ADMITTING THIRD- COUNTRY NATIONALS FOR BUSINESS PURPOSES SPAIN 2014

Transcription

1 ADMITTING THIRD- COUNTRY NATIONALS FOR BUSINESS PURPOSES SPAIN 2014

2 The European Migration Network (EMN) is an initiative of the European Commission. The EMN has been established via Council Decision 2008/381/EC and is cofinancially supported by the European Union. Its objective is to meet the information needs of EU institutions and of Member States authorities and institutions by providing up-to-date, objective, reliable and comparable information on migration and asylum, with a view to supporting policymaking in the European Union in these areas. The EMN also serves to provide the general public with such information. To that end, the EMN has a network of National Contact Points (NCPs). The Spanish NCP is composed by experts from the Ministry of Employment and Social Security, Ministry of the Interior, Ministry of Foreign Affairs and Cooperation, and Ministry of Justice and the General Prosecutor s Office. It is coordinated by the Deputy General Directorate for Legal Affairs of the General Secretariat for Immigration and Emigration. Contact Deputy General Directorate for Legal Affairs of the General Secretariat for Immigration and Emigration (Co-ordinator of the National Contact Point for the European Migration Network) José Abascal, Madrid [email protected] Internet: NIPO: This document is available from: Internet: index.html european_migration_network/index_en.htm 2

3 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES SPAIN 2014 INDEX Top-line Factsheet... 4 SECTION 1 National frameworks for the admission of third-country nationals for business purposes.. 7 SECTION 2 Measures to prevent misuse/abuse of immigration channels for business purposes SECTION 3 Evaluation of policies to admit third-country nationals for business purposes, challenges and barriers SECTION 4 Good practices and lessons learned SECTION 5 Conclusions ANNEX

4 Top-line Factsheet TOP-LINE FACTSHEET As stated in the preamble of Law 14/2013, of 27 September 2013, on support for entrepreneurs and their internationalisation, the global economic crisis has revealed the best behaviour of internationalised companies and the importance of internationalisation as a growth factor and risk diversification. Countries have become of the need to advance towards new sustainable, intelligent and inclusive models. Economies based on talent appear to be more sustainable in the long term and drive key sectors, such as R&D&I and entrepreneurship. Assuming that the approach to migration policy is a reflection of a country s economic policy, it is possible to understand the change that Spanish migration policy has undergone since Traditionally, Spanish migration policy has been geared towards organising migration flows of workers in line with the needs of the labour market, focusing on aspects of control and security but disregarding the internationalisation of the economy. This previously useful approach is becoming inadequate in the light of the new global economic reality. The need to internationalise the economy and foreign undertakings, of attracting foreign talent and investment to Spain, to make the Spanish tourism sector less dependent on the seasons and more diverse, as well as the need to eliminate barriers to foreign entrepreneurship and to investment in business ventures that create jobs and positively affect an area in our country or a sector of general interest to our economy, prompted an evaluation of the strengths and weaknesses of our immigration regulations in A new method was applied in the evaluation, which was performed by a multidisciplinary team comprising not only traditional migration-policy stakeholders, namely the Ministry of Employment and Social Security, Ministry of the Interior and the Ministry of Foreign Affairs and Cooperation, but also the Ministry of Economy and Competitiveness. This Ministry introduced the business perspective to the analysis and played a key role in identifying barriers that migration regulations created to attracting investors and entrepreneurs. The analysis detected a need for a new model which considers international mobility as an element of competitiveness. The traditional system was lacking in important elements: Investors: there was no specific procedure framework for the admission and residence of investors and this forced them to resort to other procedures which did not meet their needs, such as residence permits without the right to engage in gainful activities, which required them to effectively reside in the country despite the fact that investors, due to their profile, travel from one country to another and stay for longer or shorter periods of time to evaluate how their investment is evolving. Entrepreneurs: the so-called temporary residence and self-employment permit poses significant inadequacies as it is limited to the geographical area of an autonomous region and to 4

5 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES a sector of activity. which meant obstacles for market unity. In the course of the procedure, the Ministry of Economy and Competitiveness was not involved, so that business projects were not evaluated from a commercial point or view. Highly qualified workers: with the exception of those cases substantiated by the Unit of Large Enterprises (Unidad de Grandes Empresas), a labour market test was applied and, on top of that, the standards used were applied, particularly as regards the salary threshold, in a more restrictive manner than in the Blue Card Directive, which meant a real barrier specially for young graduates. Transnational provision of services: the definition of the requirements was excessively rigid. Researchers: the system was very complex, lacked coordination with science regulations and required a double permit (residence and work). This legislation had been designed from a perspective guided by protecting the internal market and not by providing support to the internationalisation of the economy. These restrictions did not allow for the flexibility that a modern economy requires and restricted competitiveness. As a result, and as emphasised in the OECD Open for business study 1, in Spain had one of the lowest rates of foreign entrepreneurship, compared to other European countries. In the light of this situation and with the purpose of designing a more flexible regulation which would establish migration policy as a key factor in competitiveness, Law 14/2013, of 27 September, on support for entrepreneurs and their internationalisation was adopted: an economic migration regulation for categories affected by economic interest. The Law includes a specific system for immigrant investors and entrepreneurs, who are identified as Business owners, which is the term used in this study, (together with holders of an employment-related permit or investors in a business venture). Furthermore, it provides a specific system for intra-corporate transfers, whose flexible and open definition allows including in some of these categories others that were negotiated under MODE 4 in trade agreements. This way, Spain s negotiating position in the sphere of trade has been enhanced. A year after this Law entered into force, the estimated amount of investment received under the specific procedure for the admission of foreign investors - reached 2 e million, with investment in real property totalling 369,766,625 euros, while investment in financial assets amounted to e 37, With regard to investment in business ventures, investment totalling 39.5 million euros over the next 5 years is estimated. As for the creation of direct jobs created under the auspices of this Law related to foreign investment, a total of is estimated. As far as immigrant entrepreneurs are concerned, by 31 December 2014 a total of 82 had been granted residence. The total figure for investment linked to immigrant entrepreneurs from 30/09/2013 to 31/12/2014 is estimated around e 234 million. It is also estimated that a total of 2,624 jobs will be created in the coming years thanks to these entrepreneurial activi- 1 OECD (2010) Open for Business: Migrant Entrepreneurship in OECD countries, OECD publishing 2 Figures correspond to time period between entry in force of the law ( ) until

6 Top-line Factsheet ties of special economic interest for Spain. Moreover, this law has received very positive feedback from economic players and the OECD, which highlighted the adoption of the new regulatory framework as being particularly important in its International Migration Outlook The OECD emphasised that this specific model combines the perspectives of support to business internationalisation and the promotion of economic growth based on the traditional goals of migration policy: security and employment. 6

7 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES SECTION 1. NATIONAL FRAMEWORKS FOR THE ADMISSION OF THIRD- COUNTRY NATIONALS FOR BUSINESS PURPOSES 1.1. IMMIGRANT INVESTORS: OVERVIEW OF NATIONAL POLICIES Q1. How does the national legislation on immigration define the concept of investor? Law 14/2013, of 27 September, on support for entrepreneurs and their internationalisation, within the Title concerned with the internationalisation of the Spanish economy, devotes Section 2 of Title V to International mobility. This section has a dual aim: firstly, to support economic growth by means of the internationalisation of Spanish companies and, as a result, to create jobs; secondly, to make it easier for a series of categories of skilled and highly skilled migrants, including investors, to enter and stay in Spain for reasons of economic interest. Article 63 of Law 14/2013 defines an immigrant investor as one who is not a national of a European Union member State and who is intending to enter Spain for the purposes of making a significant capital investment. A significant capital investment is considered to be one which falls into one of the following categories: a) An initial investment with a value equal to or greater than 2 million euros in Spanish government debt securities or for an amount that is equal to or greater than one million euros in shares or equity holdings in Spanish companies, or bank deposits in Spanish financial institutions. b) The purchase of real property in Spain with an investment value equal to or greater than 500,000 euros by each applicant net of any charge or tax. c) A business project intended to be carried out in Spain and which is deemed and approved to be of general interest, in which case it will be assessed to determine whether it fulfils at least one of the following conditions: 1. Job creation. 2. Investment with an important socio-economic impact in the geographical area in which the activity will be carried out. 3. Important contribution to scientific and/or technological innovation. Given that in Spanish law and in Spanish language there is no distinction between an immigrant investor and an immigrant business owner, letter c) could be seen as best suited to the 7

8 Section 1: National frameworks for the admission of third-country nationals for business purposes category of immigrant business owner (this category is specifically analysed in sections 1.3 and 1.4 of the study). One of the key elements of the new Law 14/2013 is its flexibility compared to the general immigration framework established in Organic Law 4/2000. Accordingly, and in order to be better adapted to the changing needs of business transactions, Law 14/2013 eschews very narrow definitions. The concept of investor covers significant capital investments made by natural persons or legal entities provided that, in this case, the legal entity has its domicile in a territory which Spanish legislation does not consider to be a tax haven, and that the foreign national holds whether directly or indirectly the majority of the voting rights and has the power to appoint or dismiss the majority of the members of its board of directors. Foreign nationals who fit into these categories and meet the general requirements (sufficient economic means, medical insurance, no criminal record, etc.) shall receive a residence visa which entitles them to reside in Spain for up to one year. For periods of residence of more than one year, it is possible, once the visa has been obtained, to apply for an investors permit, granted for renewable periods of two years. Q2a. Does Spain have a specific policy, programme or scheme for investors who are third-country nationals? Yes. Q2b. If yes, please provide information about the specific policy, programme or scheme for investors who are third-country nationals, including a) the name of the policy/programme/scheme; b) its main objectives (neutral, pro-active); c) whether it is structured in specific investment types: real estate purchases, transfer of capital, national funds and bonds, business investments, donations to public projects, mixed investments, joint ventures, etc.; or d)economic sectors/ geographical areas/strategic sectors; and whether e) a quota is in place. a) Name of programme and legal basis Law 14/2013, of 27 September, on support for entrepreneurs and their internationalisation. Title V, Section 2: International mobility. b) Main objectives Migration policy can be a factor which assists or, on the contrary, hinders the arrival of international investors. Within a context of liberalisation of capital flows, investors look at countries that have a solvent economy and an attractive regulatory framework from various perspectives, including migration. 8

9 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Spanish immigration regulations were focused on managing flows of workers while meeting the needs of the labour market, but lacked a specific regulation for international investors. In addition, it was difficult for investors to come to Spain because they were required to actually reside in the country for more than 180 days per year, which represented an obstacle for them. Moreover, Spain is one of the leading powers in tourism. Tourism is directly responsible for almost 11% of national GDP and generates 12% of employment in the country. However, some elements characteristic of the Spanish tourism model require action in order to improve its sustainability as a sector. Demand is highly concentrated in a few source markets (mainly EU countries) and in the summer months, which makes it necessary to design specific measures to diversify the markets by expanding to cover non-european markets, and to make tourism less dependent on seasonal factors, thereby achieving more stable employment in the tourism sector and in the sectors that depend on it. One of the measures geared at making improvements on these points is promoting property purchases (in many cases, second homes) among foreign nationals who are not EU citizens and allowing them to have a visa which would enable them to enjoy the property, even though they do not live continuously in Spanish territory. It was also deemed appropriate to boost another type of investment (in government debt or shares or equity holdings in Spanish companies). However, given the risks that this type of investor may entail, one of the law s clear objectives was to reinforce security guarantees and checks on the origin of the funds, in order to prevent money laundering and the financing of terrorism. c) Type of investment The Law structures the system for admitting investors making different types of investment. Specifically, a significant capital investment (as indicated in question 1) may be made in moveable capital, real property and business ventures, with each type of investment defined on the basis of minimum amounts of investment or other criteria: a) Moveable capital: Spanish government debt securities: initial investment value equal to or greater than 2 million euros Shares or equity holdings in Spanish companies: initial investment value equal to or greater than one million euros. Bank deposits in Spanish financial institutions: initial investment value equal to or greater than one million euros. b) Real property: acquisition of real property in Spain with an investment value equal to or greater than 500,000 euros by each applicant net of any charge. c) A business venture intended to be carried out in Spain and which is deemed and approved to be of general interest, in which case it will be assessed to determine whether it fulfils at least one of the following conditions: 9

10 Section 1: National frameworks for the admission of third-country nationals for business purposes 1. Job creation. 2. Investment with an important socio-economic impact in the geographical area in which the activity will be carried out. 3. Important contribution to scientific and/or technological innovation. d) National priority economic sectors /national priority geographical areas / countries of origin targeted by the measure Tourism sector One of the aims of this specific policy to attract immigrant investors is to help improve the characteristics of the Spanish tourism sector. The tourism sector is a priority for the national economy. Tourism represents 11% of the GDP and creates 12% of employment. It is an important asset for creating wealth and employment, which is highly dynamic even in times of crisis and has great capacity to cause positive knockon effects in other productive sectors. For this reason, Spain views tourism as a strategic axis for economic recovery as part of its road map and tourism policy initiatives are intended to assist the sector in becoming more competitive, innovative and sustainable and in strengthening its position as a world leader in the medium to long term. Due to the importance of residential tourism in Spain, property investment has been taken into consideration. This measure is especially aimed at attracting non-european residential tourism in order for the tourism source market to become more diverse while making the most of the advantages that emerging tourism source markets offer the sector, and for the tourism sector to become less dependent on seasonality. Creation of jobs, geographical area and R&D&I In the case of business ventures, the general interest associated with the project is assessed specifically in relation to the following: job creation, the socio-economic impact that the implementation of the business venture will have on the geographical area in which it will be carried out, and the contribution that it will make to scientific and/or technological innovation. As a result, the model for attracting immigrant investors aims to promote projects which will make a positive contribution to the economy in general and to the economy in the geographical area in question. Special interest is paid to projects carried out in the R&D&I sector due to the important role that this sector plays in changing the economic model, as stated in Spain s Programme of National Reforms 2014, taking into account the positive effects that this sector has on productivity, competitiveness and, therefore, long-term economic growth. e) Quotas The system to attract immigrant investors is not subject to quotas. 10

