New immigration law 2014

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What does Spain have to
offer now?
New Immigration Law for investments and other activities

New Immigration Law for investments and other
activities
• The new Law aimed at supporting the entrepreneur and their business
activities that facilitate development, growth and internationalisation, and to
encourage an entrepreneurial culture and a favourable environment for
general economic activity.
• Introduces a new specific framework for qualified immigration and investors
and therefore it contributes to the international mobility of professionals and
investors to Spain, and to the attraction of foreign investment in order to
improve the competitiveness and innovation capacity of companies located
in Spain.

New Legal Framework
Fast and specialized process for visa and
residence for:
Investors
Entrepreneurs
Executive and professional staff
And scientist and researchers

General Advantages of the Law
1. Issuance of a residence visa for investors and entrepreneurs is enough to allow reside in Spain
for at least one year.
2. A fast procedure to obtain this kind of Visa: 10 days from the application at the Spanish
Consulate.
3. Foreign investors wishing to reside in Spain for more than one year, may obtain a residence
permit for investors, which is valid throughout national territory.
4. A fast procedure to obtain this Residence authorization: 20 working days from the application.
5. The family (spouse and children under 18 or older disabled children) may also apply for permits
at the same time or after the main applicant.
6. The residence allows the foreign to travel (not reside) into SCHENGEN TERRITORY.
7. There is a single authorization for both living and working in Spain.
8. The residences may be renewed even when there are absences of over six months in a year in
the case of residence visas and permits.
9. The National Employment Situation will not be considered for permits regulated under this Law.

should sit on the gridline aboveGeneral Requirements for all
Categories
 18 years old or above.
 Not considered as a illegal situation in Spain.
 No criminal records.
 Having a public or private health insurance.
 Having enough economic resources for the applicant and the member of his family for covering
living expenses. (*)
(*) Monthly amount: applicant € 2.130,04 (2013) and each members €532.51 (2013). In case of
executives and highly qualified professionals, it would be proven by their employment contract
with a company, entity or R&D program.

Investors visa and Residence
authorization : specific
requirements
Foreigners who make a significant economic investment in Spain, fulfilling the followings:
Real Estate: Invest over €500.000 in Real Estate located in Spain (total minimum investment
free of charges and encumbrances) which may consist of the purchase of several properties of
residential, tourist, rural, commercial or industrial nature, rural land, developed land, buildings
under construction, or decrepit buildings.
Public debt amount to at least 2 million €
Spanish companies shares or quotas, or deposits in Spanish banks, for a minimum 1 million €.
Business projects in Spain with relevant impact from the perspective of general interest or
scientific or technological innovation. Such projects must either:
 Created jobs in Spain
 Have an important socio-economic impact in the geographical area in
which the employment activity is to be carried out

should sit on the gridline aboveInvestors visa and Residence
authorization: process
1. Applying for an investor visa
This visa will allow the foreigner to enter and stay in Spain for a maximum period of one year.
Where to apply?
The Spanish Consulate of the applicant’s place of residence (in person or by a duly accredited
representative)
How long is the process?
The process will be resolved in maximum 10 days (except for countries where and additional
query is required)
Documentation:
• Applicant form
• Documents showing that general requirements are fulfilled (valid passport, medical certificate,
health insurance, policy records, proof of economic means…)
• Application fees
• NIE number (Foreigners Identification Number) if the applicant does not have a NIE yet, he will
have to apply for it before apply for the visa.
• Evidence of investment.

• Evidence of the investment:
Real estate goods
Certificate with information of possession and charges of the Property Registry. If at the moment
of the visa application, the property is still been registered, Certificate of the Property Registry
stating that the acquisition document has been submitted and certificate of tax payment.
Spanish public debt securities
Certificate of the financial entity or the Banco de España stating that the applicant is the only title
holder of the investment during at least 5 years.
Spanish companies’ shares
Unquoted shares: investment declaration of the Foreign Investments Registry (Ministry of
Economy and Competitiveness).
Quoted shares: certificate of the financial intermediary, stating that the applicant has made the
investment according to this rule.
Bank deposits in Spain
Certificate of the financial entity stating that the applicant is the only title holder of the bank
deposit.
Business projects in Spain considered to be of public interest reasons:
Favorable report issued by the Spanish Economic and Trade Office of the Embassy of Spain
Economic and Trade Office of the Embassy of Spain in charge of the territory where the person
submits the application

