest for a Golden Visa in Spain. However, it is advisable to choose an investment that aligns with the country’s economic priorities and has the potential for growth and sustainability.
9. Can I invest in a Spanish company to qualify for a Golden Visa? Yes, investing in a Spanish company can qualify you for a Golden Visa in Spain. This can be done by becoming a shareholder or making a capital investment in the company. The investment must meet the minimum threshold and contribute to job creation or economic development.
10. What are the benefits of obtaining a Golden Visa through investment? Obtaining a Golden Visa through investment offers several benefits. It provides residency rights for the investor and their family, allowing them to live, work, and study in Spain. Golden Visa holders also have visa-free travel within the Schengen Area and access to public services, including healthcare and education.
11. Can I bring my family members with me under the Golden Visa program? Yes, family members of the main investor can also obtain a Golden Visa in Spain. Spouses, children under 18 years old, and dependent children over 18 years old can be included in the application. Family members enjoy the same residency rights and benefits as the main investor.
12. What are the advantages of including family members in the Golden Visa application? Including family members in the Golden Visa application allows them to benefit from the residency rights and advantages offered by the program. It provides a unified approach to family relocation, ensuring that all family members can live, work, and study in Spain.
13. How long does it take to process a Golden Visa application in Spain? The processing time for a Golden Visa application in Spain varies depending on various factors, including the complexity of the investment, the completeness of the documentation, and the workload of the immigration authorities. On average, it can take several months from the submission of the application to the issuance of the visa.
14. Can I travel freely within the Schengen Area with a Golden Visa? Yes, holders of a Golden Visa issued by Spain can travel freely within the Schengen Area. The Schengen Area comprises 26 European countries that have abolished internal border controls, allowing for seamless travel between member countries.
15. Is there a minimum stay requirement for Golden Visa holders in Spain? There is no specific minimum stay requirement for Golden Visa holders in Spain. However, it is important to maintain a physical presence in the country to comply with the residency obligations and ensure the validity of the Golden Visa.
16. Can I work or start a business in Spain with a Golden Visa? Yes, holders of a Golden Visa in Spain have the right to work and conduct business activities in the country. They can be self-employed, work for an employer, or start their own business venture. However, specific work permits or licenses may be required for certain professions or industries.
17. What are the tax implications for Golden Visa holders in Spain? Golden Visa holders in Spain are subject to the country’s tax laws and regulations. They may be liable for taxes on their worldwide income if they become tax residents in Spain. It is advisable to consult with a tax lawyer or accountant to understand the specific tax implications based on your individual circumstances.
18. Do I need to learn Spanish to qualify for a Golden Visa? There is no specific language requirement for obtaining a Golden Visa in Spain. However, learning Spanish can greatly enhance your experience of living and working in the country, as well as facilitate integration into the local community.
19. Can I apply for Spanish citizenship after obtaining a Golden Visa? Yes, it is possible to apply for Spanish citizenship after obtaining a Golden Visa. The eligibility requirements for citizenship include a minimum period of residency in Spain, proficiency in the Spanish language, and passing a citizenship examination. The specific requirements can vary, so it is advisable to consult with a lawyer or immigration expert.
20. How long do I need to hold a Golden Visa before applying for citizenship? The minimum period of residency required before applying for Spanish citizenship is typically ten years. However, this period may be reduced for individuals from certain countries or for those who fulfill specific criteria, such as being married to a Spanish citizen or being a refugee.
21. What are the documents required for a Golden Visa application? The documents required for a Golden Visa application include a valid passport, proof of investment, proof of financial means to support oneself and family members, health insurance coverage, and a clean criminal record certificate. Additional documentation may be required depending on the chosen investment option.
22. Are there any specific financial requirements for a Golden Visa application? Yes, there are financial requirements for a Golden Visa application. You must provide proof of sufficient financial means to support yourself and your family members during your stay in Spain. The specific financial requirements may vary, and it is advisable to consult with a lawyer or immigration expert to understand the exact requirements.
23. Do I need to provide proof of health insurance for a Golden Visa application? Yes, providing proof of health insurance coverage is a requirement for a Golden Visa application in Spain. It is necessary to ensure that you and your family members have access to healthcare services during your stay in the country. The insurance coverage must meet the specific requirements set by the Spanish authorities.
24. Can I invest in multiple properties to meet the investment requirement? Yes, it is possible to invest in multiple properties to meet the investment requirement for a Golden Visa in Spain. However, the total value of the properties must meet or exceed the minimum investment threshold set by the government.
25. Can I invest in a property jointly with another person for a Golden Visa? Yes, you can invest in a property jointly with another person, such as a family member or business partner, to qualify for a Golden Visa. However, both parties must contribute to the investment and meet the minimum investment threshold individually.
26. Can I take a loan to finance my investment for a Golden Visa? Yes, it is possible to take a loan to finance your investment for a Golden Visa in Spain. However, it is important to ensure that you have the means to repay the loan and meet the financial requirements set by the government for the Golden Visa application.
