I.- Introduction.
The Entrepreneurs Act was passed last Thursday, September 19th, 2013, however, the text has not yet been published in the Spanish Official State Gazette.
The Act responds to the need to undertake reforms favouring growth and economic recovery, promoting, among other areas, foreign investments.
In the following, we shall analyse the contents of the Act regarding “international mobility”, since this article mainly deals with the facilitation of entry and residence of foreigners in Spanish territory, foreign investments and, finally, foreign entrepreneurs and their business projects.
II. – Facilitation for the establishment of foreigners in Spain.
The aim of the law is to facilitate to foreigners the procedures of establishment and residence in Spanish territory for reasons of economic interest. For this, foreigners should be:
– Investors
– Entrepreneurs
– Highly qualified professionals
– Researchers
– Workers engaged in intercompany movements within the same company or group
– These facilities shall NOT apply to citizens of the European Union
In this aspect, the law, without prejudice to the general requirements for each visa or authorisation, requires by means of Article 62 the fulfilment of specific conditions depending on the type of visa and stay.
Additionally, obligations regarding the prevention of money laundering and terrorism financing legislation as well as the pertinent tax or Social Security obligations for the foreigner remain untouched by the new legislation.
III. – Investors
Foreigners who intend to make a significant capital investment may apply for an entry visa, or if applicable, a residence visa for investors.
A) Objective Scope.
A significant capital investment is deemed to be:
1. An initial investment equal to or exceeding 2 million Euro in Spanish government bonds, or 1 million Euro in stocks or shares in Spanish companies, or in bank deposits in Spanish banks.
2. Acquisition of real estate property in Spain for a global investment, equal to or exceeding 500,000 Euro per applicant.
3. A business plan that will be developed in Spain and is considered and proven to be of general interest.
In this case, a favourable report from the Economic and Commercial Office of the place where the investor applies for the visa is required in order to validate that the business plan submitted meets the parameters of general interest.
B) Temporary Scope.
1. Residence visa for investors: Allows residence in Spain for at least one year.
2. Residence permit for investors: It refers to those foreign investors who, having a residence visa, want to stay in Spain for longer than a year. The duration of this residence permit is 2 years, after which the renewal of the authorisation for another two years may be applied for.
The minimum stay of 6 months required for the renewal or conservation of the residence permit is no longer required.
IV. – Entrepreneurs
1. Foreigners may apply for a visa to enter and stay in Spain for a period of one year with the sole or main purpose of carrying out the procedural formalities for the development of the entrepreneurial activity.
However, by proving the effective start of the activity for which the visa has been requested, access to residential status can be gained, which implies the possibility of staying longer in our territory.
2. The Act also recognises the possibility of obtaining a residence permit for entrepreneurs seeking to initiate, develop and direct an economic activity (always in accordance with the general requirements of Article 62 of said Act).
Entrepreneurial activity should be defined as an innovative activity, with particular economic interest to Spain, having obtained approval for the business development by way of a favourable report from the Spanish Central Government.
Eduardo Vilá
Vilá Abogados
For more information, please contact
22nd of September 2013