2. Applying for an investor authorization
This authorization will be valid for two years and it can be renewed for further terms of two
years, if the investment is maintained.
Where to apply?
The application is made in the Spanish Unit for Large Companies (Madrid), directly or by a duly
accredited applicant.
The process will be resolved in maximum 20 working days.
Stay requirements?
The authorization holder will not need to stay a minimum period in Spain to renew it.
Be holder of a valid residence VISA for investors
Have travelled to Spain at least once during the authorized visa period.
Long-term residence permit
The investor can choose to have continued legal and fiscal residence in Spain. In this case, after
five years, the foreigner will be able to apply for a long-term residence permit.
The minimum stay will be then 183 days per year and a maximum time out of Spain of ten
months within those five years.

Entrepreneurs and Business
Activity
Who can apply?
Foreigners who would like to develop an entrepreneur and innovative activity with special
economic interest for Spain
Where to apply?
At the Spanish Consulate.
Once all the documentation have been submitted the process will be resolved in maximum 10
working days (except countries where an additional query is required)

Entrepreneurial and Business
Activity
Entrepreneurial activity is taken to mean any innovative activity of special economic interest to
Spain that, as such has obtained the favorable report from the Central Government agency.
The assessment gives special priority and consideration to the creation of jobs in Spain.
The following will also be taken into account:
a) The professional profile of the applicant.
b) The business plan, including the product, service or market analysis and financing.
c) The added value for the Spanish economy, innovation or investment opportunities.

Entrepreneurial and Business
Activity: process
1. Applying for a visa to enter and stay in Spain
 Apply for a visa to enter and stay in Spain for a one-year period for the sole of primary purpose
of making prior arrangements for operating a business.
 For this purpose, it must be supported by a favorable report from the General Directorate of
Trade and Investments of the Spanish Economy and Competitiveness Ministry.
 There are not a minimum invest requirement amount.
2. Applying for the entrepreneurs and business activity residence
 Once the company is created, the visa holder will be able to apply for the entrepreneurs and
business activity residence at the Spanish Unit for Large Companies (Madrid) directly or by a
duly accredited applicant.
 The entrepreneur will not need to exit Spain to apply for such an application.
 This authorization will be valid for two years and it can be renewed for further terms of two
years, if the business activity is maintained.
 Once all the documents have been submitted, this process will be resolved in maximum 20
working days.

Executives and highly qualified
professionals authorizations
Who can apply?
The companies wanting to hire foreign employees can apply for this authorization (valid for the
whole of Spain) in any of the following cases:
a) Executives and highly qualified professionals of a company or group of companies that fulfill
any of the following requirements:
 An average staff of more than 250 employees in Spain
 An annual net turnover in Spain exceeding 50 million
 An equity or net assets value in Spain exceeding 43 million
 An annual average gross investment volume from abroad of a minimum of €1 million
in the three years immediately before submission of the application
 Companies with an investment stock value over 3 million.
 SMEs belonging to a Strategic Sector, which are, tentatively: information and
communications technologies, renewable energies, the environment, water and water
treatment, health sciences, bio-pharmaceuticals and bio-technology and aeronautics
and aerospace.

Executives and highly qualified
professionals authorizations
b) Executives and highly qualified professionals of a business project in Spain that represent
either:
 A significant increase or maintenance of employment within the company, the activity sector
or region where the activity is to be carried out.
 A project fostering the economic activity in the region.
 Interest reasons for the trade and investment policies in Spain.
 A significant contribution to scientific and/or technological innovation.
A favorable report from the Spanish authorities will be required.
c) Graduates and postgraduates from renowned Universities or Business Schools.
Where to apply?
The application is to be made by the company in the Spanish Unit for Large Companies
(Madrid) directly or by a duly accredited applicant.
As the other processes it will be resolver in maximum 20 working days.

