How much do I need to invest in Spain to qualify for citizenship?

Thinking of moving to Spain from the US? Perhaps you’d like to set up a business there or plan retirement. 

Whatever the case, you might explore obtaining Spanish citizenship through property investment. But is acquiring citizenship feasible through such an investment?

Can I get citizenship in Spain if I buy a house?

It is not possible to obtain Spanish citizenship only through investment.

One possible way to become a Spanish citizen is by naturalization: move to the country, obtain permanent residence after a few years, and only then apply for citizenship.

In April 2024, Spain decided to eliminate the Golden Visa program. However, even before its elimination, the program did not grant citizenship but offered residency to those who met all the requirements.

How much money do I need to invest in Spain to get residency?

Since the Spanish government decided to end the investor scheme for real estate worth over 500,000 EUR, one must now consider an initial investment of at least 2 million euros in Spanish public debt securities or 1 million euros in stocks or shares of Spanish companies.

What are the requirements to get residency for investing in Spain?

Besides completing the National Visa application form, having a valid passport, and providing a passport-sized photo, you'll need to provide documents verifying your investment:

• Investment in unquoted stocks and shares: A declaration of investment filed with the Foreign Investments Registry of the Ministry of Economic Affairs and Digital Transformation.
• Investment in quoted stocks: A certificate from a financial intermediary registered with the National Securities Market Commission or Banco de España, proving the investment.
• Investment in public debt: A certificate from a financial entity or Banco de España confirming that the applicant is the only owner of the investment for at least five years.
• Bank deposit: A bank certificate indicating that the applicant is the only owner of the investment.
• Investment in a business project: A favorable report from the relevant Economic and Commercial Office of this consular district, demonstrating the project's general interest.
• Investment through a legal entity: A favorable report from the relevant Economic and Commercial Office, confirming that the company is not based in a tax haven and that the investor holds, directly or indirectly, the majority voting rights and the power to appoint or dismiss the majority of the board members.

The documents must be legalized and translated officially into Spanish.

You’ll also need to prove you have:

• sufficient financial resources
• a criminal record check certificate
• health insurance
• proof of residence in the consular district
• payment of the visa fee

Is there an easier way to apply for residency in Spain from abroad?

Obtaining residency is generally more challenging for non-EU citizens. Consider applying for a business visa, a non-lucrative visa, or even a Digital Nomad Visa, which Spain has offered since last year.

Keep in mind that investing in property can be part of your residency strategy, though this approach no longer involves the Golden Visa Scheme. 

A tool for property investment in Spain: a mortgage

Using a mortgage to purchase property in Spain can make the process more manageable by spreading the financial burden over time, especially given the high initial investment required for residency.

The good news is that Spanish banks offer mortgage options to US residents. In such cases, Homevest can help you secure favorable terms.

Homevest allows you to request and compare offers from leading Spanish banks. It connects applicants with banks that best meet their requirements, providing a selection of competitive offers from lenders, including Banca March, Santander, Sabadell, Cajasur, UCI, and Unicaja.

Banca March is a good choice for customers with a net income of over 4,000 EUR. The bank requires a minimum purchase price of 500,000 euros to qualify for a mortgage.

Owning a property in Spain can help establish a more permanent connection to the country. It also strengthens your ties to the community and could ease your application for citizenship through naturalization after a period of residency.

Is it easy to get a mortgage in Spain as a foreigner?

Although Spain encourages foreigners to obtain financial assistance, the process is more challenging for non-EU citizens. It’s not impossible, but it typically takes much longer. 

As a rule of thumb, keep in mind that when applying for a mortgage in Spain as a non-resident, you will need:

• a 30% down payment of the property’s value for the deposit
• an additional 10-15% of the purchase price for taxes and fees
• an NIE, the tax identification number in Spain required for foreigners

Getting a mortgage is a wise investment that allows you to manage your cash flow more effectively and avoid tying up all your capital at once. 

If you’re considering obtaining financing from abroad, don’t forget to analyze the best options for your profile. With the right help, your process could be much easier than you think. A financial advisor can help you better understand the Spanish financial landscape, while a digital service like Homevest can assist you in securing financing that best aligns with your long-term goals. 

Sources used and checked in April 2024:

1. The end of the Golden Visa scheme in Spain
2. Spain Investor Visa

We recommend obtaining professional or specialist advice before taking or refraining from any action based on the content in this article. The information in this article does not constitute legal, tax, or other professional advice from Homevest Limited. Prior results do not guarantee a similar outcome. We make no representations, warranties, or guarantees, whether express or implied, that the content in this article is accurate, complete, or up to date.