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Golden Visa in Spain: Investment in financial assets

07/03/2023 GDGlobalMobility

Foreign investors who make a significant capital investment can apply for a visa/residence permit for investors, which grants the holder and family members the right to reside and work in Spain.

To apply for this permit, in addition to fulfilling certain requirements (which we detail here: Obtaining the Golden Visa in Spain ), the investor must demonstrate that they have maintained the investment at a value equal to or greater than the minimum amount required:

Investment in real estate: 500,000 euros after charges and encumbrances distributed in one or more properties.
Investment in a business project: there is no minimum amount.
Investment in financial assets: between 1 and 2 million euros.

As we can see, there are several investment scenarios that lead to the right to apply for a residence permit for investors. This post is dedicated to the third scenario: investment in financial assets.

Investment in financial assets in order to obtain the Golden Visa in Spain

Before applying for a visa/residence permit for investors, the person concerned must make one of the following investments:

1 million euros in bank deposits in Spanish financial institutions.
2 million euros in Spanish public debt.
1 million euros in shares or equity in Spanish capital companies with a real business activity.
1 million euros in investment funds, closed-end investment funds or venture capital funds incorporated in Spain.

As we explain in this other post (Types of permits for the Golden Visa), there are two different types of permits that grant the holder the right to reside and work in Spain: the residence visa for investors and the residence permit. The party concerned must request one or the other depending on the situation in which they find themselves.

Based on the fact that there are two types of permits, the requirements to be fulfilled in order to obtain one permit or the other vary according to each situation.

Visa: ways to prove investment in financial assets

In order to obtain a residence visa for investors, the concerned party must prove that they have made an investment of the minimum amount required, in a period not exceeding one year from the submission of the application.

In the case of investment in a bank deposit, a certificate from the financial institution must be submitted stating that the applicant is the sole holder of the bank deposit.
In the case of investment in unlisted shares or shareholdings, a copy of the investment declaration made in the Foreign Investment Registry of the Ministry of Economy and Competitiveness must be submitted.
In the case of investment in listed shares, a certificate from the financial intermediary must be submitted, duly registered with the National Securities Market Commission or the Bank of Spain.
If you choose to invest in public debt, you must submit a certificate from the financial institution or the Bank of Spain stating that the applicant is the sole holder of the investment for a period equal to or greater than five years.
In the case of investment in investment funds, closed-end investment funds or venture capital funds incorporated in Spain, a certificate must be submitted from the fund management company incorporated in Spain, duly registered with the National Securities Market Commission, stating that the concerned party has made an investment of at least one million euros in a fund or funds under its management.

Residence permit for investors: ways to provide proof of the investment

For the purpose of obtaining a residence permit for investors, if the applicant for a residence permit for investment in financial assets holds a valid residence visa for investors or is within 90 calendar days of the expiration of the visa, they must prove, in addition to compliance with the general requirements for stay or residence, the following particular requirements:

In the case of an investment in a bank deposit, a certificate from the financial institution must be submitted verifying that the investor has maintained, or extended, their deposit since the date of obtaining the residence visa for investors.
In the case of unlisted shares or shareholdings, a notarial certificate must be submitted showing that the investor has maintained ownership of the unlisted shares or shareholdings during the previous reference period, which empowered them to obtain an investor visa. This certificate must be dated within the 30 days prior to the submission of the application.
In the case of investment in listed shares, a certificate from a financial institution must be submitted, stating that the concerned party has maintained, on average, at least one million euros invested in shares since the date of obtaining the residence visa for investors.
In the case of investment in public debt securities, a certificate must be submitted from a financial institution or the Bank of Spain verifying the maintenance, or extension, from the date of obtaining the residence visa for investors, of the number of public debt securities that the investor acquired at the time of the initial investment.
In the case of investment in investment funds, closed-end investment funds or venture capital funds incorporated in Spain, a certificate must be submitted from the fund management company incorporated in Spain, duly registered with the National Securities Market Commission, stating that the interested party has maintained, since the date of obtaining the residence visa for investors, at least on average, one million euros invested in a fund or funds under its management.

In all cases, the certificate must be dated within the 30 days prior to the submission of the application.

In addition, the party concerned must also comply with obligations arising from tax and social security matters.

The investor can also apply for a residence permit for investors while legally in Spain, even if they do not hold a residence visa for investors: in this case, the investor must comply with the general requirements for the stay or residence and, in addition, prove the significant investment of capital in financial assets made.