Intra-corporate transfers
Who?
Companies or group of companies that would like to transfer to Spain one or more foreigners in
the framework of a labor relationship or to develop professional training.
The company may be set up in Spain or in another country.
This will be valid for the whole Spanish Territory.
Requirements:
 There must be a real business activity and company or group of companies
 The foreigner must have a Graduate Degree or minimum 3 years of work experience.
 There must exist a previous and continuous labor or professional relationship of at least 3
months with one or several companies of the group.
 Providing documents of the company in which the transfer is accredited.
Where to apply?
The application is made in the Spanish Unit for Lare Companies (Madrid), directly or by a duly
The process will be resolved in maximum 20 working days

Scientists and Researchers
authorizations
Who?
Private and public companies and other entities wanting to hire foreign employees
developing training, research, development and innovation activities. They must be, either:
 Research staff
 Scientific and technical staff: developing scientific research, development or
technological innovation activities.
 Researchers working in a research organism, in the framework of an agreement.
 Universities or business schools teachers
Where to apply?
The application is made in the Spanish Unit for Lare Companies (Madrid), directly or by a duly
The process will be resolved in maximum 20 working days

General benefit of residence
under this law
Education: Like Spanish residents, 16 years free education.
University in Spain is not total free, legal foreign people with Residence Authorization has the
same rights in Education like the Spanish citizens.
Medical: Primary assistance, or total assistance for residents who has total earnings under
100.000 €/year.
Total medical assistance and hospitals for those who pay Social Security in Spain, as a self
employee or employee.
Travel: Residence Authorizations holders can travel into Schengen Territory, not live in another
country.
Spanish nationality requirements clarification:
To apply for Spanish Nationality, the applicant needs to provide evidence of continuous resident
in Spain during 10 years.
As the Law allows foreigners to extend their Residence authorization even when there are
absences of over six months in a year, applicants may never have continued residence for 10
years to apply for the Spanish nationality.
Tax resident: if the investor didn’t lie in Spain for more than 6 months per year (or 183 days per
year) he never been considered tax resident in Spain.

Real Estate related tax and
expenses
IVA
In general terms, the acquisition of new buildings and urban land are subject to VAT at a rate of
21% (effective from 1 September 2012).
Transfers of rural lands, and used buildings are exempt from VAT. Used for this purpose means
that the building is transferred for the second or subsequent time, except when the building is
acquired for rehabilitation. Nevertheless, the option to VAT may be implemented and,
accordingly, the transfer may be subject to VAT under certain circumstances.
Letting of commercial property is always subject to 21% VAT.
ITP
A transfer tax, typically of 8%-10%, depending on the location of the real estate, is levied on
transfers not subject or exempted from VAT. The transfer of real estate qualifying as a going
concern is subject to transfer tax as opposed to VAT.
Transfers of shares in companies where at least 50% of their assets consist of property in Spain
are subject to transfer tax when, as a result of the transfer, the acquirer achieves a dominant
position, which is deemed to have happened when the acquirer’s share capital in the company
rises to more than 50%. It should be noted that the Spanish regulations in this respect have
been subject to the EU scrutiny.

expenses
IBI (Council tax)
This tax is the Spanish equivalent of the rates and is collected by local government.
The tax base is the cadastral value of the property and the rate varies from 0.405% to 1.166%
depending upon the region.
Payment period is determined by the local authority
Stamp duty
Normally, a 0.5% to 2% stamp duty arises jointly with VAT, and when some transactions related
to real estate operations are documented in a public deed, such as mortgages, new building
deeds, etc.

expenses
Property tax (Wealth tax for non-residents (Patrimonio))
This tax was eliminated as from 01/01/2008, then reintroduced in September 2011 for the years
20011 & 2012, then extended to 2013, with several important changes and other issues that are
explained in depth in the section on the Spanish Patrimonio wealth tax Description: Everyone
who owns property in Spain (residents and non-residents alike) has to pay an annual wealth tax.
This tax is collected by regional governments.
The tax is based on the net value of their assets in Spain after permitted deductions, such as
mortgages or another value deemed appropriate by the tax authorities, with a tax-free allowance
of €700,000. The tax rate works on a sliding scale with marginal rates starting at 0.2% and rising
to 2.5%.
Notary
The fees of the notary depend on each one fee rates.

expenses
Rental income tax
Income tax for non-residents who rent out their property:
If you:
1) do not reside in Spain
2) own property in Spain and
3) rent out your property.
(If you rent out your property to a Spanish company the company will deduct tax at source and pay it
to the tax authorities.
Under these circumstances a non-resident is not obliged to present the forms 210 or 215.)
Tax base: The tax base is the net rent, deductions of expenses allowed.
Tax rate: 24,75% (temporarily increased for 2012, 2013 and 2014).

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