Possible modification of the Golden Visa in Spain

by with No Comment ActualitySpain

The Spanish government proposes a reform to law 14/2013 regulating the Golden Visa

In recent statements, the Spanish Government has suggested a modification to Law 14/2013, dated September 27, which supports entrepreneurs and their internationalization. This law regulates, among other permits, the residence and work authorization for investors and their families, known as the Golden Visa.

Changes to the conditions

The proposed reform aims to modify the current Golden Visa program by eliminating the possibility of obtaining a residence permit through the acquisition of real estate with a minimum value of 500,000 euros free of charges and liens.

Since its approval in 2013, this law has been a significant driver for foreign investments in Spain. Although no reform project has been presented to congress yet, the intention is not to eliminate the Golden Visa program. The permits already granted will remain valid. We will have to wait to know the new conditions for renewal and other specific provisions of the reformed law.

Other investment routes to obtain the Golden Visa in Spain

If the real estate route is eliminated, investors will still be able to opt for other forms of investment to benefit from the Golden Visa program, such as:

1) Investments in financial assets

  • Deposit in a Spanish bank account (minimum of 1 million euros).
  • Shares or equity stakes in Spanish capital companies with real business activity.
  • Closed-end investment funds or venture capital funds established in Spain

2) Investments in Spanish public debt

  • The minimum required investment is 2 million euros, with a minimum term of 5 years.

3) Investment in business projects

Projects considered of general interest that meet at least one of the following conditions:

  • Job creation.
  • Investment with significant socio-economic impact in the project’s geographical area.
  • Significant contribution to scientific and/or technological innovation.

Do you want to obtain the Golden Visa in Spain?

At Expatfeliu, we are experts in the comprehensive management of the Golden Visa. Our specialized team will advise you and process your visa and/or residence and work permit for investors and their families. Contact us for more information!

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Traveling abroad can result in the suspension of unemployment benefits

by with No Comment ActualitySpainUncategorized

It is crucial for unemployment benefit recipients to understand the legal and financial implications of traveling abroad during this period. Current regulations state that any departure from the country can affect the right to receive this benefit, potentially leading to sanctions and the obligation to repay improperly received amounts.

Therefore, unemployed individuals must notify the State Public Employment Service (SEPE) of any trip abroad, even if it is short. Failure to notify can be considered a serious offense.

In addition to being considered a serious offense, according to SEPE, personal trips abroad can result in the suspension of unemployment benefits. This suspension can be temporary if the trip is short, and the beneficiary properly informs SEPE before leaving and upon returning.

If the trip exceeds 15 consecutive calendar days, the suspension of benefits becomes definitive for the period of absence from the national territory, requiring the beneficiary to re-register as a job seeker upon returning to Spain.

In specific cases, such as job searching or pursuing studies, beneficiaries can request special permits that allow the compatibility of benefits with stays abroad.

Consequences of traveling abroad while receiving unemployment benefits

SEPE may demand the repayment of all amounts received during the period the beneficiary is abroad without authorization.

In addition to the repayment of benefits, non-compliance with regulations can lead to additional administrative sanctions that vary according to the severity of the offense and the beneficiary’s recurrence.

It is essential for unemployment benefit recipients to consult with a legal advisor before planning any trip abroad to ensure compliance with all regulations and avoid sanctions.

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UNCERTAINLY LOOMS OVER THE FUTURE OF GOLDEN VISA IN SPAIN

by with No Comment ActualityGlobal MobilitySpain

The Spanish government has announced plans to take action to eliminate the granting of the so-called “Golden Visa.”

The government argues that this policy has fueled speculation and contributed to the rising cost of housing in certain areas of the country. As a result, these measures will affect investments involving the purchase of real estate properties with a minimum value of 500,000 euros.

Currently, the implementation date of these measures is unknown, as it will require modifications to Law 14/2013, of September 27, which supports entrepreneurs and their internationalization, the legislation that regulates the Golden Visa for the acquisition of real estate.

Although the implementation date of these modifications has not been detailed yet, one of the most relevant questions is what will happen with the renewal of visas that have already been issued. There are several alternative routes to obtain this investment visa, which (for now) will remain in force. These include:

• Investment of 2,000,000 euros in Spanish public debt securities.

• Investment of 1,000,000 euros in shares or equity of Spanish capital companies.

• Investment of 1,000,000 euros in investment funds.

• Investment of 1,000,000 euros in bank deposits in Spanish financial institutions.

• Participation in a business project to be carried out in Spain that is considered to be of general interest.

For all foreigners considering the possibility of obtaining this visa for the acquisition of real estate to settle in Spain, please contact us for advice.

To learn more about the requirements and benefits of the Investment Visa, do not hesitate to contact our office.

