On the occasion of the webinar organized by Destiny Real Estate, we have compiled a list of questions posed to Jordi Roca, director of GD Global Mobility.
- How is economic dependence verified? I have a 25-year-old son and he has no income of his own.
One form of verification is by transfers between bank accounts. Another way to prove it is if they reside in the same home. In the case of children who are studying in another country, the fact that they are studying must be shown along with proof of who is bearing the expenses. The most fundamental thing is to prove that the child has not civilly formed a family nucleus and that their income does not come from a profession. In short, we must always prove that there is a certain economic dependence by use of bank certificates.
- Once residence is acquired, can both the parents and the children work in Spain?
Ascendants and children over the age of 18 cannot automatically work, but after acquiring residence it is very easy to change status in order to obtain a work permit. They only need to have a job offer.
In the case of parents, the age limits of the Spanish legal system need to be taken into account and whether they are of working age and have a professional project and/or employment contract.
In the case of ascendants, the concept of family is a sign of cultural identity that we share with the Latin American countries. Economic dependence must be proven. In the case of families that have a certain economic capacity, the dependency must also be accredited or a new investment must be made in order to benefit from a Golden Visa.
- When buying a property in Spain you must pay VAT. Is VAT included in the real estate investment of €500,000 that needs to be made in order to obtain the Golden Visa?
No, VAT is not included, the same as any other notarial expense. The registry note from the Property Registry is needed as proof of the investment, indicating solely and exclusively the purchase value of the acquisition and charges that may be associated with the real estate purchase. As such, the payment of associated or related expenses is excluded from the purchase price of €500,000.
- What happens if the Golden Visa is cancelled due to a regulatory change?
If the program were cancelled, it would mean that there would be no more investors, but the law would be applied positively, so that the rights of those who continue to meet the requirements would be maintained. There is legal security and certainty in this regard.
- After two years, I would like to obtain Spanish nationality. How long does this process take?
It is true that, as a result of the pandemic, and with all the impetus it has brought to digitization, the submission of nationality applications has been greatly expedited. They are now carried out electronically, so that nationality can be obtained in a short time, in about 10 or 11 months. Before the pandemic, this process could last up to four years.
- Does the Golden Visa need to be purchased in a personal capacity or can it be purchased by a company?
From the processing point of view, there is no particular difference; it can be done either in a personal capacity or by a legal person. The only limitation is that in the case of a legal person, the investor must own more than 51% or at least 51% of the shares of the company. In this sense, a company may only have one investor who has more than 51% of the shares. Although they can be combined in the same acquisition. For example, a house worth €1,200,000 could be 40–50% acquired by a legal entity which would have an investor with more than 51% and the other percentage could be acquired by a natural or legal person. This would give rise to two investors and, therefore, two families who could benefit from the Golden Visa.
Golden Visa processing always includes global support, from the opening of a bank account in Spain to legal processing, including tax obligations derived from the acquisition.
Furthermore, when a house is acquired, a tax obligation starts that requires a foreign identification number that can be used for any type of procedure with the Public Administration. This will be the code through which any Administration can identify the foreign person.
In short, the Golden Visa offers a range of possibilities for the foreign investor. Anyone who has a Golden Visa can decide to move with their family and estate to Spain. In this regard, Spain has greatly enriched itself with foreigners who have come to settle here while offering a route to an economic project of global reach.
Get in touch if you want to know more!
