Residency Options for Americans Buying Property in Spain

October 22, 2024

By David Bornstein

Buying a home in Spain will not automatically grant you Spanish residency, but there are several visa and residence options that will allow you to maximize your enjoyment of this sunshine-filled, culturally rich country. While it goes without saying that consulting a qualified Spanish immigration lawyer is ultimately essential in helping to achieve the best outcomes, here is a breakdown of the main options for Spain residency for Americans interested in buying property and living in Spain.

Tourist Visa (Schengen Visa)

For starters, as a U.S. citizen you probably know that you can enter Spain and other Schengen Area countries for up to 90 days within a 180-day period without the need for a visa. The Schengen Area includes 26 European countries that share open borders, meaning the 90-day limit applies to time spent in any combination of these countries, not just Spain.

The 90/180 Rule Explained:

This means that once you spend 90 days in the Schengen Zone (whether in Spain, France, Italy, or any other Schengen country), you will need to leave for 90 days before you can re-enter for another 90 days. It’s important to track your days carefully, as overstaying this limit can have serious consequences.

New EES (Entry/Exit System):

Starting in 2024, the Entry/Exit System (EES) will come into effect across all Schengen countries. The EES is an automated electronic system that will record the entry and exit of non-EU citizens, including U.S. travelers. This system will make it easier for Schengen countries to track how long people have stayed within the zone, ensuring the 90/180 rule is more strictly enforced.

• What this means for you: The EES will automatically log your movements and calculate how many days you’ve spent in the Schengen Zone, removing any ambiguity about whether or not you’ve overstayed your welcome. Overstaying your 90 days can result in fines, deportation, or even a ban from re-entering the Schengen Zone for a period of time.
• Impact on Future Residency Applications: It’s crucial to adhere to the 90-day limit, especially if you plan to apply for a residence permit in Spain in the future. Spanish immigration authorities closely examine the stamps in your passport or the electronic records to determine if you have overstayed. Overstaying your visa can hurt your chances of getting any future residence permits, as it shows non-compliance with visa regulations.

If You Have a European Citizen Spouse

If you’re lucky enough to have a spouse who is a citizen of a European Union (EU) country, your path to residency in Spain becomes significantly easier. As the spouse of an EU citizen, you can apply for family reunification under the EU citizen’s rights.

• Requirements:
  • Marriage or civil partnership certificate
  • Proof of the spouse’s EU citizenship (valid passport or ID)
  • Health insurance for the non-EU spouse
  • Proof of financial means (if required by Spanish authorities)

With this route, you’ll be able to reside in Spain under the rights granted to your spouse and will likely have more flexibility when it comes to working and staying long-term. After five years of residency, you can apply for permanent residence.

Non-Lucrative Visa

The non-lucrative visa is a popular option for U.S. citizens who want to live in Spain without working. This visa is ideal for retirees or individuals with sufficient savings or passive income.

• Requirements:
  • Proof of sufficient financial means (approximately €30,000 per year)
  • Private health insurance
  • No criminal record
  • You must not engage in any work activities in Spain
• Bringing Family Members:
  • Spouses or domestic partners and dependent children under 18 can be included in the application. You will need to demonstrate that you have sufficient financial resources to support all dependents.

The non-lucrative visa allows you to live in Spain for an initial period of one year, with the option to renew for two years at a time. After five years of legal residence, you can apply for permanent residency.

Golden Visa (Investor Visa)

For U.S. citizens looking to invest in property in Spain, the Golden Visa program is an attractive option. By purchasing real estate worth at least €500,000, you can qualify for this residency permit. The Golden Visa offers several benefits, including the ability to live and work in Spain, as well as travel freely within the Schengen Area.

• Requirements:
  • Minimum investment of €500,000 in Spanish real estate
  • Investment must be free of liens or mortgages (the first €500,000 must be unencumbered; however, you may mortgage any part of the real estate investment in excess of €500,000. Note this does not include your closing costs!)
  • Proof of financial stability to support yourself and any dependents
  • Private 100% health insurance coverage obtained in Spain
  • No criminal record
  • Must be over 18 years old
• Bringing Family Members:
  • The Golden Visa allows you to include your spouse or domestic partner, children under 18, and dependent children over 18 (such as those who are studying full-time). Dependent parents can also be included if they are financially dependent on you.
  • You must demonstrate sufficient financial means and health insurance coverage for each family member.
• Validity and Renewal:
  • Initial residency is granted for two years.
  • After two years, you can apply for a five-year renewal, provided you maintain the investment.
  • You do not need to reside full-time in Spain to renew, but you must visit Spain at least once per year.

Entrepreneur Visa (Entrepreneur Law Visa)

The entrepreneur visa is designed for those who want to start an innovative business in Spain. It’s a great option for U.S. citizens with a viable business plan, though it is not easy to obtain. This visa is aimed at fostering economic growth and innovation, so applicants must prove that their business idea will positively contribute to Spain’s economy.

• Requirements:
  • A detailed business plan with clear goals, financial projections, and evidence of innovation or technological advancement. The business plan will be reviewed by Spain’s Ministry of Economy.
  • The business must contribute to Spain’s economy by creating jobs or bringing new products or services to market
  • Proof of sufficient financial resources to support yourself and your business (varies depending on the scope of the business)
  • Private health insurance
  • No criminal record

Note: This visa is more challenging to secure due to the rigorous review of the business plan and financial requirements. Applicants should work with professionals to ensure their proposal aligns with Spain’s economic priorities.

• Bringing Family Members:
  • You can include your spouse or domestic partner and dependent children. You must prove that you have sufficient financial means to support all dependents while residing in Spain.
• Validity and Renewal:
  • Initially granted for three years.
  • After the initial three-year period, the visa can be renewed for another two years, provided the business is still viable and meets the original requirements.

A Note on Tax Residency

It’s important to note that holding a residence permit does not automatically make you a Spanish taxpayer. You only become a Spanish tax resident if you reside in Spain for more than 183 days per year. Once you are classified as a tax resident, you are required to file a Spanish tax declaration on your worldwide income.

• Double Taxation Treaty: Spain and the United States have a double taxation treaty in place to prevent U.S. citizens from being taxed twice on the same income. However, even if you are a Spanish tax resident, as a U.S. citizen, you are still required to file a U.S. tax return each year, regardless of where you live. Also, this may not relieve you of U.S. state tax obligations.

Given the complexity of tax laws, especially when it involves dual taxation and residency, it’s highly recommended to consult with a tax lawyer or financial advisor who specializes in international tax law. They can provide the best advice tailored to your specific circumstances and help you navigate both Spanish and U.S. tax requirements.

Update on the Status of the Golden Visa

It’s important to note that there has been discussion about phasing out the Golden Visa in Spain, as well as in other European countries such as Portugal and Ireland. These countries have already stopped accepting new applicants but have allowed renewals for individuals who already hold Golden Visas. As of now, the fate of the Golden Visa is being discussed in the Spanish Senate.