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SOCIAL SECURITY: INCREASE IN CONTRIBUTION TO MAXIMUM BASES

by with No Comment ActualitySpain

On April 12, 2024, the Information Note on the implementation of a new solidarity fee in Spain was published, in accordance with RD 322/2024 dated March 26. This fee will affect workers with higher salaries who contribute to the General Social Security Regime and the Sea Workers Regime, including self-employed workers under the latter regime.

What is the solidarity fee?

The solidarity fee is an additional contribution applied to the salary bracket that exceeds the maximum contribution base. This contribution is regulated in article 19 bis and D.T. 42.ª of the LGSS and is developed in article 72 bis of Royal Decree 2064/1995.

Contribution percentages

The fee will be applied gradually from 2025 to 2045, and the percentages vary depending on the excess of earnings over the maximum contribution base. For example, in 2025, for earnings between the maximum base and an additional 10%, the percentage is 0.92%. This percentage increases progressively to reach 7% in 2045 for earnings that exceed an additional 50% of the maximum base.

Contribution responsibilities

The distribution of the solidarity contribution between employer and employee will follow the same proportion as the distribution of the contribution rate for common contingencies (83.39% borne by the employer and 16.61% borne by the worker).

Important considerations:

  • The solidarity contribution does not affect the Special Regime for Self-Employed Workers (RETA).
  • The regulatory deadline for payment of the contribution ends on the last day of the month following that of the earnings.
  • Companies must electronically communicate to the General Treasury of Social Security the data of the affected workers and the corresponding periods and amounts. • The Labor and Social Security Inspection will monitor compliance with these obligations.
  • The General Treasury of Social Security has verification powers over this additional contribution.

Need advice on the new solidarity fee? At Expat Feliu, we can help and provide you with the necessary guidance to understand and comply with these new regulations. Contact us!

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GOLDEN VISA IN SPAIN

by with No Comment SpainUncategorized

The Golden Visa, also known as the golden visa, has emerged in recent years as a highly popular method for obtaining residency in Spain, especially among citizens not belonging to the European Union (EU). This special residence permit program is designed for those who wish to make a significant investment in Spain, offering a relatively straightforward way to settle in the country and enjoy its numerous benefits.

One of the main attractions of the Golden Visa is its simplified application process compared to other types of visas and residence permits. Unlike many other options, the Golden Visa requires fewer requirements and bureaucratic procedures, making it an attractive option for those looking to avoid complexity and delays in the application process. Additionally, the fact that only one visit to Spain per year is required to renew the visa adds an additional level of convenience and flexibility for visa holders and their families. The main requirement to obtain the Golden Visa is to make an investment in Spain, earning it the nickname “Investor Visa”.

This investment can take various forms, including the purchase of real estate, investment in shares of Spanish companies, bank deposits, or Spanish public debt. The minimum investment amount required varies depending on the type of asset chosen, providing applicants with a variety of options to suit their individual needs and preferences. In summary, the

Golden Visa in Spain represents an attractive option for those looking to settle in the country and enjoy its numerous benefits, from freedom of movement within the European Union to investment opportunities and the Mediterranean lifestyle. Its simplified application process and flexible requirements make it a popular choice among international investors looking to reside in Europe.

At ExpatFeliu, we have extensive experience in providing specialized advice and managing the visa process for foreign investors looking to establish themselves in Spain. This visa is granted not only to the main investor but also to their family members, provided that the corresponding requirements are met. Whether you are considering property purchases, investment in business projects, or financial assets in Spain, we offer the necessary guidance to apply for the Investor Visa. Contact us for more information and start your process hassle-free.

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Digital Nomad Visa: Your Guide to Remote Work in Spain

by with No Comment ActualityGlobal MobilityMobilitySpain

What is the Digital Nomad Visa?

Due to the changes society has faced and the development of new technologies, companies have been evolving in a digital realm that allows them to attract talent regardless of borders.

The Digital Nomad Visa is a type of visa or temporary residence permit that some countries have implemented to allow remote workers or digital nomads to live and work in their territory for a specified period, usually temporarily.

Who can apply for it?

The visa for international teleworkers, also known as the visa for digital nomads, is limited to teleworkers who are not part of the European Union. Therefore, within the general conditions, we need to consider:

  • The applicant for the digital nomad visa must be a teleworker from a third country (not belonging to the European Union).
  • The company with which the worker has a labor relationship must be located outside Spanish territory.

What Type of Worker Can Apply for This Visa?

Both dependent and independent workers who meet the criteria specified in the relevant regulations can apply for this visa:

  • They must be graduates or postgraduates from a reputable university or business school.
  • They should have the necessary and minimum experience of 3 years in the relevant field.
  • We can also differentiate between employees and self-employed workers:
    • Those working under a labor contract, with a minimum of 1 year of seniority with a company or group of companies. In this case, the company must have a demonstrable and continuous activity for at least one year.
    • Those working as self-employed professionals, with a minimum of 12 months of seniority.

Can I Work in Spain with This Visa?