11 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Q3a. What are the main actors and institutions involved in the development of policies to attract immigrant investors? If multiple authorities are involved, how are they coordinated? Is there an official mandate, for example an action plan governing the involvement of these authorities? An inter-ministerial working group has been set up in Spain. This group was the driving force behind a new system of visas and permits to make it possible to attract investment and advance the internationalisation of companies. The system was formalised in Law 14/2013, and it is this group which takes part in implementing the system. Together with traditional migration-policy stakeholders, the Ministry of Foreign Affairs and Cooperation, the Ministry of the Interior and the Ministry of Employment and Social Security representatives from the Ministry of Economy and Competitiveness have also joined this group, specifically, the State Secretariat for Trade and Invest in Spain, in order to incorporate the business perspective into the new policy s definition and design. The group meets regularly in order to evaluate the implementation of the Law and respond to the challenges posed by its application. With regard to attracting investors, participation is laid out in Law 14/2013 in the following way: The Trade Office of the geographical area where an investor submits a visa application, or the General Directorate for International Trade and Investment if a permit is requested, is responsible for issuing a report in which the grounds of the general interest associated with the business venture are assessed. The Ministry of Foreign Affairs and Cooperation is the competent body for issuing the visas. Diplomatic Missions and Consulates consult the Directorate-General for Police of the Ministry of the Interior on security risks each time a visa application is made. The Large Companies and Strategic Groups Unit, which depends on the General Secretariat for Immigration and Emigration of the Ministry of Employment and Social Security, is the competent body for processing residence permits (in cases of residence for more than one year). It should also be highlighted that organisations from the business community participated throughout the design phases of this specific policy to attract immigrant investors. Q3b. Which actor/institution is responsible for the promotion of the policy to attract immigrant investors? Firstly, actions to promote the policy to attract immigrant investors have been carried out by Invest in Spain. Invest in Spain is an Executive directorate of ICEX-España Exportación e Inversiones, (state-owned company under the responsibility of the State Secretariat for Trade of the Ministry of Economy and Competitiveness whose mission is to 11

12 Section 1: National frameworks for the admission of third-country nationals for business purposes attract direct foreign investment to Spain. It has a foreign network of more than 100 Economic and Trade Offices in Spanish Embassies, which facilitates access to potential international investors Its main objective is to promote, attract and secure direct foreign investment in Spain, and pays special attention to new investment projects from countries and in sectors and activities that offer the highest growth potential in Spain. Law 14/2013 is a key instrument that is enabling Invest in Spain, among other tools, to position Spain as an internationalised and competitive economy which is open to investment. From the end of 2013 to the present ICEX-Invest in Spain has carried out a total of 133 promotion activities (attendance and participation in general events are not included) in different countries (for example, China, the United States, Canada, Russia, Mexico and other Latin American countries such as Argentina, Brazil and Chile) to attract investment. The investment conditions and opportunities that currently exist in Spain and the New Law for Entrepreneurs were presented as part of these initiatives, whether at open events and seminars or in closed meetings with potential investors. Secondly, working together in a coordinated manner, the General Secretariat for Immigration and Emigration, the State Secretariat for Trade and the Ministry of Foreign Affairs and Cooperation have promoted a dissemination programme with different public and private actors, with the objective of publicising the new system. A system of capillarity or training of trainers has been used, focusing on stakeholders who may contribute to circulate the contents of the Law. The target audience includes: Other Authorities: for example, Barcelona Activa, Invest in Madrid. Law firms, administrative agents. Immigration offices. Embassies and consulates. Commercial Offices. Activities and meetings with key countries. Thirdly, a specific website, has been created and information leaflets have been prepared in English and Spanish. ( Q4a. Does the policy to attract immigrant investors have any particular features? Yes. Q4b. If yes, please complete the table below with regard to the measures established, if applicable, to attract immigrant investors to Spain. 12

13 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Measures What do these specific measures entail? (Active promotion/ information/campaigns/ events with third countries, etc.) Brief description of the measure The General Secretariat for Immigration and Emigration, the State Secretariat for Trade, the Ministry of Foreign Affairs and Cooperation, the Ministry of the Interior, and Investment in Spain (ICEX) have been working hard to promote the new regulation at national and international levels. Information is also being disseminated regarding the specific features of the system to attract third-country investors: requirements and effects in the area of admission, stay and residence, by means of: Preparing leaflets that can be accessed on the Internet in various languages. Holding seminars and conferences (International Mobility Seminar, the 1st Conference of the EMN National Contact Point in Spain). Explanatory classes intended for immigration offices. Participating in conferences. Events held in other countries, such as Mexico, China, the United States, Canada, Brazil, the UAE, Argentina, Chile, Ecuador, Peru, Kuwait, Russia, Venezuela, etc. Do procedural facilitations exist? What do these facilitations entail? (Reduced costs, shortened processing times, reduced documentary requirements, minimum residence period required (per year), possibility of renewal, etc.) There are two categories: Residence visa: sufficient entitlement to live in Spain for at least one year. Residence permit for investors: for investors who wish to reside in Spain for more than one year. It is valid throughout the national territory for two years and is renewable (compared to the one-year duration which initial permits generally have under Spanish law). A specific, streamlined procedure consisting of shorter processing times has been drawn up: visas are processed within 10 working days and residence permits within 20 working days, if the application is submitted with all the necessary documents. Specialised staff processes the permits at a one-stop service centre (Large Companies Unit [UGE by its acronym in Spanish]). They may be renewed even in the case of absences of more than six months per year provided the holder has travelled to Spain at least once. The investor is allowed to work without the national employment situation (labour market test) being applicable, since their activities and projects contribute to economic growth, drive the internationalisation of the economy and provide added value. Are there tax incentives? Not under the Mobility Section of Law 14/2013. However, the fact that an effective residence is not required, has taxation consequences. Does the possibility exist for the investor to be accompanied by family members? Are they allowed access to the labour market? Law 14/2013 establishes a specific procedure (different from the general procedure of the Organic Law on Foreign Nationals, LOEX) as regards family reunification for spouses and children. In contrast to the general reunification procedure, one year s residence in Spain before reunification is not required. The spouse has unrestricted access to the labour market. 13

14 Section 1: National frameworks for the admission of third-country nationals for business purposes Measures Are immigrant investors granted access to social security? Brief description of the measure As a general requirement, foreign investors must have public or private medical insurance for themselves and the members of their families, taken out with an insurance institution that is authorised to operate in Spain. They must also have sufficient economic resources for themselves and for the members of their family for the period of residence. Are immigrant investors granted access to Spanish nationality? No special provisions regarding access to nationality have been established for investors. As a result, the general rules are applied, which require a period of legal and continued residence of 10 years, as a general rule, good citizenship and a sufficient level of integration into Spanish society. An investor not effectively residing in Spain has no access to nationality.. Others Q5a. Has Spain entered into any bilateral agreements, or other types of agreements, with third countries to attract immigrant investors? At the bilateral level and as an expression of the growing link between migration and trade, Spain has signed a Memorandum of Understanding with certain countries and is working towards signing similar instruments with other countries with which there is a mutual economic interest. For example, on 10 June 2014, Spain and Mexico signed a Memorandum of Understanding with the aim of making it easier for people in categories related to the business world, including investors, to enter and stay in the respective territories for reasons of mutual economic interest. In order to achieve this goal, the parties committed to promoting the elimination of unjustified administrative obstacles and barriers that make it difficult for these groups to enter and stay, and efforts will be made to shorten the processing times of visas and permits as much as possible. Furthermore, work is also being carried out to sign similar instruments with other countries with which there is mutual economic interest. In addition, negotiations were held in October 2014 under the General Cooperation Agreement signed on 22 February 2007 by the kingdoms of Saudi Arabia and Spain, with the aim of implementing different measures for cooperation between the two countries. Within the framework of the Bilateral Committee created under the aforementioned agreement, certain issues related to international mobility have been addressed. In the Latin American area, point 5 of the Declaration of Veracruz signed at the XXIV Ibero-American Summit (held in Veracruz, Mexico) includes a commitment to boost the mobility of investors (among other groups) in Latin America. Q5b. Does Spain share information with other Member States? Does Spain 14

15 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES consult other Member States regarding the issue of the documents listed in Q4.b to immigrant investors? Consultation with other Member States is carried out regarding security requirements NATIONAL POLICIES IN CONNECTION WITH IMMIGRANT INVESTORS: PRE-ARRIVAL STAGE (ADMISSION CRITERIA) AND STAY (RENEWAL) Q6a. Please indicate which of the criteria referred to in the table act as requirements to admit immigrant investors and, if applicable, describe them. Admission criteria Minimum amount to invest (please indicate the minimum amounts to invest for each type of investment identified in Question 2b point c) Investment Plan If Yes, please complete the table in Q6b Expected impact of proposed investment in the Member State (economy, public life, etc.). Description Spanish regulations establish minimum amounts to invest, both for investments in moveable capital and for investments in real property. a) Moveable capital: Spanish government debt securities: initial investment value equal to or greater than 2 million euros. Shares or equity holdings in Spanish companies: initial investment value equal to or greater than one million euros. Bank deposits in Spanish financial institutions: initial investment value equal to or greater than one million euros. b) Real property: acquisition of real property in Spain with an investment value equal to or greater than 500,000 euros by each applicant net of any charge. On the contrary, a minimum amount is not set for a business venture, although a favourable report is required, in which the general interest associated with the business venture presented is confirmed. In order to obtain the general interest report, a business plan for the business venture must be submitted which is evaluated by the Ministry of Economy and Competitiveness. Type of investment: business venture, the Ministry of Economy and Competitiveness evaluates the impact that the project will have is assessed before granting the visa/permit. Specifically, it is evaluated to determine whether it meets at least one of the following conditions: 1. Job creation. 2. Investment with an important socio-economic impact in the geographical area in which the activity will be carried out. 3. Important contribution to scientific and/or technological innovation. 15

16 Section 1: National frameworks for the admission of third-country nationals for business purposes Admission criteria Minimum Education/Professional skills Description Not required, but taken into consideration depending on the business venture. Language knowledge (certification, pre-entry test, mandatory courses, etc.) Age of applicants (minimum / maximum) Security / health / background checks (origin of investment, fraud checks, previous bogus activities, etc.) Not required. Minimum age of 18. Security checks have been stepped up under Law 14/2013. The provisions established in Law 10/2010, of 28 April, on the prevention of money laundering and the financing of terrorism apply. Therefore, the applicant must fulfil the obligations laid down in this law and prove the licit origin of the capital. All visa applications are subject to a consultation with the General Directorate of Police on security risks. Applicants must prove that they have not had a criminal record in the last 5 years. The applicant must also satisfy the relevant tax or Social Security obligations. Furthermore, the applicant must not be listed as someone to be rejected in the territory of countries with which Spain has signed an agreement in this respect. Applicants must have medical insurance and sufficient financial means. The Law confers powers on the authorities to perform the necessary checks to ensure that the requirements are fulfilled. Q6b. In the event that an investment plan is required, please complete the table below with a yes or no answer. If yes, please describe each element of the investment plan. Investment in a business venture: as mentioned in question Q6a, one of the specific documents that is required from an applicant for a visa or residence permit for investors is a favourable report on the existence of grounds of general interest; the applicant of this report is required to submit a business plan for the business venture. 16

17 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Elements of the Investment Plan Information required on legal aspects of the investment. Information required on the commercial and financial aspects of the investment (nature of the investment, origin of the capital, groups, preliminary contracts, performance indicators, etc.) Institution responsible for the assessment/approval Deadline for the assessment of the plan Explanation If an application is submitted for a visa or residence permit, a favourable report must have been obtained from the Ministry of Economy and Competitiveness to establish that the business venture is of general interest. The following must be described, in particular, in the Venture s Business Plan: The investor s professional profile. The activity to be carried out. The jobs that will be created. The characteristics and qualifications required for each job that will be created. The geographical area in which the project will be implemented. The amount of the investment. The origin of the investment. If an application is made for a residence visa, the report is issued by the Economic and Trade Office in the geographical area in which the investor submits the visa application. If an application is made for a residence permit, before submitting the application the general interest report must be requested from the General Directorate for International Trade and Investment of the Ministry of Economy and Competitiveness, which shall confirm that the originally proven grounds of general interest still exist. Law 14/2013 does not identify a maximum deadline for the assessment of the plan. Documentation required (If a list exists, please report it here) Review period Other Even though Spanish regulations do not require that an investment plan be submitted in the case of investments in moveable capital and real property, the manner in which to provide evidence of the investment made in these two categories is outlined below, using the same table proposed for the investment plan. 17

18 Section 1: National frameworks for the admission of third-country nationals for business purposes Method to provide evidence of the investment Investment in real property Elements of the Investment Plan Information required on legal aspects of the invest-ment Explanation If an application is made for a residence permit, ownership of the investment made must be proven. Specifically: In the case of investment in non-listed shares or equity holdings, it must be proven by means of the copy of the investment declaration made in the Foreign Investments Register of the Ministry of Economy and Competitiveness. In the case of investment in listed shares, a certificate shall be submitted from the financial intermediary, duly registered in the National Securities Market Commission or in the Bank of Spain. In the case of investment in Spanish government debt securities, a certificate from the financial institution or from the Bank of Spain shall be submitted. In the case of investment in bank deposits, a certificate from the financial institution shall be submitted. If an application is made for a residence permit, in addition to being the holder of an investor visa (and, therefore, having satisfied the aforementioned requirements), maintaining or increasing the initial investment must be proven. Information required on the commercial and financial aspects of the investment (nature of the investment, origin of the capital, groups, preliminary contracts, performance indicators, etc.) The licit origin of the investment must be proven and there it to be compliance with legislation on control of capital origin, prevention of money laundering and terrorist financing. Institution responsible for the assessment/approval In the cases of investment in government debt, deposits, shares or property investment, the Diplomatic Mission or Consulate is the competent body for the visas and the Large Companies Unit for the residence permits. If a general interest project is carried out, a favourable report must have been obtained previously from the Ministry of Economy and Competitiveness (Trade Offices or General Directorate for International Trade and Investment). Duration of examination 18