27. Can I invest in a property that needs renovation or construction? Yes, investing in a property that needs renovation or construction can still qualify for a Golden Visa in Spain. The investment value will be based on the purchase price and the estimated cost of the renovation or construction work.
28. Are there any restrictions on the type of real estate I can invest in for a Golden Visa? There are no specific restrictions on the type of real estate you can invest in for a Golden Visa in Spain. You can invest in residential, commercial, or industrial properties, as long as the investment meets the minimum threshold and complies with the legal requirements.
29. What are the steps involved in the Golden Visa application process? The Golden Visa application process involves several steps, including gathering the required documentation, submitting the application to the Spanish authorities, undergoing the necessary checks and verifications, and obtaining the Golden Visa once the application is approved. It is advisable to seek the assistance of a specialized lawyer to guide you through the process.
30. Can I submit the Golden Visa application on my own, or do I need a lawyer? While it is possible to submit the Golden Visa application on your own, it is highly recommended to seek the assistance of a specialized lawyer or immigration expert. They can provide valuable guidance, ensure that all the required documentation is in order, and handle any legal complexities or challenges that may arise during the application process.
31. How can a lawyer assist me in the Golden Visa application process? A lawyer specializing in Golden Visa applications can assist you in various ways. They can provide legal advice, guide you through the application process, ensure compliance with all legal requirements, help with the preparation and submission of documentation, and represent you in case of any legal issues or complications.
32. What is the role of due diligence in the Golden Visa application? Due diligence plays a crucial role in the Golden Visa application process. It involves conducting a comprehensive investigation and analysis of the chosen investment opportunity to ensure that it meets all legal requirements and is a sound investment. Lawyers can assist in conducting due diligence to minimize risks and ensure a successful application.
33. How can I ensure that my investment meets the legal requirements for a Golden Visa? To ensure that your investment meets the legal requirements for a Golden Visa, it is important to seek guidance from a specialized lawyer or immigration expert. They can assess your investment plans, verify compliance with the minimum investment threshold, and provide advice on how to structure the investment to meet the legal requirements.
34. Are there any age restrictions for applying for a Golden Visa in Spain? There are no specific age restrictions for applying for a Golden Visa in Spain. The program is open to individuals of all ages who meet the investment requirements and fulfill the other eligibility criteria.
35. Can I apply for a Golden Visa if I have a criminal record? Having a criminal record may affect your eligibility for a Golden Visa in Spain. The Spanish authorities will assess each case individually, taking into consideration the nature and severity of the offense. It is advisable to consult with a lawyer or immigration expert to understand the potential impact of a criminal record on your Golden Visa application.
36. What happens if my Golden Visa application is rejected? If your Golden Visa application is rejected, you have the option to appeal the decision or, in some cases, reapply with additional documentation or information to address the reasons for the rejection. It is advisable to seek the assistance of a specialized lawyer if your application is rejected to explore the best course of action.
37. Can I appeal a rejection of my Golden Visa application? Yes, you can appeal a rejection of your Golden Visa application. The appeal process involves submitting an appeal to the appropriate authorities, providing additional evidence or arguments to support your case, and requesting a review of the initial decision. It is advisable to seek the assistance of a specialized lawyer to guide you through the appeal process.
38. Can I extend my Golden Visa beyond the initial period? Yes, it is possible to extend your Golden Visa beyond the initial period. The Golden Visa can be renewed for additional periods, usually in increments of two years, as long as you continue to meet the residency requirements and comply with the obligations of the program.
39. Are there any annual renewal requirements for a Golden Visa? There are no specific annual renewal requirements for a Golden Visa in Spain. However, you must maintain your residency status, fulfill the residency obligations, and continue to comply with the program’s requirements to ensure the validity of your Golden Visa.
40. Can I sell my investment property after obtaining a Golden Visa? Yes, you can sell your investment property after obtaining a Golden Visa in Spain. Selling the property does not automatically revoke your Golden Visa status. However, it is important to consult with a lawyer or immigration expert to understand the potential implications and ensure compliance with any legal obligations.
41. Are there any restrictions on transferring the investment for a Golden Visa? There are no specific restrictions on transferring the investment for a Golden Visa in Spain. However, it is advisable to consult with a lawyer or immigration expert to ensure compliance with any legal requirements or restrictions that may apply to the specific investment.
42. Can I rent out my investment property and still maintain the Golden Visa? Yes, you can rent out your investment property and still maintain the Golden Visa. Renting out the property can provide additional income and help cover the costs associated with the investment. It is important to comply with the relevant tax and rental regulations in Spain.
43. What happens if I decide to withdraw my investment after obtaining a Golden Visa? If you decide to withdraw your investment after obtaining a Golden Visa, it may affect your residency status. It is important to consult with a lawyer or immigration expert to understand the potential implications and ensure compliance with any legal obligations.
44. Can I include my children who are over 18 years old in the Golden Visa application? Yes, you can include your children who are over 18 years old in the Golden Visa application. However, they must meet the eligibility criteria and provide the necessary documentation to support their inclusion in the application.
45. Do I need to provide proof of financial resources for all family members in the Golden Visa application? Yes