Investing in the real estate market abroad has become a sustained trend in recent years for Chilean professionals and entrepreneurs.
By 2019, 80% of the investment remained in Chile, while 20% went overseas. Today, the trend has reversed, with 80% focused internationally, reaching figures exceeding US$10 billion by 2022.
While the majority of compatriots investing abroad target the United States, a significant percentage also directs their attention towards Europe, particularly Spain.
According to the newspaper Estrategia, there are approximately one million Chileans living outside the country, according to INE figures. Of these, 10% choose Spain as their destination.
Golden Visa Spain
Hand in hand with this trend, there has been a sustained interest in the Spanish Golden Visa, as a real estate investment starting from €500,000 opens the door to this program.
There’s also the possibility to invest in other assets, such as shares of Spanish companies (€1 million) or government bonds (€2 million). However, the real estate option remains the most attractive.
This program allows obtaining residency with just one annual visit to Spain every 3 years, which is the renewal period for the Visa, a period that is later extended to 5 years.
It is also possible to obtain Spanish citizenship (passport). For this, the interested party must reside effectively in Spain for at least 183 days after investing, within a period ranging from 2 years -for Chileans and Latin Americans in general- up to 10 years.
The advantages of having a Spanish passport
Having citizenship not only allows unrestricted travel throughout the Schengen Area (European Union). According to a recent publication by the consultancy Henley & Partners, the Spanish passport is one of the most powerful in the world.
This is determined by the number of destinations their holders can visit without prior visa, according to information from both the International Air Transport Association (IATA) and the consultancy conducting the study.
In practice, this means that with a Spanish passport (and also with those of France, Germany, Italy, Japan, and Singapore), you can access 194 destinations worldwide without a visa or with visa-on-arrival. It’s important to note that this includes the possibility of traveling to Mainland China without a visa.
Attractive tax benefits for foreigners
In addition to this, there are tax regimes offering interesting benefits to foreigners who settle in Spain.
For example, within the law regulating the Personal Income Tax (IRPF), a special regime was created authorizing foreigners to pay a lower amount of taxes, as well as being exempt from declaring gains generated elsewhere.
Also known as the «Beckham Law,» named after the English footballer David Beckham, who signed for Real Madrid in 2003 and was one of the first to benefit from this regulation, which was enacted in 2004.
At AIM Global, we have a team of professionals specializing in international mobility issues, ready to accompany you throughout the Golden Visa process, from the initial procedures to finding properties compatible with the program and the best options for tax benefits.
Don’t hesitate any longer and schedule a meeting with us. We take care of the legal details, allowing you to focus on your commercial, professional, and personal objectives.
