While in previous instalments we looked at investments in real property or Spanish companies and the minimum capital amount required for such investments to result in the granting of a one-year visa for stay in Spain, and the subsequent two-year residency authorisation and even an extension thereof for a further two years, we will now study other forms of capital investment in Spain operating to the same effect and which, basically, are:

A.- Bank Deposits.

 Such deposits must amount to at least one million euros and the law provides that they have to qualify as bank deposits and must be held with Spanish financial entities.  A Spanish entity for these purposes is one of Spanish nationality which is registered with, and authorised by, the Bank of Spain (Central Bank), whether or not its shareholders are Spanish and including Spanish subsidiaries of a non-Spanish entity. Evidence of having made such an investment needs to be provided during the process aimed at obtaining the initial stay visa or subsequent residency authorisation in the form of a “certificate” issued by the bank reflecting that the applicant is the “sole holder” of the deposit. The advantage of this kind of investment is that it is easy to make, and its disadvantage could arise from the low interest rates which financial entities are currently offering.

B.- Investment in public debt.

The minimum investment in public debt for the purposes of obtaining a visa or residency authorisation is two million euros. We consider that the words “public debt” refer to that issued by the State, the regional ‘Autonomous Communities’ or any other debt falling within the legal concept of “public debt”.

Providing evidence of these investments is also easy; specifically, a certificate issued by the intermediary financial entity or by the Bank of Spain itself.

While in the previous cases we pointed out that the investment needs to be maintained during the whole one-year period for which the visa is requested, or during the initial residency period (two more years) or a two-year extension thereof where applicable, in the case of investments in public debt the investment has to continue for five years regardless of whether the investor is only applying for the one-year visa, for the two-year residency permit or for the two-year extension of the latter.

The remaining requirements are the same as those briefly mentioned in the First and Second Instalments for other kinds of investments.

BUSINESS ACTIVITY

ENTREPRENEURS,

INNOVATION

HIGH QUALIFY PROFESSIONALS

INTRA-COMPANIES EMPLOYEES TRANSFERS

It should be finally noted that the Act does envisage other different forms of significant investments for obtaining such privileged visas (in addition to the pre-existing ‘ordinary application process’) which do not favour the concept of capital or monetary investment to boost the national economy but which can be considered significant, not in terms of the amount of money involved, but for their social relevance or other economic benefits for Spain which may not be initially measured in money or capital, such as:

1.- A stay visa may be applied for to carry out a business activity.

2.- Residency for entrepreneurs; an entrepreneurial activity shall for these purposes mean one of an innovative nature and a special economic interest for Spain as determined by the General State Administration on the basis of the creation of employment it entails, the applicant’s professional profile,  the business plan submitted and the added value to the Spanish economy, innovation or investment opportunities.

3.- Intra-company transfer of non-Spanish citizens moving as a result of a labour or professional relationship or by reason of professional training with a company or group of companies established in Spain or in another country.

The regulations are very specific in these cases and the requirements to be met for obtaining a visa or residency permit are quite strict.

 Lizarza Abogados, November 2013