All you need to know about financing in Spain for foreigners.
The second of our 3 part series with Lionsgate Capital, the leading mortgage experts in the Balearics specialised in non-resident buyers, discusses the visa options available to you so that you can enjoy your home without any 90 day stay restrictions applicable to all non-EU citizens including the UK and USA.
Which visa can you benefit from as a foreigner?
There are two options for non-EU home owners that wish to make the most of their time in Mallorca yet still retain their tax residency in their home country.
Digital Nomad Visa
Spain’s new Digital Nomad Visa (DNV, for short) offers unique tax advantages that no other Spanish visa can match. Its main advantage is precisely the wide array of tax benefits it offers its privileged holders.
The DNV has been purposely devised so successful non-EU applicants pay little to no tax in Spain.
The DNV is the first of a new generation of visas that targets a specific collective that Spain wants to incentivize and attract to move and work (remotely) in Spain.
It’s a legal fiction whereby a non-EU taxpayer is treated as a non-fiscal resident in Spain, but for administrative purposes, they are regarded as fully resident in Spain.
The DNV gives you a five-year residency permit. Initially on a one-year application, followed by two-year renewals up to a total of 5 years. The visa extends to the family of the main applicant.
The main highlight is that all income & assets held abroad go untaxed in Spain. In other words, any source of worldwide income is tax-exempt. For example, if you hold €8mn in the USA, this goes untaxed in Spain, because you are fiscally treated as a non-tax resident.
Out of all the visas available in Spain, it is hands down the one that offers the most perks, and which strongly appeals to affluent investors.
To be eligible to the Golden Visa, you need to invest €500,000 in Spanish real estate, in your personal name or through a company. The first €500,000 need to be unencumbered, you may (and should!) apply for a mortgage loan on the excess.
The Golden Visa does not automatically make you a tax resident in Spain. For that this reason, affluent investors will find it most appealing if they do not fancy paying taxes in Spain.
Initially granted for 3 years, it is then renewable every 5 years. One of the other perks is that no minimum stay is required. You can spend as little as only one day in Spain, or the full year-round, at your choice.
Golden visa applications are greatly expedited and usually granted in only 3 weeks. The whole family is included as dependents, even ascendants (such as grandparents), and it can lead to permanent residency and to the Spanish citizenship.
If you can apply for one, it is hands down the best visa to have in Spain.
Financing can help.
The good news is that you may already qualify unbeknownst to you. You see, Golden Visas apply retrospectively. If you have already invested in Spain €500,000 in real estate on
or after the 28 th of September 2013, you may already pre-qualify for one!
Contact Lionsgate Capital, the leading luxury mortgage experts in Spain for a personalised initial consultation.
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