Valencia, with its vibrant culture, stunning architecture, and picturesque landscapes, has become a hotspot for international investors seeking to acquire a slice of Mediterranean paradise. The Golden Visa program, designed to attract non-EU citizens, offers an opportunity to obtain a residence permit in Spain, allowing individuals and their families to work, live, and travel freely within Europe. However, this enticing prospect comes with a set of costs that potential investors should be aware of. Livin’Valencia Real Estate Advisors provides valuable insights into the comprehensive expenses associated with acquiring property in Valencia through the Golden Visa program.
Property Purchase Costs:
The minimum property investment requirement for a Golden Visa in Spain is €500,000, and this amount must be the investor’s own money, excluding mortgages. We suggest the possibility of spreading this investment across multiple properties, offering flexibility in the purchasing process. For instance, an investor can buy several properties, each valued at less than €500,000, or distribute the investment over multiple years.
Example: An investor may choose to spend €150,000 on a property initially, another €150,000 after a year, and the remaining €200,000 the following year. However, the residence permit application can only be submitted once the entire €500,000 has been invested.
Additional Costs and Taxes:
In addition to the €500,000 investment, there are other costs associated with obtaining a Golden Visa in Spain. We emphasize that taxes, stamp duty, notary costs, and registry fees are not included in the initial investment. For properties in new developments, a value-added tax (VAT) of usually 10% is applicable. On average, these additional costs amount to approximately 12% of the property purchase price.Example: For a property valued at €450,000, an investor should budget an additional €60,000 for taxes, registry costs, notary fees, and lawyer fees.
Legal and Administrative Fees:
To facilitate the Golden Visa application process, we collaborate with specialized legal partners. The costs associated with legal representation for the visa and residency permit application typically range around €3,500, excluding a 21% VAT, totaling approximately €4,250.Example: An investor should budget around €4,250 for legal fees to navigate the Golden Visa application process.
Total Costs of Obtaining a Golden Visa:
Livin’Valencia Real Estate Advisors underscores the importance of considering the total costs of obtaining a Golden Visa in Spain. This includes the €500,000 property investment, the additional 12% for taxes and transaction costs, and the legal fees, resulting in a total of around €565,000.Example: For an investor considering the Golden Visa, the total costs would be approximately €565,000, with the potential for further increases, such as translator fees.
Diversifying Investments:
We also suggest that investors explore the option of purchasing one property for personal use and another as an investment. This strategy not only provides a residence in the beautiful city of Valencia but also opens up the opportunity for rental income and potential appreciation.
Conclusion:
Investing in a property in Valencia through the Golden Visa program offers a gateway to both residency and a Mediterranean lifestyle. With a minimum investment requirement of €500,000, potential buyers must be aware of the comprehensive costs associated with the process. We recommend thorough research, professional guidance, and a clear budget to ensure a successful and rewarding investment in Valencia’s real estate market. The option to diversify investments by acquiring both a residence and an investment property adds a layer of financial flexibility and potential long-term gains for savvy investors.