19 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Elements of the Investment Plan Documentation required (If a list exists, please report it here.) Explanation If an application is made for a residence permit, the following must be provided: In the case of investment in Spanish government debt securities: a certificate must be submitted from the financial institution or from the Bank of Spain, indicating that the applicant is the sole owner of the investment for a period that is equal to or longer than five years. In the case of investment in non-listed shares or equity holdings in Spanish companies: the copy of the investment declaration made in the Foreign Investments Register of the Ministry of Economy and Competitiveness must be submitted. In the case of investment in listed shares: a certificate from the financial intermediary, duly registered in the National Securities Market Commission or in the Bank of Spain, must be submitted, in which it is stated that the interested party has made the investment for the purposes of this rule. In the case of investment in bank deposits: a certificate must be submitted from the financial institution, in which it is stated that the applicant is the sole holder of the bank deposit. If an application is made for a residence permit, in addition to holding an investor visa (and, therefore, having provided the aforementioned documents in due course), the following must be provided: In the case of investment in Spanish government debt securities: a certificate must be submitted from the financial institution or from the Bank of Spain, in which it is verified that, during the aforementioned reference period, the number of government debt securities that were acquired when the initial investment was made is maintained or increased. The certificate must be dated within the 30 days preceding the application submission. In the case of investment in non-listed shares or equity holdings in Spanish companies: a notarial certificate must be submitted, demonstrating that during the aforementioned reference period the investor has retained ownership of the non-listed shares of equity holdings and is thus eligible to obtain an investor visa. The certificate must be dated within the 30 days preceding the application submission. If they are listed shares: a certificate from a financial institution must be submitted, stating that the interested party has kept an average amount of at least one million euros invested in listed shares during the aforementioned reference period. The certificate must be dated within the 30 days preceding the application submission. In the case of investment in bank deposits: a certificate must be submitted from the financial institution, establishing that the investor s deposit was retained or increased by the latter during the aforementioned reference period. The certificate must be dated within the 30 days preceding the application submission. Review period Others 19

20 Section 1: National frameworks for the admission of third-country nationals for business purposes Investment in real property Elements of the Investment Plan Information required on legal aspects of the investment Explanation If an application is made for a residence permit, the acquisition of ownership of the real property must be proven. If an application is made for a residence permit, in addition to being the holder of an investor visa, ownership of the real property for the required minimum amount must be proven. Information required on the commercial and financial aspects of the investment (nature of the investment, origin of the capital, groups, preliminary contracts, performance indicators, etc.) The licit origin of the capital must be proven. Institution responsible for the assessment/approval Diplomatic Missions and Consulates. Duration of examination / due diligence phase 10 working days. Documentation required (If a list exists, please report it here.) If an application is made for a residence visa, a certificate from the Land Register must be provided with continuous information on ownership and encumbrances. This certificate includes an electronic verification code for online consultation. If at the time the application is submitted the purchase of the real property is in the process of being entered in the Land Register, presentation of the certificate indicating that the purchase document submission entry is valid will be sufficient, accompanied by the proof of payment of the relevant taxes. If an application is made for a residence permit, as well as holding an investor visa, the applicant must submit a certificate of ownership from the Land Register issued in the 90 days before the submission of the application. Review period Other 20

21 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Q7. If the criteria for admission are satisfied, what initial document is issued? Please provide details on: Type of document (e.g. short-stay visa, authorisation to stay, long-stay visa, residence permit, etc.) Its duration Whether the duration is longer than the usual duration which applies to other categories of third-country nationals Whether its validity differs (and how) from its renewal. For the immigrant investor category, a residence visa or an initial residence permit may be issued. The residence visa for investors specifically allows the holder to reside in the country for at least on year. In contrast, the residence permit entitles the holder to reside and work in the country, and is valid throughout the national territory. It has an initial validity period of two years, and may be renewed for the same period of two years, if the investment made is maintained and if the holder has made at least one visit to Spain during the residence period. It is therefore possible to identify two fundamental differences between the initial residence permit for investors and the initial permits granted under the general immigration regulations: 1. Their validity period: initial permits are generally valid for one year, compared to the twoyear validity of the residence permit. 2. It is not necessary to meet the requirement of actual residence in Spain, which is understood to be residence of more than 183 days, although in case of non-residence, investors will not have access to long-term residence or nationality. Q8. Where and by which institution (inside the country or abroad) are the documents issued? (For example, diplomatic mission in the third country, other responsible representative, intermediary agency, etc.) The residence visa is processed at the Spanish Consulate in the country of origin or of residence. The residence permit will be processed in the Large Companies and Strategic Groups Unit. Q9. Requirements in case of extension of the initial document issued for the stay of immigrant investors. Please provide details of the type of document issued and its duration. 21

22 Section 1: National frameworks for the admission of third-country nationals for business purposes Renewal criteria Explanation What are the requirements in connection with the purpose of stay (investment) that need to be met in order to prolong/ extend the initial authorisation of stay/long-stay visa/residence permit? The initial residence permit is valid for two years. After this period has ended, the immigrant investor can apply to have the residence permit for investors renewed for the same two-year period provided that: The investment made is maintained. With regard to maintaining the investment, the national authorities may carry out the checks that they consider appropriate to verify compliance with legislation in force. A case-by-case analysis is also conducted. At least one visit has been made to Spain during the residence period IMMIGRANT BUSINESS OWNERS: OVERVIEW OF NATIONAL POLICIES Q10. How does Spanish legislation define immigrant business owners? When performing an in-depth study of this category, a clarification must first be provided. The general immigration regulations include the so-called temporary residence and self-employment permit, which enables a foreign national of over 18 years of age to stay in Spain for a period of more than ninety days but less than five years to carry out a self-employed activity that generates income. In order to obtain said permit, in addition to meeting all the requirements imposed on nationals to commence and carry out the planned activity, fulfilment of the requirements for a sufficient amount of investment and the potential creation of jobs must be proven. This permit has significant weaknesses, as it is limited to the geographical area of an Autonomous Community and to one sector of activity. Furthermore, the initial permit is valid for one year, does not take into account the inherent risk of any business and is intended for nonresident foreign nationals; the permit application must also be submitted, followed by the visa application made at the Spanish consulate that is responsible for their place of residence, once it has been granted. During the process of analysis of Spanish regulations to attract business-related migration, it was found that these restrictions detracted from the system the flexibility required by the modern economy and put up barriers to market unity, as work permits are subject to geographical restrictions. Furthermore, according to the data from the OECD study Open for Business 3, in Spain had one of the lowest rates of foreign entrepreneurship, compared to other European countries. According to the study, there is at least a partial correlation between flexibility concerning visas for investors and the rate of entrepreneurship by foreigners. 3 OECD (2010) Open for Business: Migrant Entrepreneurship in OECD countries, OECD publishing 22

23 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES In the light of this situation and with the purpose of designing a more flexible regulation, Law 14/2013 includes a specific system for immigrant entrepreneurs. Law 14/2013 itself contains a definition of entrepreneurial and business activity, which is construed as innovative activity with special economic interest for Spain and, for this purpose, one which has obtained a favourable report from the competent national administration body. The difference between the entrepreneur permit under Law 14/2013 and the residence and self-employment permit lies in the innovative nature and special economic interest that the entrepreneurial activity must offer Spain. Finally, it is not possible to exclude from this analysis of the definition of business owner the fact that the immigrant investor system includes investment in a business venture, with the possibility that the investor is also the owner of the venture. Q10a. Does your Member State have a specific policy, programme or scheme for immigrant business owners? Yes. Even though Spain s traditional migration model included the residence and self-employment permit, the limitations that this type of permit posed (in terms of geography, for example) and the obligation to apply for the permit outside Spain were a real obstacle to foreign entrepreneurship in Spain. In the light of this situation and aware of the need to encourage entrepreneurship as a force to generate wealth and dynamise the economy, a process of reflection was launched regarding the Spanish regulatory framework to attract immigrant entrepreneurs, among other groups. This process resulted in the adoption of Law 14/2013, which includes a specific scheme for entrepreneurs. Q10b. If yes, please provide more information about the specific policy, programme or scheme, including a) the name of the policy, programme or scheme; b) its main policy objectives (neutral, pro-active); c) whether it targets a specific type of businesses and/or d) economic sectors/geographical/strategic areas; and whether d) a quota is in place to control the number of entries or permits that can be issued to immigrant business owners. a) Name of policy In the regulations of Law 14/2013, of 27 September, on support for entrepreneurs and their internationalisation - Title V, Section 2: International mobility, there is a specific chapter devoted to entrepreneurs and business activities. b) Main objectives The main objective is to eliminate the obstacles that may be in the way of foreign entrepre- 23

24 Section 1: National frameworks for the admission of third-country nationals for business purposes neurship and to establish a regulatory framework that is conducive to this entrepreneurial activity. It will make it easier for third-country nationals who wish to carry out an innovative entrepreneurial business activity that is of special economic interest to Spain to enter and stay in the national territory. The measures are intended for: a) entrepreneurs who are outside the national territory: for this category, there is a visa geared at undertaking foresight activities that entitles the holder to reside in the country for up to one year, with the objective of completing the formalities prior to carrying out an entrepreneurial activity classified as special interest by the Ministry of Economy. b) entrepreneurs who are in Spain: according to the data of the OECD study mentioned above, the vast majority of foreign entrepreneurs were already in the country. For this reason, facilitation has been established to allow foreign nationals who are legally in the country to access a specific residence permit for entrepreneurs. Spain has world-class Business Schools which offer entrepreneur training programmes and have entrepreneur incubators. However, immigration regulations made it difficult to retain this talent, as it was not easy to exchange the student visa for a self-employment permit. This situation has improved substantially, since foreign nationals with a project of economic interest can apply to have their visa or permit changed. c) Type of business (for example a specific sector, knowledge-based sector, start-up, spin-off, etc.) The Law establishes this permits and visas are granted to entrepreneurs who submit innovative ventures of special interest for the economy of Spain. Given that economic activities are much more dynamic than the regulations, a decision was made to not have an exhaustive list of strategic sectors and instead the Ministry of Economy and Competitiveness carries out individual, case by case assessments, based on each business venture. In specific terms, the potential to create jobs and the innovative nature of the venture are assessed as priorities, in addition to the entrepreneur s profile, the added value for the Spanish economy, the innovation or business opportunities. With regard to sectors, those which are job-creation-intensive or which provide added value to the economy stand out, such as information and communication technology, engineering and internationalisation support sectors, etc.). d) National priority economic sectors / national priority geographical areas / countries of origin targeted /strategic partners required As pointed out in the previous question, the project s job-creation potential and innovative nature are priorities. The added value that may be provided to the economy is also taken into account. 24

25 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Geographical areas have not been established, but when projects are analysed, less-developed areas or those with higher unemployment are taken into account. No priorities have been established either in respect to countries or strategic partners. Nevertheless, the regulation is being publicised through the Network of Spanish Economic and Trade Offices abroad. e) Quotas The system to attract immigrant entrepreneurs is not subject to quotas. However, given that by definition it is a selective system requiring prior assessment by the Ministry of Economy and Competitiveness of the activity s special economic interest, the number of permits granted remains within certain parameters which are not excessively high. Q11a. What are the main actors and institutions involved in the development of policies to attract immigrant business owners? If multiple authorities are involved, how are they coordinated? Is there an official mandate, for example an action plan governing the involvement of these authorities? An inter-ministerial working group has been set up in Spain, with the participation of the Ministry of Economy and Competitiveness (State Secretariat for Trade and Invest in Spain), the Ministry of Employment and Social Security, the Ministry of the Interior and the Ministry of Foreign Affairs and Cooperation.. This group was the driving force behind a new system of visas and permits, formalised in Law 14/2013, to attract investment and advance the internationalisation of companies. It is this group which currently takes part in implementing the system. With regard to attracting entrepreneurs, participation is laid out in Law 14/2013 in the following way: The Business Office of the geographical area where an investor submits a visa application, or the General Directorate for International Trade and Investment if a permit is requested, is responsible for issuing a report on the interest of the entrepreneurial activity. The Ministry of Foreign Affairs and Cooperation is the competent body for issuing the visas (if the applicant is not in Spanish territory). The Large Companies Unit of the Ministry of Employment and Social Security is the competent body for issuing the residence permits. The Ministry of Interior is responsible for controlling matters of public order. It should also be highlighted that organisations from the business community, which conveyed the main concerns on foreign entrepreneurship in Spain, took part throughout the design phases of this specific policy to attract immigrant entrepreneurs. In order to adequately inform the target audience of the programme and of the procedure to be followed to apply for a visa or residence permit, an inter-ministerial website has been set up: On this website, interested parties can easily find out which body they should contact at each stage and which documents to submit. 25

26 Section 1: National frameworks for the admission of third-country nationals for business purposes Q11b. Which actor/institution is responsible for the promotion of the policy to attract immigrant entrepreneurs? Working together in a coordinated manner, the General Secretariat for Immigration and Emigration, the State Secretariat for Trade, the Ministry of the Interior, and the Ministry of Foreign Affairs and Cooperation have promoted an important information programme with a range of both public and private actors, with the aim of publicising and explaining the Law. Special emphasis has been placed on the action of those stakeholders who may have a multiplying effect on raising awareness on the contents of the law thorugh a capillary system. Business sector: Spanish Confederation of Business Organisations (CEOE), Spanish Expatriate Forum (FEEX), American Business Council, Chambers of Commerce. Business schools: IE, ESADE and IESE. Promotional initiatives implemented in the field of Business schools are essential, as these centres are one of the main sources of foreign entrepreneurship in Spain. Law firms, administrative agents and venture capital funds. Public-private bodies: Madrid Emprende, Barcelona Activa, Invest In Madrid. Network of consulates, trade offices and immigration offices. Q12a. Does your Member State have specific measures to attract immigrant business owners? Yes. Q12b. If yes, please complete the table below with regard to the measures established, if applicable, to attract immigrant business owners to Spain. Measures What do these specific measures entail? (Active promotion/information/ campaigns/events with third countries, etc.) Brief description of the measure Promotion has been carried out by identifying participants that can help in selecting potential immigrant entrepreneurs. A specific dissemination programme has been developed to target graduates from the most prestigious Business Schools, given their potential for entrepreneurship. In addition, informal collaborations have been established with institutions responsible for supporting entrepreneurs (Barcelona Activa, Invest in Madrid, Invest in Catalonia, Madrid Emprende, etc.) Finally, initiatives with other key players (venture capital funds) involved in entrepreneurship have been put into place. There is also a specific website, and all the information can be found on the Large Companies Unit web page. 26

