At the beginning of this year, the most prominent news was about the agreed and orderly exit of the United Kingdom from the European Union, which, as we well know, will finally take place on December 31 of this year.

Currently the Covid-19 covers all the covers due to the terrible effects that this global pandemic is having.

The European Union has decided to join forces and pool European funds to help the countries that have suffered the most from this unusual virus by injecting money into the economy, unlike the austerity measures that were taken in the most recent past.

Now, going back to the topic of this article, many Britons wonder what will affect them once Brexit is over, if they have a home in Spain or intend to buy it.

It is well known that from the moment they no longer belong to the European Union, they will be considered for all purposes of Spanish internal regulations as non-EU citizens, and therefore, their tax treatment will be quite different.


As a summary, the tax rate will be from 19% to 24% and they will not have the right to, for example, deduct the expenses they incur if they rent their house in Spain.
This simple effect can greatly reduce the profitability of the investments they made in the past and even discourage those they had planned to undertake in the near future.

There are many more negative effects, such as those that come with considering yourself a non-community citizen for the purposes of the Inheritance and Gift Tax or on capital gains.

But not only at the fiscal financial level, but also in terms of civil rights, such as the residency application, being now a mere procedure (although not exempt from enough bureaucratic procedures) it will become an administrative procedure in terms of visa with the what that entails.

Or being able to have coverage in the Spanish public Social Security upon becoming a resident (British resident citizens will continue to enjoy coverage under the “Withdrawal Agreement” until they cease to be residents) or simply the opening of a Bank account, with many more formal requirements.

Also in the area of ​​death insurance, this change will imply an increase in premiums since, since there are borders, the costs of the transfer will become very expensive.

Now, it is clear that many readers will be wondering whether it is better to choose to apply for residency before the definitive breach caused by Brexit occurs or wait to see how the facts unfold.
In my opinion, if one has really decided to remain European and for various reasons (business and corporate), to reside in Spain, now is the time to start the procedures.

Postbrexit, we do not know how difficult it will be to obtain a long-stay visa (either due to the effects of the Covid-19 or due to the formal and material requirements of the application or the huge number of applications) but what we do know is that Law 14/2013 currently provides a special regime for investors, which can greatly facilitate access to permanent residence.

This is what has come to be commonly called the Golden Visa and is designed for investor profiles, entrepreneurs or technical professionals.

This Law includes in its articles 63 to 72 the regulation of the visa for investors, but also includes the option of obtaining a visa for those entrepreneurs who are going to implement innovative business activities in the national territory.


The Golden Visa has been designed to attract foreign capital and has the following peculiarities:

In what type of investments can a foreigner invest?

1. Public bills, Bonds and Obligations (Treasury or Communities).
2. Participations or shares in Spanish Companies (for example, an investor can acquire participations in a resident Company whose assets are made up of a home).
3. Bank deposits.
4. Acquisition of Real Estate.
5. Business project (meeting certain requirements).

Can this investment be made through a non-resident entity (a foreign limited company for example)?

The answer is yes, but as long as this company is not domiciled in a territory considered a tax haven.

And how much do I have to invest?

1. In case number one, a value equal to or greater than two million euros.
2. In case number two and three, a value equal to or greater than one million euros.
3. In case number four, a value equal to or greater than half a million euros.
4. In case number five, the law does not include the minimum amount necessary to be considered a relevant investment but it does clarify that it must have a favorable report from the Economic and Commercial Office (ICEX).

Once the visa is granted, the holder will be able to reside in Spain legally for one year and renew it unlimitedly as long as they maintain the investments and have traveled to Spain at least once a year.

This option can be very interesting for all those who want to continue benefiting from an advantageous tax treatment and have their activity center in a country of the European Union with a quality of life index of the highest in the world.

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