Are you worried about the tax implications of the Golden Visa in Spain? More and more foreign investors interested in the Spanish Real Estate market ask Golden Partners about the tax consequences in Spain of having this beneficial residence and work permit.
Spain implemented the Golden Visa to help entrepreneurs and internationalization and still in the last year for which data is obtained, 2023, it shows that it has been a success: 3,273 Golden Visas were granted in Spain, triple that of 2021, as reported by the Spanish Ministry of Housing.
The Spain Golden Visa is the best opportunity to transfer your residence to this country, especially if you are interested in investing in property and if you want both you and your spouse and children to also benefit from the opportunity to have the Spain Golden Visa. gold.
In this post we tell you all the tax implications of the Golden Visa in Spain, and solve you other doubts, i.e., if you can make the investment through a company or the tax implications for your family members who also could benefit from the Golden Visa.
Contact our tax lawyers.
What are the tax implications once I have the Spanish Golden Visa?
The Golden Visa in Spain itself does not oblige you to pay any taxes as a natural person. However, you could acquire the status of tax resident in Spain if you spend more than a certain number of days a year in the country (and the rules of the Double Tax Treaty between your country of origin and Spain are met).
This will mean that you will be taxed as a tax resident in Spain, although there is a special tax regime for impatriates (Beckham Law) that could prevent you from paying taxes for the marginal type. We explain all the tax implications of the Golden Visa in Spain:
Case 1: you do not acquire tax residence in Spain
As you only have to visit Spain once a year in order to maintain the permit, and even then staying for extended periods is not necessary, the first possibility is that you stay in Spain for less than 183 days during the calendar year and/or your main nucleus or base of your activities or economic interests are not located in Spain, directly or indirectly.
By not residing in Spain, you are not obliged to bear most of the tax obligations of residents, for example, paying IRPF, the Spanish personal income tax. However, you will be taxed as a non-resident in Spain. The declaration of non-residents will be at a tax rate between 19% and 24%, according to the type of income and country where they reside. For the calculation, the income obtained in Spain from economic activities, possession of a second residence, pensions and income from Real Estate capital are taken.
Thus, if, for example, you purchased Real Estate in Spain to obtain the Golden Visa, you must file a non-resident declaration for it whether you rent it or have it pending rent. The filing deadlines for non-resident returns are different from those for tax residents, so expert tax lawyers are recommended to help you with them.
Case 2: you do acquire tax residence in Spain
The second possibility is that you stay in Spain for more than 183 days during the calendar year and/or your main nucleus or base of your activities or economic interests are located in Spain, directly or indirectly.
In principle, you would acquire tax residency in Spain, which could lead to you being taxed at the marginal rate on your worldwide income, whether or not it is of Spanish source.
Now, you could benefit from the special tax regime for impatriates, better known as the Beckham Law, which would significantly lower your tax rate, although compliance with all the requirements must be submitted to analysis by tax experts before making your request. The Beckham regime would also be applicable to his wife and children if granted by the Spanish Tax Authorities.
Can the investment to obtain the Golden Visa in Spain be made through a company?
Yes, you can obtain the Golden Visa in Spain through a company as long as you fulfill three requirements explained hereinafter:
- The applicant who applies for the Golden Visa needs to have the majority of the voting rights of the company.
- The applicant has to have the power to appoint or dismiss the board directed members.
- The company needs to be addressed in a country which is not considered a tax heaven country (whose list was recently updated and you can consult in the Official Gazette of the Spanish State here).
What family members can be included on the Spain Golden Visa?
The Golden Visa in Spain allows you to obtain permits for your spouse or person in an analogous relationship, as well as for minors under 18 years of age who are dependants. The Golden Visa may also be requested for those over 18 years of age who are still economically dependent on the applicant and who do not have their own family unit. If the applicant’s parents are dependent on him/her, they may also be included.
In summary, the family members that can be included in the Golden Visa are:
- Spouse or person in an analogous relationship
- Dependent minors under the age of 18
- Persons who are financially dependent on the applicant and who have not yet formed their family unit.
- Parents in a situation of dependency with the applicant.
Once the application is approved, the family members will receive the residence permit and enjoy the same benefits as the applicant (i.e., it grants you entry into the EU or Schengen area, you obtain the right to work as an entrepreneur or employee once you’ve been granted the 2-year permit, after five years it is possible to gain permanent residency and after ten years citizenship, or less if you are from a country with historical ties with Spain). It will applicable to them the same tax implications of the Golden Visa in Spain as for the applicant.
Why is a Spanish tax lawyer important to obtain the Golden Visa
As you have seen from reading this post, there are many requirements to meet in order to obtain the Golden Visa in Spain and, if it is of interest, tax residence with the special tax rate of the special tax regime for impatriates (i.e., Beckham Law). From a technical point of view, tax implications of the Golden Visa in Spain are not easy.
At Golden Partners we can offer you tax advisory services to be sure that you will correctly comply with all your tax obligations in Spain, specially those tax implications of the Golden Visa in Spain. Our lawyers are experts in Real Estate and in obtaining Golden Visa for citizens from all over the world.
Therefore, do not hesitate to contact us so we can help you with the tax implications of the Golden Visa in Spain. We serve you in English, French or Spanish.