27 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Measures Do procedural facilitations exist? What do these facilitations entail? (Reduced costs, shortened processing time, reduced documentary requirements, minimum residence period required (per year), possibility of renewal, etc.) Brief description of the measure In order to effectively facilitate the entry and stay of immigrant entrepreneurs, the following new features have been introduced in comparison with the general procedures for residence and self-employment permits: A specific streamlined procedure to process these permits has been drawn up. This procedure is characterised by: shorter processing times (visas are processed within 10 working days and residence permits within 20 days); centralised approach with a one-stop service centre and specialised staff: Large Companies and Strategic Groups Unit. This shortening of processing times entails a reduction in time and costs for the entrepreneur. The national employment situation (labour market test) does not apply, since their activities and projects contribute to economic growth, drive the internationalisation of the economy and provide added value. Residence permits are valid throughout the national territory. They are valid for two years. Once this period has lapsed, immigrant investors who are interested in residing in Spain for a longer length of time may request a renewal of two years. Do specific support measures exist? (Financial / logistic, support for applicants to establish a business plan, recognition of qualifications, etc.) Assistance is provided to prepare the business plan. Are there tax incentives? No tax incentives specifically aimed at immigrant entrepreneurs have been envisaged in Law 14/2013. Under the principle of equality, they may make use of incentives which are established for entrepreneurs in general. Are immigrant business owners granted access to social security? As a general requirement, foreign nationals must have public or private medical insurance for themselves and the members of their family, taken out with an insurance institution that is authorised to operate in Spain. They must also have sufficient economic resources for themselves and the members of their families for the period of residence. Are immigrant investors granted access to Spanish nationality? No special provisions regarding access to nationality have been established for immigrant entrepreneurs. As a result, the general rules are applied, which require a period of legal and continued residence of 10 years, as a general rule, good citizenship and a sufficient level of integration into Spanish society. 27

28 Section 1: National frameworks for the admission of third-country nationals for business purposes Measures Does the possibility exist for the investor to be accompanied by family members? Are they allowed to access the labour market? Brief description of the measure Law 14/2013 establishes a specific procedure (different from the Organic Law on Foreign Nationals, LOEX) for family reunification for spouses and children. In contrast to the general reunification procedure, one year s residence in Spain before reunification is not required. Family members have unrestricted access to the labour market. Others Q13a. Has Spain entered into any bilateral agreements, or other types of agreements, with third countries to attract immigrant business owners? At the bilateral level and as an expression of the growing link between migration and trade, Spain has signed Memoranda of Understanding with certain countries and is working towards signing similar instruments with other countries with which there is a mutual economic interest. For example, on 10 June 2014, Spain and Mexico signed a Memorandum of Understanding with the aim of making it easier for people in categories related to the business world, including entrepreneurs, to enter and stay in the respective territories for reasons of mutual economic interest. In order to achieve this goal, the parties committed to promoting the elimination of unjustified administrative obstacles and barriers that make it difficult for these groups to enter and stay, and efforts will be made to shorten the processing times of visas and permits as much as possible. Furthermore, work is also being carried out to sign similar instruments with other countries with which there is mutual economic interest. In the Latin American area, the Declaration of Veracruz signed at the XXIV Ibero-American Summit (held in Veracruz, Mexico) includes a commitment in point 5 to boost the mobility of entrepreneurs (among other groups) in Latin America. Q13b. Does Spain share information and coordinate its policies with other Member States? Does Spain consult other Member States on the issuing of the documents listed in question 15 to immigrant business owners? Other Member States are consulted regarding security requirements NATIONAL POLICIES IN RESPECT TO IMMIGRANT BUSINESS OWNERS: PRE-ARRIVAL STAGE (ADMISSION CRITERIA) AND STAY (RENEWAL) Q14a. Please indicate which of the criteria referred to in the table act as requirements to admit immigrant business owners and, if applicable, describe them. 28

29 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES If possible, please also explain whether the same criteria apply to third-country nationals admitted under a different immigration channel (family reunification, study, etc.) who wish to change their status to that of immigrant business owner (and, therefore, are already living in the country). Admission criteria Description Does this criterion apply to thirdcountry nationals already in the Member State s territory, who have another status but want to change it to that of immigrant investor? Evidence of entrepreneurial experience (experience in managing and running businesses, invoicing activities in the country of origin, etc.) Obtaining a visa or permit for entrepreneurs is dependent on first obtaining a favourable report in which the applicant s professional profile, amongst other characteristics, is assessed. Therefore, the evidence that applicants provide of their experience is one of the elements that is assessed in order to issue the relevant visa or permit. Yes. Law 14/2013 applies to both third-country nationals who reside outside Spain and those who are already in Spain (in possession of an authorisation to stay, a residence permit or an entrepreneur visa) provided that they are in the country legally. Minimum Education/ Professional skills Applicants must meet the legal requirements that are necessary to start the activity (as is the case for Spanish nationals). These requirements are laid down in the relevant sector-specific legislation and may demand a particular professional qualification for the performance of the activity in the case of regulated professions. Yes. Law 14/2013 applies to both third-country nationals who reside outside Spain and those who are already in Spain (in possession of an authorisation to stay, a residence permit or an entrepreneur visa) provided that they are in the country legally. Minimum amount of capital National legislation to attract immigrant entrepreneurs does not establish a minimum amount of capital needed for the entrepreneurial activity which is evaluated bu the Ministry of Economy and Competitiveness on a case-by-case basis. However, valuation of capital needed and more specifically of its financing, constitute part of the content of the business plan for the venture. Yes. Law 14/2013 applies to both third-country nationals who reside outside Spain and those who are already in Spain (in possession of an authorisation to stay, a residence permit or an entrepreneur visa) provided that they are in the country legally. 29

30 Section 1: National frameworks for the admission of third-country nationals for business purposes Admission criteria Description Does this criterion apply to thirdcountry nationals already in the Member State s territory, who have another status but want to change it to that of immigrant investor? Contribution to the economy / employment of the Member State (national interest, job creation, contribution to a specific sector, to innovation, introduction of new technologies, etc.) Issuing an entrepreneur visa/permit requires, in all cases, a report previously drafted by the Ministry of Economy and Competitiveness in which the venture s innovative nature and its special economic interest for Spain is assessed. In order to assess these aspects, the number of jobs that are intended to be created are considered as a priority, as well as other issues related to the contribution that the entrepreneurial activity will make to the Spanish economy: added value generated, innovation, investment opportunities associated with the activity. Yes. Law 14/2013 applies to both third-country nationals who reside outside Spain and those who are already in Spain (in possession of an authorisation to stay, a residence permit or an entrepreneur visa) provided that they are in the country legally. Project s business plan If a business plan is required, please complete the table in Q14b Language knowledge (certification, pre-entry test, mandatory courses, etc.) A business plan is required in order to issue the favourable report needed to grant the visa/permit.. Not required. Yes. Law 14/2013 applies to both third-country nationals who reside outside Spain and those who are already in Spain (in possession of an authorisation to stay, a residence permit or an entrepreneur visa) provided that they are in the country legally.. Not required. Age of applicants (minimum / maximum) Minimum age of 18. Minimum age of 18. Insurance requirement (personal and/or for the investment) Residence visa/residence permit applicants must have public or private health insurance, taken out with an insurance institution that is authorised to operate in Spain. Yes. Law 14/2013 applies to both third-country nationals who reside outside Spain and those who are already in Spain (in possession of an authorisation to stay, a residence permit or an entrepreneur visa) provided that they are in the country legally. 30

31 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Admission criteria Description Does this criterion apply to thirdcountry nationals already in the Member State s territory, who have another status but want to change it to that of immigrant investor? Security / background checks in place (fraud checks, tax avoidance, previous bogus activities, money origin, money laundering, etc.) Security checks have been stepped up under Law 14/2013. The provisions established in Law 10/2010, of 28 April, on the prevention of money laundering and the financing of terrorism apply. Therefore, the applicant must fulfil the obligations laid down in this law and prove the licit origin of the capital. All visa applications are subject to a consultation with the General Directorate of Police on security risks. Applicants must prove that they have not had a criminal record in the last 5 years. The applicant must also meet the relevant tax or Social Security obligations. Furthermore, the applicant must not be listed as someone to be rejected in the territory of countries with which Spain has signed an agreement in this respect. Applicants must have medical insurance. The Law confers powers on the authorities to perform the necessary checks to ensure that the requirements are fulfilled. Yes. Law 14/2013 applies to both third-country nationals who reside outside Spain and those who are already in Spain (in possession of an authorisation to stay, a residence permit or an entrepreneur visa) provided that they are in the country legally. Others Payment of the relevant fee is a requirement. Yes. Law 14/2013 applies to both third-country nationals who reside outside Spain and those who are already in Spain, provided that they are in the country legally. Q14b. In the event that a business plan is required, please complete the table below with a yes or no answer. If yes, please describe each element of the business plan. 31

32 Section 1: National frameworks for the admission of third-country nationals for business purposes Business plan Institution responsible for the assessment/selfevaluation Description If an application is submitted for a visa or residence permit, a favourable report must have been obtained that demonstrates that the entrepreneurial activity is of economic interest to Spain; in order for this report to be issued, the business plan for the venture must be presented. The institution in charge of issuing the report will assess this plan. If an application is made for a residence visa, the report is issued by the Economic and Trade Office in the geographical area in which the visa application is made. If an application is made for a residence permit, before submitting the application for the permit the general interest report must be requested from the General Directorate for International Trade and Investment of the Ministry of Economy and Competitiveness. Information required on legal aspects of the business (form of business, principal activity, secondary activities y). Information required on the commercial and financial aspects of the investment (type of business/services provided, nature of the investment, target groups, preliminary contracts, nature of the investment, performance indicators, feasibility analysis, etc.) Information on the planned legal form of the company must be provided. If several partners are taking part in the venture, each one s involvement must be included (as part of the plan s content); this requirement applies to those applying for a visa or permit as well as those who do not require one. The plan must include an analysis of the market, the service and product and its financing. The following points must be covered: The applicant s professional profile: their training and professional experience and a description of their involvement in the project. Description of the project: activity which is going to be carried out, start date, location, potential economic impact of the activity. Description of the product/service, indicating its innovative features. Market analysis: assessment of the market and the expected evolution, description of potential competitors, evaluation of potential consumers and analysis of supply and demand. Planned promotional activities and sales strategy. The number of jobs that will be created and the qualifications required for each one. The geographical location. Financing: sum of investment, sources of financing and financial plan. Duration of examination of the business plan Law 14/2013 does not identify a maximum deadline for the examination of the business plan. In practice and depending on the resources available, the requested report is issued within two to three weeks. The business plan is examined during this time. Documentation required (If a list exists, please report it here) Review period Other 32

33 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Q15. If the criteria for admission are satisfied, what initial document is issued? Please provide details on: Type of document (e.g. short-stay visa, authorisation to stay, long-stay visa, residence permit, etc.) Its duration Whether the duration is longer than the usual duration which applies to other categories of third-country nationals Whether its validity differs (and how) from its renewal. Two types of initial documents are envisaged: a) Residence visa for foresight activities National legislation provides the opportunity for immigrant entrepreneurs who are outside Spain and satisfy the aforementioned requirements to apply for a one-year residence visa with the sole or main purpose of completing the formalities prior to carrying out the entrepreneurial activity. b) Residence permit for entrepreneurs A specific residence permit for entrepreneurs must be requested for foreign nationals who intend to carry out or manage an economic activity as an entrepreneur. This permit is valid for a renewable period of two years, i.e. longer than the permit issued for residence and selfemployment. It is intended for entrepreneurs who are in Spain with a visitor s or residence permit or who are holders of an entrepreneur residence visa (without a requirement for a minimum period of stay before the permit is granted, provided justification is provided for the actual commencement of the business activity for which the visa was requested) or who are outside Spain. Furthermore, it is valid throughout the national territory, in contrast to the geographical limits of the residence and self-employment permit. Q16. Where and by which institution (inside the country or abroad) are the documents issued? (For example, diplomatic mission in the third country, other responsible representative, intermediary agency, etc.) The visa applications must be made at the Spanish Consulate in the country of origin or of residence. Applications for residence permits must be filed with the Large Companies and Strategic Groups Unit. Q17. Please complete the table below in relation to the registration of businesses/business activities launched by immigrant entrepreneurs. 33

34 Section 1: National frameworks for the admission of third-country nationals for business purposes Businesses started up by immigrant entrepreneurs are not registered. Q18. Requirements in case of extension of the initial document issued for the stay of immigrant investors. Please provide details of the type of document issued and its duration. Renewal criteria Description What are the requirements related to the purpose of stay (business) that need to be met in order to prolong/extend the initial authorisation of stay/long-stay visa/residence permit? The initial residence permit is valid for two years. After this period has ended, the immigrant entrepreneur can apply to have the residence permit for investors renewed for the same twoyear period, with a case-by-case analysis performed in all cases. The Large Companies Unit processes the renewal and checks that tax and social security obligations have been fulfilled, and also that an actual activity of special interest to Spain exists. Furthermore, this Unit can ask the General Directorate for International Trade and Investment to issue a report on the evolution and development of the business activity. Is there a requirement that a business remain active during the extension of permits? If so, what indicators are used to assess the organisation s activity? (Volume of turnover, amount of taxes paid, staff employed, compliance with the investment, etc.). Who assesses this activity? Are there time-related requirements during which a business needs to have been started up, taxes paid and staff employed in order to have the document s validity extended? For a permit renewal, the following points are assessed, among other items and depending on each project: The activity carried out and projects for the forthcoming financial years. Turnover. Financing obtained and the value of the investor s stock. The number of jobs created and their categories. The added value, innovation or investment generated for the Spanish economy. The Large Companies Unit may request a report on these points from the General Directorate for International Trade and Investment. The payment of taxes and the number of jobs created and their category are taken into consideration when deciding whether or not to renew permits. The existence of the enterprise activity and its Social Security Registration are subject to scrutiny OTHER BUSINESS PERSONS: OVERVIEW OF NATIONAL POLICIES (MAXIMUM 1 PAGE) This section examines the conditions for the admission of other third-country nationals who travel to the European Union for business reasons. These categories include (but are not limited to) the temporary admission of third-country nationals under interna- 34