You can work in Spanish territory depending on the employment status of the worker, as follows:

  • If you are an employee: You cannot work for a company domiciled in Spanish territory.
  • If you are self-employed: You can work for a Spanish company when the work you do is equal to or less than 20% of your total professional activity.

Can I Apply for the Digital Nomad Visa while in Spain?

Yes, you can apply for the visa from both within and outside Spain. Depending on the labor or commercial regime in which the worker falls, they may or may not work for a company established in Spanish territory.

 

While the requirements are specific in both the law and subsequent instructions that have been issued, it’s important to begin the process with experts who can review all the documentation in detail.

Are you a self-employed or employed worker who wants to experience remote work in Spain? At Expat Feliu, we provide comprehensive assistance to help you meet all the legal requirements. Contact us.

You can reach us by email at info@expatfeliu.com, or you can call us at +34 938 75 46 60.

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SPANISH NATIONALITY RIGHTS UNDER THE DEMOCRATIC MEMORY LAW

by with No Comment InternationalSpainUncategorized

The Law of Democratic Memory in Spain, commonly referred to as the ‘Law of Grandchildren,’ was officially ratified on October 21, 2022, and became effective on the day following its publication.

This legislation presents an avenue for individuals to seek Spanish nationality under the following circumstances:

  1. Those born outside of Spain to a father, mother, grandfather, or grandmother who was originally Spanish but lost or renounced Spanish nationality due to political, ideological, religious, or sexual orientation reasons, resulting in exile.
    • To substantiate the exile, a presumption exists that considers individuals who traveled outside Spain between July 18, 1936, and December 31, 1955, as exiles. For departures occurring after this date, evidence of exile is required.
  2. Children born abroad to Spanish women who lost their nationality by marrying foreigners before the enactment of the 1978 Constitution.
  3. Adult children of Spaniards whose original nationality was acknowledged based on the right of option, in line with the provisions of the current law.

It’s important to note that this new law does not impose an age limit on applicants. However, applicants have a two-year window, starting from October 21, 2022, to complete the application process, with the possibility of a one-year extension.

If you require further information or legal assistance regarding the Law of Democratic Memory, please don’t hesitate to reach out to us via email at info@expatfeliu.com or by phone at 938 75 46 60.

For additional details, please visit our websites:

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THE SUPREME COURT DELIMITS MORTGAGE CHARGES DEDUCTIBLE BY NON-RESIDENTS

by with No Comment ActualityInvestSpain

In the recent ruling 167/2013, of 13 February, the Supreme Court (SC) establishes that non-residents who own real estate located in Spain can only deduct from Wealth Tax (IP), and therefore, in the Temporary Solidarity Tax of Great Fortunes (ITSGF), the mortgages constituted for the acquisition or refurbishment of said real estate.

The Supreme Court stresses that in the case of taxpayers under real obligation, the delimitation of the taxable base of the tax is linked to the property and/or right located in Spain itself, so that the deductible debts are limited to the mortgage charges incurred to acquire or reform the property.

Consequently, if the taxpayer subsequently grants a loan secured by a mortgage on the property located in Spain (i.e. the loan is not linked to the acquisition or refurbishment), it will not be deductible, since, although the two debts are secured by the same property, the mortgage taken out to acquire or refurbish the property is a security interest, whereas a mortgage taken out subsequently and not used for the acquisition or refurbishment of the property is a personal debt secured by a mortgage on the property itself.

Therefore, non-resident taxpayers owning real estate located in Spanish territory must take this ruling into account in their investment and indebtedness strategies on real estate they own located in Spanish territory.

Expatfeliu can advise and support you in analysing the tax impact of your investment and debt strategies on your property located in Spain.

 

NEW SYSTEM FOR THE RECOGNITION OF OFFICIAL FOREIGN DEGREES

by with No Comment ActualityInternationalSpain

On 8 November 2022, Royal Decree number 889/2022 of 18 October came into force, which introduced a new “express” system of recognition and declaration of equivalence of officially valid degrees or diplomas obtained in the framework of foreign higher education systems.

Prior to this law, the procedure for recognition of foreign degrees could take up to 2 years, but now, following this reform, the public administration is obliged to issue a decision within a maximum period of 6 months from the receipt of the application (hence the name “express”).

If the homologation and equivalence procedures were initiated under the provisions of the previous Law, Royal Decree 967/2014, of 21 November, it will be possible to submit a new application as provided for in the reform, provided that you have not yet been notified of the hearing procedure in the previous file and that the new application includes a request for withdrawal of the previous procedure.

In these cases, it will not be necessary to pay the corresponding administrative fees again, provided that the previous fees have been paid correctly.

Finally, it is important to note that this Law only applies to official university degrees that correspond to studies already completed and that it only covers those professions regulated in Spain and contained in the annex of the Law itself.

If you need more information about the new “express” recognition and declaration of equivalence procedure, do not hesitate to contact us!