Residency in Spain and Portugal Through Investment, A Golden Gateway to Europe without Relocation

Intergentium Asia is Committed to Educate and
Help Malaysians Access Europe Legally Through the Golden Visa Programme

The Golden Visa Programme launched by the Spanish and Portuguese Authorities is a fast track for foreign investors from non-EU countries to obtain a fully valid residency permit in Europe. Aimed at attracting foreign investment into Spain and Portugal, the respective programmes are one of the most successful residency programmes in the world now. The extremely reduced minimum stay conditions (no minimum stay for Spain, 7 days a year only in Portugal), and simple and clear legal requirements tell part of the story.

When asked to elaborate, Antonio Vinal, partner of a Spanish law firm named AVCO Legal shared that under the Golden Visa programme non-EU citizens simply need to carry out one of the investments set out in the law to qualify to obtain a residency permit in Spain or Portugal. This residency permit will allow the investor and his family members to enter, live and work in Spain or Portugal and to travel freely within the vast majority of European countries (Schengen space). The programmes offered by Spain or Portugal may also lead to citizenship of the country, which means the freedom to live and work anywhere within the European Union. The European Union citizenship is currently one of the most attractive and appealing citizenship for global citizens.

For Spain, the law has considered three conditions which can render an investor eligible for the visa (meeting one of the following requirements is enough to qualify the applicant):

1.- Buying of real estate with a minimum value of € 500,000 (the first €500,000 must be free of liens);

2.- Investing € 2 million in Spanish bonds; € 1 million in shares of Spanish companies; € 1 million in investment funds or venture capital funds; or deposit € 1 million in a bank account;

3.- Undertaking a business project of general interest to be executed in Spain.

Successful applicants will be given a 1-year Golden Visa that can then be renewed into a temporary residence permit that lasts for two years. This permit can be renewed for up to five years as long as the applicant maintains the property investment. Applicants can later apply for permanent residency after five years of effective residency with some allowance periods.

Applicants that live in Spain for ten years in a row as residents can then apply for full citizenship.

The current appetite for Malaysian investors has grown over the years to include Thailand, Japanese, Australia and UK properties. The law firm encourages investments in Spain and Portugal partly because, due to the financial crisis there is a huge discount on property prices and opportunities at prices that would not have been possible years ago. Prime assets are being offered in the market which would not have been available years ago. Prices have dropped by 30%-45% during the crisis, Euribor [the rate of interest at which large European banks lend each other Euros] is still negative, the Euro has depreciated in the past months and banks are lending at very favourable rates.

“If you’re looking for bargains, and at the same time, if you’re looking to develop property, hold the property for the long run, and obtain good returns on your investment later on, now would be the time to do so. A great example is the joint venture between Malaysian AmCorp Properties and Grosvenor Europe Investments to buy Spanish real estate” Vinal advised.

Major real estate consultants believe 2018 will still continue to be a good year for Spain, although the prices for real estate have been steadily increasing. Sales in Spain increased by 14.6% in 2017, for a total of 464,423 homes, the highest figure since the crisis in 2008. Prime developments are being purchased by avid buyers before they go on sale. A private launch of the luxury Canalejas project in Madrid, saw sales of 50% before the official campaign begun.

The visa also allows its holders to travel freely in the Schengen area. This area takes its name from the Schengen Convention, which presently includes the following members:

Austria, Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, the Netherlands, Norway, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden and Switzerland. An added benefit is that holders of the golden visa can stay up to 90 days in every 180 in any country of the Schengen area.

The Benefits of the Spanish Golden Visa:

The Spanish property market is recovering well and continues to improve each day;
High rental yields in CBD offer the potential for regular income from investments;
The Spanish economy is performing well;
Speedy issuance of the Golden Visa;
A Residency Permit allows applicants to work in Spain;
Investors are able to purchase Spanish property either directly or indirectly;
Family reunification is possible;
Married couples can invest the minimum together thanks to the changes in 2015 (one applicant, the other wold be eligible for reunification);
Unmarried cohabiting couples and same-sex couples can also apply together under the Spanish “domestic partnership” Civil Registry;
Spain has excellent schools;
Excellent health service;
Great climate and environment.

Who is applying for the Spanish Golden Visa?

The countries with the largest amount of successful applicants through the real estate investment option are: China, Russia, Ukraine, Egypt, Venezuela, Saudi Arabia, USA, Turkey and Iran.