35 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES tional agreements (for example, the Mode 4 categories included in the European Union trade agreements listed in Annex 2). These business persons may be admitted either on a short-stay or long-stay visa. Please indicate how these categories are defined by the national legislation (if such a definition exists), explaining whether specific policies concerning these groups have been implemented, whether they are admitted and registered as such in national practices or separately from those entering via different migration channels. Please also provide information on current admission criteria, including the length of their stay, any other admission criteria and any available information. Q19. How are the following categories (Annex 2) of business persons defined under the national legislation? 4 Categories Business visitors for establishment purposes (BVEP) Intra-corporate transferees (ICT) 4 Business sellers (BS) Definitions These persons would fall under the business visitor category, that is, by means of a tourist visa (90 days), and this category is not defined under Spanish legislation. Law 14/2013 regulates, together with other categories, the admission and residence of intra-corporate transferees (Article 73), which are defined as: Foreign nationals seconded to Spain in the context of an employment or professional relationship or for professional training reasons, with a company or group of companies established in Spain or another country. This definition is similar to the one used in Directive 2014/66/EU for intra-corporate transfers: intra-corporate transfer means the temporary secondment for occupational or training purposes of a third-country national who, at the time of application for an intra-corporate transferee permit, resides outside the territory of the Member States, from an undertaking established outside the territory of a Member State, and to which the third-country national is bound by a work contract prior to and during the transfer, to an entity belonging to the undertaking or to the same group of undertakings which is established in that Member State, and, where applicable, the mobility between host entities established in one or several second Member States. These persons would fall under the business visitor category, that is, by means of a tourist visa (90 days), and this category is not defined under Spanish legislation. 4 For intra-corporate transferees, please indicate where the scope of current legislation and the definition used therein differ from Directive 2014/66/EU on intra-corporate transferees. 35

36 Section 1: National frameworks for the admission of third-country nationals for business purposes Categories Definitions Independent professionals (IP) This category is covered in Article 73 of Law 14/2013, intra-corporate transfers: third-country nationals who are transferred to Spain in the context of a professional relationship with a company or group of companies established in Spain or in another country. It is stipulated that they hold the relevant visa in accordance with the duration of the transfer and an intra-corporate transfer residence permit, which will be valid throughout the national territory. Contractual services suppliers (CSS) This category is covered in Article 73 of Law 14/2013, intra-corporate transfers. Third-country nationals seconded to Spain in the context of an employment or professional relationship or for professional training reasons, with a company or group of companies established in Spain or another country, must hold the relevant visa in accordance with the duration of the transfer and an intra-corporate transfer residence permit, which will be valid throughout the national territory. Graduate trainees (GT) Others This category is covered in Article 73 of Law 14/2013, which allows intra-corporate transfers for training reasons. It is not restricted to recent graduates and is even applicable to other company staff members. The definition states that third-country nationals seconded to Spain in the context of an employment or professional relationship or for professional training reasons, with a company or group of companies established in Spain or another country, must hold the relevant visa in accordance with the duration of the transfer and an intra-corporate transfer residence permit, which will be valid throughout the national territory. Q20. Is there a specific policy (programme or scheme) for other business persons as defined in this study? Complete only the sections that are relevant to the national context. Yes. However, there are no specific policies for each category of other business persons ; rather, there is a new vision of migration policy which is geared, through facilitation, at boosting the contribution that immigration makes to the economy, with the awareness of the growing link between trade and migration policy. Mode 4 is defined as the transfer of natural persons to another country to provide services (models or consultants) on a temporary basis. It therefore entails the commercial movement of the supplier. The GATS annex which addresses Mode 4 indicates that issues involving residence and work visas or permits are not negotiated within the framework of trade agreements. Moreover, it indicates that the Annex on Mode 4 does not affect access to the labour market or the rules on nationality, residence or employment on a permanent basis. However, it is increasingly common to find facilitation of visa processes in the requests made under Mode 4. This was one of the elements which prompted the analysis of Span- 36

37 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES ish legislation on attracting investment and international talent, an analysis process which was undertaken by the inter-ministerial working group and led to the adoption of Law 14/2013. This Law is a key element in the negotiation of trade agreements, providing solutions to other parties requests. In this respect, a large number of persons who fall under the other business persons title can be moved to one of the categories provided by Law. Categories of other business persons Is there a specific policy for this category? Is it based on multilateral/bilateral trade agreements with third countries? Name of policy / programme What are the policy s main objectives (include information on national priority sectors/geographical areas/third countries) Are there any quotas? Business visitors for establishment purposes (BVEP) No. The stay visa is used for this category of business persons. It is regulated by the EU Schengen regulations. Regulation (EC) 810/2009 (Visa Code), and Regulation (EU) 265/2010 amending the Convention implementing the Schengen Agreement. No Intra-corporate transferees (ICT) Yes. There is specific legislation for this category. Law 14/2013 of 27 September on support for entrepreneurs and their internationalisation. Title V, Section 2: International mobility. The Law was established with a dual objective: To support economic growth by means of the internationalisation of Spanish companies and, as a result, to create jobs; To make it easier for a series of categories of skilled and highly skilled migrants to enter and stay in Spain for reasons of economic interest. No Business sellers (BS) No. The stay visa is used for this category of business persons. It is regulated by the EU Schengen regulations. Independent professionals (IP) Yes. There is specific legislation for this category. Law 14/2013 of 27 September on support for entrepreneurs and their internationalisation. Title V, Section 2: International mobility. The Law was established with a dual objective: To support economic growth by means of the internationalisation of Spanish companies and, as a result, to create jobs; To make it easier for a series of categories of skilled and highly skilled migrants to enter and stay in Spain for reasons of economic interest. No Contractual services suppliers (CSS) Yes. There is specific legislation for this category. Law 14/2013 of 27 September on support for entrepreneurs and their internationalisation. Title V, Section 2: International mobility. The Law was established with a dual objective: To support economic growth by means of the internationalisation of Spanish companies and, as a result, to create jobs; To make it easier for a series of categories of skilled and highly skilled migrants to enter and stay in Spain for reasons of economic interest. No 37

38 Section 1: National frameworks for the admission of third-country nationals for business purposes Categories of other business persons Is there a specific policy for this category? Is it based on multilateral/bilateral trade agreements with third countries? Name of policy / programme What are the policy s main objectives (include information on national priority sectors/geographical areas/third countries) Are there any quotas? Graduate trainees (GT) Yes. There is specific legislation for this category. Law 14/2013 of 27 September on support for entrepreneurs and their internationalisation. Title V, Section 2: International mobility. The Law was established with a dual objective: To support economic growth by means of the internationalisation of Spanish companies and, as a result, to create jobs; To make it easier for a series of categories of skilled and highly skilled migrants to enter and stay in Spain for reasons of economic interest. No Other (please describe Q21. Considering the specific policies referred to in the previous question, what are the main actors and institutions involved in the development and implementation of policies to attract other business persons? If multiple authorities are involved, how are they coordinated? Is there an official mandate, for example an action plan governing the involvement of these authorities? Which actor/institution is responsible for the promotion of the policy abroad? Categories Actors/institutions involved in the development of these policies Actors/ institutions involved in the implementation of these policies If multiple authorities are involved, how do they coordinate? Is there an official mandate governing this coordination? Actors/institutions responsible for the promotion of this policy abroad Business visitors for establishment purposes (BVEP) Ministry of Foreign Affairs and Cooperation. Ministry of the Interior. Ministry of Employment and Social Security. Ministry of Economy and Competitiveness. Ministry of Foreign Affairs and Cooperation. Ministry of the Interior. Ministry of Foreign Affairs and Cooperation. Regulation (EC) 810/2009 (Visa Code), and Regulation (EU) 265/2010 amending the Convention implementing the Schengen Agreement. Ministry of Foreign Affairs and Cooperation. 38

39 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Actors/institutions involved in the development of these policies Actors/ institutions involved in the implementation of these policies If multiple authorities are involved, how do they coordinate? Is there an official mandate governing this coordination? Actors/institutions responsible for the promotion of this policy abroad Categories Intracorporate transferees (ICT) Inter-ministerial working group comprising representatives from: State Secretariat for Trade of the Ministry of Economy and Competitiveness. Ministry of Foreign Affairs and Cooperation. Ministry of the Interior. Ministry of Employment and Social Security. The same interministerial working group. Participation is outlined in Law 14/2013. Furthermore, the inter-ministerial group is in permanent contact in order to solve any issues that arise and to continuously improve the system. The organisation is established in Law 14/2013. Working together in a coordinated manner, the General Secretariat for Immigration and Emigration, the State Secretariat for Trade and the Ministry of Foreign Affairs and Cooperation have promoted a significant number of information sessions with both public and private actors, geared at publicising and explaining the Law, which ultimately facilitates its correct implementation. These initiatives have been implemented both nationally and abroad. In relation to this field: Spanish Embassies or Consulates. Spanish Economic and Trade Offices abroad. Invest In Spain. Business sellers (BS) Ministry of Foreign Affairs and Cooperation. Ministry of the Interior. Ministry of Employment and Social Security. Ministry of Economy and Competitiveness. Ministry of Foreign Affairs and Cooperation. Ministry of the Interior. Ministry of Foreign Affairs and Cooperation. Regulation (EC) 810/2009 (Visa Code), and Regulation (EU) 265/2010 amending the Convention implementing the Schengen Agreement. Ministry of Foreign Affairs and Cooperation. Independent professionals (IP) Inter-ministerial working group comprising representatives from: State Secretariat for Trade of the Ministry of Economy and Competitiveness. Ministry of Foreign Affairs and Cooperation. Ministry of the Interior. Ministry of Employment and Social Security. The same interministerial working group. Participation is outlined in Law 14/2013. Furthermore, the interministerial group is in permanent contact in order to solve any issues that arise and to continuously improve the system. The organisation is established in Law 14/2013. Working together in a coordinated manner, the General Secretariat for Immigration and Emigration, the State Secretariat for Trade and the Ministry of Foreign Affairs and Cooperation have promoted a significant number of information sessions with both public and private actors, geared at publicising and explaining the Law, which ultimately facilitates its correct implementation. These initiatives have been implemented both nationally and abroad. In relation to this field: Spanish Embassies or Consulates. Spanish Economic and Trade Offices abroad. Invest In Spain. 39

40 Section 1: National frameworks for the admission of third-country nationals for business purposes Categories Actors/institutions involved in the development of these policies Actors/ institutions involved in the implementation of these policies If multiple authorities are involved, how do they coordinate? Is there an official mandate governing this coordination? Actors/institutions responsible for the promotion of this policy abroad Contractual services suppliers (CSS) Inter-ministerial working group comprising representatives from: State Secretariat for Trade of the Ministry of Economy and Competitiveness. Ministry of Foreign Affairs and Cooperation. Ministry of the Interior. Ministry of Employment and Social Security. The same inter-ministerial working group. Participation is outlined in Law 14/2013. Furthermore, the interministerial group is in permanent contact in order to solve any issues that arise and to continuously improve the system. The organisation is established in Law 14/2013. Working together in a coordinated manner, the General Secretariat for Immigration and Emigration, the State Secretariat for Trade and the Ministry of Foreign Affairs and Cooperation have promoted a significant number of information sessions with both public and private actors, geared at publicising and explaining the Law, which ultimately facilitates its correct implementation. These initiatives have been implemented both nationally and abroad. In relation to this field: Spanish Embassies or Consulates. Spanish Economic and Trade Offices abroad. Invest In Spain. Graduate trainees (GT) Inter-ministerial working group comprising representatives from: State Secretariat for Trade of the Ministry of Economy and Competitiveness. Ministry of Foreign Affairs and Cooperation. Ministry of the Interior. Ministry of Employment and Social Security. The same interministerial working group. Participation is outlined in Law 14/2013. Furthermore, the interministerial group is in permanent contact in order to solve any issues that arise and to continuously improve the system. The organisation is established in Law 14/2013. Working together in a coordinated manner, the General Secretariat for Immigration and Emigration, the State Secretariat for Trade and the Ministry of Foreign Affairs and Cooperation have promoted a significant number of information sessions with both public and private actors, geared at publicising and explaining the Law, which ultimately facilitates its correct implementation. These initiatives have been implemented both nationally and abroad. In relation to this field: Spanish Embassies or Consulates. Spanish Economic and Trade Offices abroad. Invest In Spain. Others 1.6. NATIONAL POLICIES REGARDING OTHER BUSINESS PERSONS: PRE-ARRIVAL STAGE (ADMISSION CRITERIA) AND STAY (RENEWAL) Q22. Please indicate which of the criteria referred to in the table act as requirements to admit other business persons from third countries. Use the last column to indicate useful information on any pre-entry formality which may be required (labour market test, proof of minimum period of employment, evidence of commitment to return to their country after the temporary stay, minimum education/experience, quotas, age requirement, insurance requirement, etc.). 40

41 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Categories Are these categories included in your systems (under a different name)? (Yes/No) If yes, under which name are they registered in your systems? Maximum duration of their stay Document issued when admitting the person Is there a (exhaustive) list of admission criteria? If yes, please indicate the criteria Business visitors for establishment purposes (BVEP) No. 90 days in 6 months. Tourist visa. The provisions of the Schengen Agreement. Intra-corporate transferees (ICT) No. 5 years. After this period and in the case of actual residence, an application for long-term residence may be made. Intra-corporate transfer residence permit. Yes. Documentary proof must be provided. Age: over 18 (copy of current passport or travel document). No criminal record. Must not be listed as someone to be rejected in the territory of countries with which there is an agreement in this respect. Health insurance. Sufficient economic resources. Payment of fee. Existence of a real business activity and, if applicable, of the business group. Tertiary qualification or equivalent or, where applicable, minimum professional experience of 3 years. The existence of a prior continuous employment or professional relationship of 3 months with one or several companies in the group. Documentation from the company which provides proof of the transfer or transfer letter. Business sellers (BS) No. 90 days in 6 months Tourist visa The provisions of the Schengen Agreement. Independent professionals (IP) Yes. Under the intracorporate transfer category (Art. 73 of Law 14/13). 5 years. After this period and in the case of actual residence, an application for longterm residence may be made. Intra-corporate transfer residence permit. Yes. Documentary proof must be provided: Age: over 18 (copy of current passport or travel document). No criminal record. Must not be listed as someone to be rejected in the territory of countries with which there is an agreement in this respect. Health insurance. Sufficient economic resources. Payment of fee. Existence of a real business activity and, if applicable, of the business group. Tertiary qualification or equivalent or, where applicable, minimum professional experience of 3 years. The existence of a prior and continuous employment or professional relationship of 3 months with one or several companies in the group. Documentation from the company which provides proof of the transfer. Contract. 41

42 Section 1: National frameworks for the admission of third-country nationals for business purposes Categories Are these categories included in your systems (under a different name)? (Yes/No) If yes, under which name are they registered in your systems? Maximum duration of their stay Document issued when admitting the person Is there a (exhaustive) list of admission criteria? If yes, please indicate the criteria Contractual services suppliers (CSS) Yes. Under the intracorporate transfer category (Art. 73 of Law 14/13). 5 years. After this period and in the case of actual residence, an application for longterm residence may be made. Intra-corporate transfer residence permit. Yes. Documentary proof must be provided: Age: over 18 (copy of current passport or travel document). No criminal record. Must not be listed as someone to be rejected in the territory of countries with which there is an agreement in this respect. Health insurance. Sufficient economic resources. Payment of fee. Existence of a real business activity and, if applicable, of the business group. Tertiary qualification or equivalent or, where applicable, minimum professional experience of 3 years. The existence of a prior and continuous employment or professional relationship of 3 months with one or several companies in the group. Documentation from the company which provides proof of the transfer. Contract. Graduate trainees (GT) Yes. Under the intracorporate transfer category (Art. 73 of Law 14/13). 5 years. After this period and in the case of actual residence, an application for longterm residence may be made. Intra-corporate transfer residence permit. Yes. Documentary proof must be provided: Age: over 18 (copy of current passport or travel document). No criminal record. Must not be listed as someone to be rejected in the territory of countries with which there is an agreement in this respect. Health insurance. Sufficient economic resources. Payment of fee. Existence of a real business activity and, if applicable, of the business group. Tertiary qualification or equivalent or, where applicable, minimum professional experience of 3 years. The existence of a prior and continuous employment or professional relationship of 3 months with one or several companies in the group. Documentation from the company which provides proof of the transfer. Contract. Others 42

43 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Q23. Criteria to be met by other business persons in case of extension of the initial document issued. Please provide details of the type of document issued and its duration. Categories of other business persons Business visitors for establishment purposes (BVEP) Intra-corporate transferees (ICT) Business sellers (BS) What are the requirements related to the purpose of stay (business) that need to be met in order to prolong/extend the initial documents issued? They must prove that a relationship exists with a Spanish company, by means of a letter or other documents. Demonstrate that the conditions which enabled them to enter are still valid. They must prove that a relationship exists with a Spanish company, by means of a letter or other documents. Independent professionals (IP) Demonstrate that the conditions which enabled them to enter are still valid. Contractual services suppliers (CSS) Graduate trainees (GT) Demonstrate that the conditions which enabled them to enter are still valid. Demonstrate that the conditions which enabled them to enter are still valid. Others 43

44 Section 2: Measures to prevent misuse/abuse of immigration channels for business purposes SECTION 2: MEASURES TO PREVENT MISUSE/ABUSE OF IMMIGRATION CHANNELS FOR BUSINESS PURPOSES This section aims to provide an overview of the measures adopted by Member States for monitoring, detecting and preventing misuse of the migration channels in place for investors, entrepreneurs and other business persons and to explore and map the specific mechanisms in place. Please describe the procedures established and the challenges associated with the monitoring, detection and prevention of misuses, and distinguish where relevant between the different categories (if the mechanisms are different). Finally, this section aims to identify the criteria for withdrawing the permits issued. Q24. Please complete the table with respect to the prevention and detection of misuse and abuse of immigration channels for immigrant investors, business owners and other business persons at the admission stage and during stay/residence. Does your national legislation provide for a definition of misuse and/or abuse? Are they defined differently? If no definition is provided by the legislation, how are they defined in practice? Immigrant investors It is defined in the negative: it establishes a reinforced monitoring to confirm that the conditions which gave rise to the visa or permit being previously granted are maintained, that the funds have a licit origin and that security norms are respected. Business owners It is defined in the negative: it establishes a reinforced monitoring to confirm that the conditions which gave rise to the visa or permit being previously granted are maintained, that the funds have a licit origin and that security norms are respected. Other business persons It is defined in the negative: it establishes a reinforced monitoring to confirm that the conditions which gave rise to the visa or permit being previously granted are maintained, that the funds have a licit origin and that security norms are respected. What are the specific measures in place to monitor, detect and prevent misuse/abuse at the admission stage? (These measures are in addition to the admission criteria to be satisfied as reported under section 1.2). Law 14/2013 establishes specific measures to avoid cases of abuse. 1. Spanish legislation imposes compliance with the obligations established in Law 10/2010, of 28 April, on the prevention of money laundering and the financing of terrorism as a general requirement for admission. Law 14/2013 establishes specific measures to avoid cases of abuse. 1. Spanish legislation imposes compliance with the obligations established in Law 10/2010, of 28 April, on the prevention of money laundering and the financing of terrorism as a general requirement for admission. Law 14/2013 establishes specific measures to prevent situations of misuse for Mode 4 categories to which the intra-corporate transfer system is applicable. 1. In all cases, the thirdcountry nationals must meet their tax obligations. 44

45 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Immigrant investors Business owners Other business persons 2. In all cases, the thirdcountry nationals must meet their tax obligations. 3. In all cases, third-country nationals must meet their Social Security obligations. In this respect, the immigration authorities check registrations with the social security. 4. The requirement to have a prior favourable report drawn up by the competent business authorities guarantees the application of this special admission system for third-country nationals who intend to carry out business ventures with genuine general interest for Spain and not other projects which lack such character. 5. In addition, they must have sufficient resources during their stay in the country, without the need to use the health-care systems, and take out health insurance. 6. Public order and security checks are carried out. 2. In all cases, the thirdcountry nationals must meet their tax obligations. 3. In all cases, the thirdcountry nationals must meet their Social Security obligations. In this respect, the immigration authorities check registrations with the social security. 4. The requirement to have a prior favourable report drawn up by the competent business authorities guarantees the application of this special admission system for third-country nationals who intend to carry out an innovative entrepreneurial activity with special economic interest for Spain and not other projects which lack such character. It should be remembered that this type of permit, which is selective in nature, is for those activities which satisfy the characteristics established in the Law and not for any type of self-employment activity. 5. In addition, they must have sufficient resources during their stay in the country, without the need to use the healthcare systems, and take out health insurance. 6. Public order and security checks are carried out. 2. In all cases, the thirdcountry nationals must meet their Social Security obligations. In this respect, the immigration authorities check registrations with the social security. 3. In order to prevent misuse of this category, the following are checked in all cases: the existence of a real business activity, the qualifications or experience of the transferred person, the existence of a prior and continuous employment or professional relationship of three months with companies belonging to a group and documentary proof of the transfer. The aim of such checks is to prevent cases of misuse or fraud in this category. 5. In addition, they must have sufficient resources during their stay in the country, without the need to use the health-care systems, and take out health insurance. 6. Public order and security checks are carried out. 45

46 Section 2: Measures to prevent misuse/abuse of immigration channels for business purposes Immigrant investors Business owners Other business persons What are the entities responsible for monitoring of compliance? (Labour Inspectorate, Labour Exchange office, Tax authorities, Ministry of Interior, Migration services). Does a national referral mechanism exist? (Yes/ No). If yes, how is information shared among stakeholders? Is there an obligation to inform about misuse/ abuse identified by another institution? (Migration services, police, tax authority, etc.). What is the frequency of control? The entities responsible vary according to the area to which the responsibility applies: Unit for Large Companies for maintenance of conditions. Labour Inspectorate for employment and social security issues. State Tax Administration Authority for tax issues. Ministry of the Interior for issues related to security and public order. Ministry of Economy, competent entity for issuing reports. At present, there is no mechanism which enables instantaneous communication on a national level. On the other hand, authorities have always had the duty to collaborate with each other. Therefore, in employment and social issues, the Inspectorate informs the migration authorities of potential offences detected and vice versa. The Unit for Large Companies continually monitors for maintenance of conditions. The entities responsible vary according to the area to which the responsibility applies: Unit for Large Companies for maintenance of conditions. Labour Inspectorate for employment and social security issues. State Tax Administration Authority for tax issues. Ministry of the Interior for issues related to security and public order. Ministry of Economy, competent entity for issuing reports. At present, there is no mechanism which enables instantaneous communication on a national level. On the other hand, authorities have always had the duty to collaborate with each other. Therefore, in employment and social issues, the Inspectorate informs the migration authorities of potential offences detected and vice versa. The Unit for Large Companies continually monitors for maintenance of conditions. The entities responsible vary according to the area to which the responsibility applies: Unit for Large Companies for maintenance of conditions. Labour Inspectorate for employment and social security issues. State Tax Administration Authority for tax issues. Ministry of the Interior for issues related to security and public order. Ministry of Economy, competent entity for issuing reports. At present, there is no mechanism which enables instantaneous communication on a national level. On the other hand, authorities have always had the duty to collaborate with each other. Therefore, in employment and social issues, the Inspectorate informs the migration authorities of potential offences detected and vice versa. The Unit for Large Companies continually monitors for maintenance of conditions. What are the main sectors affected? (Real estate, transfer of capital, national funds / bonds, business investments, etc.). Please list the top three. No sectors particularly affected by abuse of the immigrant investor category have been detected. No sectors particularly affected by abuse have been detected. No sectors particularly affected by abuse have been detected. 46

47 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Immigrant investors Business owners Other business persons If abuse/misuse is detected, what penalties are imposed? In case of infringement of the obligation to maintain same conditions, the visa or permit would be withdrawn in compliance with Law 14/2013. For general legal infringements, the Law on aliens would be applied. In case of infringement of the obligation to maintain same conditions, the visa or permit would be withdrawn in compliance with Law 14/2013. For general legal infringements, the Law on aliens would be applied. In case of infringement of the obligation to maintain same conditions, the visa or permit would be withdrawn in compliance with Law 14/2013. For general legal infringements, the Law on aliens would be applied. What other circumstances are taken into consideration for the withdrawal or nonrenewal of the permits issued? The elements which are considered when making a withdrawal or nonrenewal decision are: The maintenance of the investment. Non-fulfilment of conditions under which the permit was granted. Fraudulently obtaining a permit or falsification or manipulation of documents. Residence with a purpose other than the one authorised. No registration in Social Security scheme. The elements which are considered when making a withdrawal or nonrenewal decision are: The assessment of the activity and verification of the fulfilment of tax and social security obligations (see Q.18). Non-fulfilment of conditions under which the permit was granted. Fraudulently obtaining a permit or falsification or manipulation of documents. Residence with a purpose other than the one authorised. No registration in Social Security scheme. The elements which are considered when making a withdrawal or nonrenewal decision are: Non-fulfilment of conditions under which the permit was granted. Fraudulently obtaining a permit or falsification or manipulation of documents. Residence with a purpose other than the one authorised. Creation of the receiving company with the main purpose of facilitating the entry of third-country nationals. In cases of penalties imposed on the receiving company for undeclared work or illegal employment. No registration in Social Security scheme. Q25a. Is there any evidence of the effectiveness of the measures used to monitor, detect and prevent misuse/abuse? What challenges are faced in this area (lack of resources, lack of cross-analysis, access to information)? Yes 47

48 Section 2: Measures to prevent misuse/abuse of immigration channels for business purposes Q25b. If yes, please indicate which category the evidence refers to and summarise the main findings here, including a reference to the source in an annex to this study. As the Law includes consistent guarantees, in practice no significant number of cases of abuse or fraudulent use of authorizations have been detected. Consequently, measures adopted to prevent abuse or fraudulent use are effective. 48

49 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES SECTION 3: EVALUATION OF POLICIES TO ADMIT THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES, CHALLENGES AND BARRIERS This section aims to analyse the impact of policies to admit immigrant investors (section 3.1), business owners (section 3.2) and other business people (section 3.3) on the economy and society. In particular, the questions below aim to understand to what extent such policies have been evaluated and what results have been achieved IMMIGRANT INVESTORS Q26a. Are there any evaluations or studies that analyse the effectiveness of national policies to attract immigrant investors? Yes. Law 14/2013 itself establishes an obligation to prepare an annual report of assessment by the Mobility Section to the Council of Ministers. This report is prepared by the Ministry of Employment and Social Security, through the General Secretariat for Immigration and Emigration, together with the Ministry of Foreign Affairs and Cooperation, Ministry of the Interior and Ministry of Economy and Competitiveness. In addition to this national report, other reports or studies have been drafted on this subject at an international level, specifically the OECD Services Trade Restrictiveness Index (STRI). Q26b. If yes, please summarise the main findings here and include a reference to the evaluation or study in the annex to this study. RESULTS OF THE LAW FOR ENTREPRENEURS compiled in the Report on the Status of the Implementation of Section 2 of Title V of Law 14/2013, of 27 September, on support for entrepreneurs and their internationalisation, one year after its adoption. The number of visas issued and permits granted can be used as an indicator to evaluate Law 14/2013. As at 31 December 2014, a total of permits (visas and authorizations for immigrants and members of their families) had been granted under this law, with 9.5% of these in the immigrant investor category (a total of 530). 49

50 Section 3: Evaluation of policies to admit third-country nationals for business purposes, challenges and barriers 5 Type of visas and permits Total number of people who were granted residence 5 Investors (*) 530 Family members TOTAL (*) Investor Breakdown Granted Capital 29 Real Property 490 Business venture 12 The amount of investment and the number of jobs created makes it possible to analyse the economic and social impact of the specific business-related migration attraction policy. Between 30/09/2013 and 31/12/2014, the estimated amount of investment received reached e million, with investment in property sales totalling e 369,7 million, while investment in financial assets amounted to e 37,5 million 6. Type of investment Amount of investment Millions e Investors in moveable capital 37,5 Investors in real property 369,7 Investors in a business venture 39,5 Total investment linked to immigrant investors 407,3 Total investment in Law 14/2013 categories e 694 On the basis of the type of investment, it is possible to make the following analysis. Investors in real property After the said Law entered into force up to 31 December 2014, 490 visas/authorizations have been granted fo real estate investors, which means 92,5 % of visas and authorizations granted to foreign investors. Considering the amount of the investment, real estate investments represent 82% of total investment made by foreign investors. 5 The number of family members includes the family members in all the categories provided in the scope of application of Law 14/ Source MAEC. 50

51 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES As regards the origin of the investment, the main nationalities are Russia and China, representing 68,8% of the visa/authorizations granted to this category, (34,5 Russia, 34,3 China). They were followed by citizens from Ukraine (2.9 %), Egypt (2.7%), Lebanon (2.2%) and Venezuela (2.0%). It should be emphasised that the 7 main countries from which investors originated represent 80.4% of the total of visas/authorizations granted, and 80.5 % of the investment in real property. Source: MAEC. Table 4. Investment in real property. 30 sept dec Spread by country of origin Country Number % of total Euros % of total Russian Federation China Ukrania Egypt Lebanon Venezuela United States TOTAL 7 main countries Remainder TOTAL With regard to the destination of the investment, the province of Barcelona is the main destination for foreign nationals who have bought real property under this law, representing 40.41% of the total permits and million euros (38.2 % of total amount of investment in real property). Barcelona is followed by the province of Malaga, which accounts for 20.2% of the total number of this type of permit (76.4 million euros and 20.7% of the total investment in real property). Madrid is the third most popular destination with 15.1% of the total number of this type of permit and 54.5 million euros, that is, 14.7% of the total investment in real property. These three provinces account for 75.7% of the total permits granted for investment in real property. 51

52 Section 3: Evaluation of policies to admit third-country nationals for business purposes, challenges and barriers Spread by investment destination Province Number % of total Source: MAEC. Barcelona Málaga Madrid Alicante Girona Valencia Remainder TOTAL The graph below shows the evolution in the number of visas granted to investors in real property in the past fifteen months. Investors in moveable capital 8.3% of the total investment received corresponds to investment in financial assets (e 37,543,696). Regarding the total of visas/authorizations granted, 44.8% of these investors are Russian nationals, followed by Ukrainian nationals who represent 17.2%. 52

53 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Table 6. Investment in financial assets September december 2014 Spread by country of origin Country Number % of total Euros % s/total Russian Federation Ukraine Azerbaijan China Colombia United States Lebanon México Refugee Tunicia Venezuela TOTAL Source: MAEC. Investors in general interest projects 2.3% of the total investor visas granted correspond to investors in general interest projects. Table 7. Investments in business ventures sep dec Source: MAEC. Spread by country of origin Country Number % of total Iraq Egypt China United States Russian Federation Phillipines India Mexico Uzbekistan TOTAL

54 Section 3: Evaluation of policies to admit third-country nationals for business purposes, challenges and barriers As mentioned throughout the report, in the case of investment in a general interest project, in order for investors to be able to apply for a residence visa, they must have a report which states that the activity to be carried out in Spain is deemed to be of general interest. The Economic and Trade Offices in the applicant s country of origin prepare these reports. On the basis of the information evaluated when preparing these reports, the following may be stated: as at 31 December 2014, the General Directorate for International Trade and Investment had issued 18 favourable reports, with estimated investment in the next 5 years of 39.5 million euros and an estimate of 374 new jobs. OECD evaluation: STRI index In addition, this Law has been indirectly evaluated by the OECD. The OECD Services Trade Restrictive Index (STRI) was presented during the OECD Ministerial Council Meeting held on 6 and 7 May The OECD s STRI listed Spain as an example of a liberal country: The general regulations applying to all sectors of the economy are quite liberal. There are no generic impediments to foreign investment. Public procurement regulations rely on the principle of non-discrimination. Spain is open to trade through the movement of natural persons. In the light of these results, Spain: has a lower Index than the average in 15 of the 18 sectors analysed. is the country with the least restrictions in Commercial Banking and Commercial Distribution. occupies one of the top 6 positions in 8 of the 18 sectors in the study. Such results have been facilitated, to a certain extent, by the important role that Law 14/2013 has played, as evidenced by the analysis of the results obtained in the sectors studied before and after the law entered into force in relation to the parameter of restrictions on the movement of persons. 54

55 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES STRI Score in Spain by Sectors Worst results in the 7 pilot sectors: finalised before the law for entrepreneurs entered into force Best results in the sectors which were evaluated with the law for entrepreneurs in force Source: OECD Services Trade Restrictiveness Index (STRI): Spain. Available at PRESS ARTICLES The significant improvement of Spain s position in the Services Trade Restrictiveness Index (STRI) has been reported in the financial press. The OECD applauds Spain s openness to trade in the services sector MADRID, 8 May. (EUROPA PRESS) - The new Services Trade Restrictiveness Index (STRI) of the OECD has listed Spain as an example of a liberal country, as it has a lower STRI score than the average in 15 of the 18 sectors analysed. The new index, which was presented during the OECD Ministerial Conference held on 6 and 7 May, provides an up-to-date snapshot of the barriers to trade in 18 services sectors in 40 countries representing 80% of world trade in services. With regard to the analysis of Spain, it is inferred that the general regulations applied to all sectors are quite liberal and that there are no generic impediments to foreign investment. 55

56 Section 3: Evaluation of policies to admit third-country nationals for business purposes, challenges and barriers Furthermore, public procurement regulations rely on the principle of non-discrimination and Spain is open to trade through the movement of natural persons. Spain is also the country with the least restrictions in two sectors commercial banking and commercial distribution and it appears in the 6 top positions in 8 of the 18 sectors studied. The services sector is important for the Spanish economy, as 59% of the added value from exports comes from services, which is significantly above the OECD average of just under 50%. The Secretary-General of the OECD, Angel Gurría, has stated that the services markets can make a significant contribution to growth with a view to the 2% growth target for the G20 economies. This new index elaborated by the OECD will help countries to compare their results, trade negotiators to eliminate bottlenecks, economic policymakers to identify priority areas for reform and companies to identify the requirements that they must meet in order to access markets abroad. The index comprises a regulatory database that is available online and contains the legislation applicable to trade in services in each country in various sectors and a series of indexes which quantify the restrictions to trade by grouping them in five categories. The indices use scores between zero and one, with zero representing totally liberalised trade and investment, while one would signify a sector which is completely closed to outside trade. In general terms, the index shows that the average levels of restrictiveness are significant and vary among the countries, which means that there are opportunities for liberalisation and the implementation of best practises in all of them. The most restrictive sectors on a global scale are air transport, legal services and accounting services, which are all services that facilitate trade and in which increased openness could provide potential benefits. Obstacles to foreign ownership are very widespread among the infrastructure sectors, while restrictions to the movement of persons and nationality requirements are the main barriers to trade in professional services. In the case of construction services, barriers to public procurement are the major obstacles. The press has also reported on the positive effects of the Law for Entrepreneurs and of the new approach to Spanish migration policy, which is making an effective contribution to the economy by creating approximately 800 new jobs linked to investment or business ventures. In addition, the news also covers the positive feedback that the Law has received from various businesses or forums. 56

57 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Visas for highly skilled professionals double in six months 13/07/2014 EFE. Ruth del Moral Madrid, 13 July (EFECOM).- The number of highly skilled third-country professionals who have secured a residence permit or visa that entitles them to work in Spain has doubled in the last six months, after the new Law on support for entrepreneurs and internationalisation came into force. According to data from the State Secretariat for Trade, to which EFE has had access, the number of permits for workers with this type of profile reached 513 by 30 June, an increase of 137.4% compared to the previous six months. This figure, added to the 72 permits granted to researchers and 31 to entrepreneurs, makes a total of 650 permits, while total visas for intra-corporate transfers are about 500 and have increased by 64.5% in the last six months. The government has granted a total of almost 2,000 permits or visas out of the 2,500 applications filed, including those linked to non-eu investors who purchased property for a minimum value of 500,000 euros or who have bought government debt for over 2 million euros. Sources from the Ministry of Economy have stated that with only the general interest projects submitted up until June by entrepreneurs, 800 jobs would be created. The Deputy Director-General of International Trade in Services and Investments of the Ministry of Economy, Luis Oscar Moreno, has told EFE that Spain s legislation was hostile towards investment and that through the new law it is possible to incorporate migration as an element of mobility which boosts competitiveness. He emphasised that the legislation encourages talent to be attracted to Spanish business schools, which are world leaders and allows third-country students to complete a master s degree and undertake a project without any bureaucratic barriers, since they are granted a residence permit in less than 20 days. It is impossible to attract investment if there are barriers for managers, entrepreneurs and talent, he pointed out while stressing that the projects of interest concern all sectors, from technology and mobile devices to engineering, and even the pharmacy, computer or sport sectors. In fact, the director of the professional careers business department at the IESE Business School, Javier Muñoz, told EFE that with this law, Spain has become a magnet for talent and explained that interest in undertaking an entrepreneurial venture has grown among students from Asia, Latin America and the USA. He noted that the new legislation makes it easier for them to launch their ventures without requiring a minimum amount of investment. Amparo de San José, director of the Business Angels network at IESE, added that the projects are increasingly ambitious and more conducive to investment. 57

58 Section 3: Evaluation of policies to admit third-country nationals for business purposes, challenges and barriers Muñoz emphasised that the increased flexibility in granting visas has made it possible for a Spanish company to open subsidiaries abroad and train its non-eu employees in their headquarters, which previously involved a long bureaucratic procedure. In this respect, the managing director of the EMS company, which provides international mobility services to companies and professionals, explained that companies were going to other European centres and were setting up their training centres there. She also placed value on the permits granted through incoming capital, as they contribute to a country s economic development. Raising capital will eventually generate jobs, whether through the purchase of property, which must be maintained and which generates consumption and new service areas, or through the purchase of assets, which also strengthen the national economy, said Gazarían. Another of the new law s characteristics is that the work permit is granted immediately in order to recruit professionals with prospects or high qualifications without requiring a specific salary level. From the perspective of international employers, the secretary-general of the Spanish Expatriate Forum (FEEX), Miguel Ángel Vidal, considered that the input is absolutely positive. He noted that the legislation makes it possible to offer international scholarships, i.e. that third-country professionals with proven merits can obtain an automatic permit to study a postgraduate course at a business school and fund their studies by working at the company that is sponsoring them. We have started to use something which is essential, the war for talent, and Spain has been fiercely involved in it in recent years, he says. However, according to Gazarían, Spanish legislation could be improved and the residence permit could be granted directly to those intellectuals who present a strong CV, either due to having taught classes or written publications, without them having to submit a contract. Marco Martín, manager of the legal division at EMS, stated that the length of stay in Spain is no longer relevant when renewing permits, which makes expatriation of third-country employees more flexible, when the latter have to leave the country to move to other subsidiaries abroad. Q27a. Have any evaluations or studies considered the effectiveness of these policies to attract immigrant investors to stimulate the growth of the national economy and/or in comparison with other economies? Have specific indicators been developed for this purpose? Yes. 58

59 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Firstly, the information compiled in the Report on the Status of the Implementation of Section 2 of Title V of Law 14/2013, of 27 September, on support for entrepreneurs and their internationalisation, one year after its adoption, does not exclusively focus on the number of permits granted but also studies and specifically addresses other variables, such as the amount of investment and the number of jobs created. This makes it possible to understand the actual impact that this attraction policy has had on the Spanish economy. Secondly, the index produced by the OECD allows comparing the sectors in Spain in relation to other OECD countries (see question 26.b) and consider how this legislation has contributed to internationalise the Spanish economy. Q27b. If yes, please summarise the main conclusions here and include a reference to the evaluation or study in the relevant annex. As stated in question 26b, after the Law came into force, the estimated number of direct jobs created as a result of the specific system of admission of foreign investors was and the direct investment has reached e milion. These figures reflect the positive impact that the new Spanish migration policy has had on the economy. With respect to comparisons with other economies, the STRI allows us to state that there are no generic impediments to foreign investment, and Spain has portrayed itself as a country that is open to trade through the movement of natural persons. Q28a. Have any evaluations or studies considered the impact of these policies on other social issues (employment, access to housing, discrimination, etc.) and have specific indicators been developed? Yes. Q28b. If yes, please summarise the main findings here and include a reference to the evaluation or study in the annex to this study. As highlighted in previous questions, one of the parameters which is taken into account when evaluating the implementation of the policy to attract investors is the number of jobs created. See Q 26b and Q27B. Q29. Does any evidence exist (documents, speeches, media coverage, NGO campaigns, legal cases, etc.) that immigrant investors are perceived as abusing national migration rules? No. 59

60 Section 3: Evaluation of policies to admit third-country nationals for business purposes, challenges and barriers 3.2. BUSINESS OWNERS Q30a. Have any evaluations or studies analysed the effectiveness of national policies to attract immigrant business owners? Yes. Spain has developed a policy to attract categories related to investment and business, encouraging international mobility and entrepreneurship through the adoption of Law 14/2013. The different evaluations or studies of this Law have shown very positive results after its first year in force. Specifically, and in the same way as for immigrant investors, the Law can be evaluated by using various indicators: the number of permits and visas issued since the Law came into force; the number of jobs created and the total amount of investment, which reflect the impact that the attraction policy has had on the Spanish economy. All these indicators have been compiled in the Report on the Status of the Implementation of Section 2 of Title V of Law 14/2013, of 27 September, on support for entrepreneurs and their internationalisation, one year after its adoption. Likewise, and with an international perspective, the OECD Services Trade Restrictiveness Index (STRI) can be considered. Q30b. If yes, please summarise the main findings here and include a reference to the evaluation or study in the annex to this study. RESULTS OF THE LAW FOR ENTREPRENEURS The number of visas issued and permits granted can be used as an indicator to evaluate Law 14/2013. With respect to the immigrant entrepreneur category, as at 31 December 2014, a total of 82 entrepreneurs had been granted residence since the law entered into force. 7 Type of visas and permits Total number of people who were granted residence 8 Entrepreneurs 82 The number of reports issued by the Ministry of Economy and Competitiveness from 30/09/2013 to 31/12/2014 in the entrepreneur category was 91. Of these 91 projects regarded positively by the Ministry of Economy and Competitiveness, 33 originated in Business 7 Es posible que a una misma persona se le haya concedio un visado MAEC y un autorización MEYSS debido al funcionamiento del esquema de admisión previsto en la Ley 14/

61 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Schools. That means that 36% of the entrepreneurial projects had this origin, thereby fulfilling one of the targets set when establishing the specific policy for third-country entrepreneurs: supporting students from renowned business schools, which play an important role in innovative projects and as incubators. Reports Granted Business Schools Entrepreneurs As regards the activity sectors of these entrepreneurs, 95.6% of reports elaborated correspond to the service sector, mainly ICT sector, 2.2% to the agriculture sector and 1.1 to the industry and construction sector. Source: MINECO. Table 11. Report elaborated entrepreneurs Spread by economic sector Entrepreneurs Economic sector Reports % of total Agriculture Industry Construction Services TOTAL The amount of investment and the number of jobs created makes it possible to analyse the economic and social impact of the specific business-related migration attraction policy. The total figure for investment linked to foreign investors from 30/09/2013 to 31/12/2014 e 234 million. It is also estimated that a total of 2,624 jobs will be created in the coming years thanks to these entrepreneurial activities of special economic interest for Spain. PRESS ARTICLES Amount of investment (millones de euros) Entrepreneurs TOTAL In addition to the press articles shown in the section on third-country investors, the international press has also reported on the benefits that Law 14/2013 has meant for entrepreneur- 61

62 Section 3: Evaluation of policies to admit third-country nationals for business purposes, challenges and barriers ship and undertaking an entrepreneurial activity in Spain. This can be seen in the following press article published in the New York Times. At Spain s Door, a Welcome Mat for Entrepreneurs By NICK LEIBERNOV. 22, 2014 Last year, after more than a decade in Silicon Valley, Stacia Carr helped sell the company she was running and went looking for a change of pace. The Bay Area is supersaturated, she said. It s very expensive; it s hypercompetitive. After a friend connected her with Iñigo Amoribieta, a former chief executive of Group on Spain, Ms. Carr and Mr. Amoribieta started talking about creating an online video business together that would be based in Madrid, his hometown. Ms. Carr, 42, a Californian who has traveled extensively in Europe, long dreamed of living and working there. But as the founder of a start-up company and as an American citizen, she assumed that it would be next to impossible to get a work permit at a time when many European economies were struggling to rebound from the financial crisis. Then she learned of a law that Spain s government passed in September 2013 to help domestic businesses and to woo foreign talent and investment. It included a visa category for foreign entrepreneurs, requiring them to have little more than a government-vetted business plan, health insurance and enough money to support themselves while living in Spain. In a Madrid cafe, Ms. Carr worked on plans for her new business. I thought the entrepreneurship visa was exactly what I needed, she said. The law went into effect as soon as it passed, but when Ms. Carr contacted Spanish consulates in the United States, she couldn t find people who knew it existed, let alone how it worked. Convinced that word would eventually trickle down, she moved to Madrid from San Francisco in late November 2013 without applying for the entrepreneur visa, aware that Spain allows American citizens to stay for up to three months as tourists. Early this year, she and Mr. Amoribieta, 37, incorporated their venture, Vidnex, while working from a business incubator in the Salamanca neighborhood of the city. Vidnex offers an online tool that allows fitness instructors to teach classes remotely, streaming live video to their students. The classes are interactive, not prerecorded, with the student and the instructor able to see each other and talk in real time. Students can t see their classmates. Setting up the business in Spain, Ms. Carr said, was more challenging and required more formal documentation than she had expected. And getting residency presented challenges. 62

63 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES One of the first applicants to try to use the law s new entrepreneur visa, she found government workers unprepared to answer her questions. It was harder because she didn t speak Spanish, but Mr. Amoribieta helped her navigate the bureaucracy by preparing paperwork and scheduling appointments, including one meeting in which officials assumed that Ms. Carr was a personal trainer using the Vidnex service rather than a co-founder. Still, she managed to gain approval for her renewable, two-year entrepreneur residency permit in March, about a month after she applied under the new rules. Ms. Carr acknowledged that Spain, a country where unemployment reached a record high of about 27 percent last year, might seem an unlikely place to start a business. But when compared with European start-up magnets like London and Berlin, Spanish cities like Madrid and Barcelona have lower costs and fewer competitors and still have sufficient talent to get started, she said. Technical expertise can cost a quarter of what it would in Silicon Valley, Mr. Amoribieta said. Vidnex is housed in an incubator called Area 31, run by IE Business School. The incubator buoyed their efforts founders at other start-ups helped them find a contract designer and interns. Connecting with Madrid s entrepreneurs was like finding my tribe a million miles from home, Ms. Carr said. The new law, known as the Ley de Emprendedores, is Spain s latest effort to help domestic businesses and make the country more attractive to wealthy and talented people outside the European Union who want to start businesses, invest or work in the country. Billed by the government as reforms that would help create jobs at a time of high unemployment, the legislation created five visa categories, covering investors who buy at least 500,000 euros (about $625,000) of real estate; entrepreneurs who plan to establish businesses; highly skilled professionals; researchers, scientists and teachers; and employees and trainees. Once approved, recipients are allowed to move freely through most European Union countries. Visa decisions are promised within 10 working days, and residence permit decisions in 20. Processing is combined for married couples and their children. It really is a fast track, said Ana Garicano, a partner at the Sagardoy law firm in Madrid whose clients have used the law to get residency. The government is meeting its own deadlines. And there are no limits on the number of foreigners who can take advantage of each category. The policy goes further than laws in some other countries in that it offers speedy residency to different types of immigrants, not just the wealthy, said Josep Herrero and José Manuel Novo, lawyers at Roca Junyent in Barcelona, a firm that guides foreign entrepreneurs and investors through the process. The Spanish law is much more inviting and much simpler than England s law, Canada s law and France s law, Mr. Novo said. For example, entrepreneurs don t need to show a minimum investment in their business. 63

64 Section 3: Evaluation of policies to admit third-country nationals for business purposes, challenges and barriers According to Mr. Herrero and Mr. Novo, Spain borrowed the best ideas from other countries with immigration policies intended to lure talent and investment such as Canad, Britain and Chile. Vivek Wadhwa, an academic with positions at Stanford, Duke and Singularity University who advised the Chilean and Spanish efforts, bemoaned the United States for failing to pass similar legislation. We don t have a start-up visa, he said. We re forcing people to leave this country and go to other countries. Spain s changes send a message to the world that Spain is liberalizing its economy, and at the same time internationalizing its economy, said Miguel Ángel Vidal, secretary general of Foro Español de Expatriación, a lobbying group for Spain s biggest companies, including Banco Santander and Telefónica. He emphasized that businesses in Spain could now easily hire foreign nationals, bring in employees from overseas and train clients in Spain. It s a radical change, he said. Yet so far, even though the law has been in effect for more than a year, fewer than 100 foreign entrepreneurs have been granted residency through it. Some critics have questioned both its impact and whether its measures go far enough. There is also a possibility its appeal could be diminished by tax reform legislation that was approved last week by Parliament and is scheduled to go into effect on Jan. 1 after King Felipe VI signs it. The legislation creates a one-time exit tax on unrealized capital gains that will apply to certain entrepreneurs and investors with tax residency in Spain who leave and claim residency elsewhere. It s a real contradiction to the Ley de Emprendedores, said Mariano Gomariz, a tax partner at the Ecija law firm in Barcelona. It will discourage investment. But the exit tax will apply to entrepreneurs only if they stay for 10 years and then claim tax residency in a different country. This should not hamper entrepreneurs from coming to Spain, said Álvaro de la Vía, a professor of tax law at IE University, adding that the United States and some European countries had similar laws and that more were considering adopting them. In total, about 3,800 foreigners, including investors, professionals and their family members, have received residency via the new immigration rules, according to the Economy Ministry, and more than e280 million has been invested, primarily in real estate. An additional e265 million has been pledged for business projects. Jaime García-Legaz, the Spanish secretary of state for the economy, said that the immigration reforms were working as intended and that he expected the number of investors and entrepreneurs to increase gradually, as it has in other countries which put similar rules in effect. In the United States, awareness of Spain s bid for entrepreneurs has yet to spread. Juan Martínez-Barea, a Spanish biotechnology entrepreneur who also promotes Singularity University, a technology-focused institution in Silicon Valley, to tech circles in Spain, said that few within his network were familiar with his country s attempt to lure talent and capital. The law is on the right track but needs measures that would make it a little more revolutionary, he said, noting that the Chilean government s popular Start-Up Chile program grants $34,000, along with one-year residency, to founders who relocate to that nation. 64

65 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Chile s effort, started as a pilot program in 2010, has attracted nearly 2,000 entrepreneurs, whose businesses have raised more than $100 million in financing. The Chilean government has not yet conducted a study of the program s economic impact, but Sebastián Vidal, executive director of Start-Up Chile, explained that while its short-term mission was cultural, he expected the long-term effects to improve the economy significantly. Mr. Wadhwa described Chile s initiative as the world s most aggressive effort to lure entrepreneurs and said it was putting Chile on the map as a destination for start-ups. By comparison, Spain s law lacks the excitement of free money. The policy assumes foreigners want to come, Mr. Martínez-Barea said, but it s lacking an element that will make them want to come. A sweetener that the Spanish government should highlight, he said, is its unsecured lending program, which has about e100 million, or $125 million, to lend to innovative small and midsize companies annually. The loans, from e25,000 to e1.5 million, are available to all entrepreneurs, regardless of nationality, who have a business based in Spain (except for those running real estate or financial ventures). The public financing company making the loans, Enisa, doesn t track applicants nationality, said Carmen Cuesta, a spokeswoman, but plenty of foreign-born entrepreneurs have received them since Enisa was created in Last year, it made more than 600 unsecured loans to entrepreneurs, with an average amount of about e131,000. Mr. Martínez-Barea credits the birth of Universal Diagnostics, his own biotech start-up company in Seville, in part to the e200,000 it received from Enisa. He says he is convinced that if more foreign entrepreneurs knew about the government loans, they d find Spain more enticing: My friends at Singularity University say, Wow, I want this. And so did Ms. Carr and Mr. Amoribieta. They applied to Enisa in May and received approval in early October for up to e75,000. Vidnex, they said, was released to the public in September and is gaining traction among dozens of fitness instructors, mostly in Spain, who use the service to teach their classes online. Yet no matter where it is and how much help it gets, a start-up company still has to prove that its business model works, and Mr. Amoribieta acknowledged that the sales process had been slow. We are starting to realize, he said, that while the technology is here to work out remotely, it will take time for people to come around to this concept. But based on its expenses, he said, Vidnex has plenty of financial runway and a plan for future hiring, contingent on sales growth. Some of those new employees, he said, may come through the new law. Q31a. Have any evaluations or studies considered the effectiveness of these policies to attract immigrant business owners to stimulate the growth of the national economy and/or in comparison with other economies? Have specific indicators been developed for this purpose? Please also consider the contribution of business owners who are already present in the national territory. Yes. 65

66 Section 3: Evaluation of policies to admit third-country nationals for business purposes, challenges and barriers Q31b. If yes, please summarise the main findings here and include a reference to the evaluation or study in the annex to this study. Firstly, the evaluation of Law 14/2013 does not exclusively focus on the number of permits granted but also studies and specifically addresses other variables, such as the amount of investment and the number of jobs created. This way it is possible to understand the actual impact that this attraction policy has had on the Spanish economy. As stated in question 30b, after the Law came into force, the estimated number of jobs that will be created within five years is 2,624 and the direct investment related to business and entrepreneurial activities undertaken by third-country nationals under this Law is estimated at 234 million euros. These figures reflect the positive impact that the new Spanish migration policy has had on the economy. Secondly, the index produced by the OECD allows comparing the sectors in Spain in relation to other OECD countries. Q32a. Have any evaluations or studies considered the impact of these policies on other social issues (employment, access to housing, discrimination, etc.) and have specific indicators been developed? Yes. Q32b. If yes, please summarise the main findings here and include a reference to the evaluation or study in the annex to this study. As highlighted in previous questions, one of the parameters which is taken into account when evaluating the implementation of the policy to attract investors is the number of jobs created. Q33. Does any evidence exist (documents, speeches, media coverage, NGO campaigns, legal cases, etc.) that immigrant investors are perceived as abusing national migration rules? No OTHER BUSINESS PERSONS Q34a. Have any evaluations or studies analysed the effectiveness of national policies in attracting other immigrant business persons? Yes. There have been evaluations of the remaining categories as long as they fall within the scope of application of Law 14/

67 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Q34b. If yes, please summarise the main findings here and include a reference to the evaluation or study in the annex to this study. RESULTS OF THE LAW FOR ENTREPRENEURS The number of visas issued and permits granted can be used as an indicator to evaluate Law 14/2013. With respect to the immigrant intra-corporate transferee category, by 31 December 2014 a total of 907 permits had been issued on the grounds of intra-corporate transfers, which represents a 16.3% of the total of permits granted. Type of visas and permits Total ICT 907 TOTAL 5,580 With regard to the nationalities of the intra-corporate transferees, USA represents 22.8% of the total (207 permits), followed by China with 12.6% (114 permits), India with 11.7% (106 permits) and Brazil with 8.5% (77 permits). Table 14. Intra-corporate transfers Main countries Nationality No. permits % s/total % of total USA China India Brazil Saudi Arabia South Korea Japan Canada Mexico Turkey main countries TOTAL Source: MEYSS. 67

68 Section 3: Evaluation of policies to admit third-country nationals for business purposes, challenges and barriers With regard to the economic activity carried out by these professionals, 61.5 % of the permits issued were for the services sector, 21.5% for the industry sector, 3.3% for the construction sector, 0.1% for the agriculture sector. Source: MEYSS. Sector of economic activity Intra-corporate transfers Economic sector No. permits % of total Agriculture Industry Construction Services Unclassified TOTAL Q35a. Have any evaluations or studies considered the effectiveness of these policies to stimulate the growth of the national economy and/or in comparison with other economies? Have specific indicators been developed for this purpose? See question 26. Q35b. If yes, please summarise the main findings here and include a reference to the evaluation or study in the annex to this study. See question 26. Q36. Does any evidence exist on the impact of the schemes in these categories on the volume of trade, mobility, etc.? This new legislative framework has had a very positive impact on Spain s results in the Services Trade Restrictiveness Index (STRI). The study acknowledges that obstacles to movement of persons are one of the key barriers which prevent countries from taking advantage of all the potential available to them. Following the adoption of the International Mobility section of Law 14/2013, the barriers to movement of persons in Spain have changed from being very significant to being minimal, and the study itself highlights Spain as an example of a liberal country. Q37. Does any evidence exist (documents, speeches, media coverage, NGO campaigns, legal cases, etc.) that immigrant business persons are perceived as abusing national migration rules? No. 68

69 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES 3.4. CHALLENGES AND OBSTACLES TO ADMITTING THIRD COUNTRY NATIONALS FOR BUSINESS PURPOSES This Section examines the existing challenges and obstacles in the design and implementation of specific policies aiming to attract immigrant investors, business owners and other business persons and the challenges and barriers reported by the business community. You are also asked to identify any obstacles to their admission (entry requirements, investment plan, business plan, obtaining visa, etc.) or to other macro-level areas such as visa policy, education, trade, etc.). The national contact points are asked to present any studies or evaluations or statistics in Annex 1. Q38. What are the main challenges related to the admission of immigrant investors, immigrant business owners and other business persons? In general: harmonization with other policies, specially fiscal and Social Security Categories Immigrant investors Business owners Business visitors for establishment purposes (BVEP) Challenges for national stakeholders associated with the design and implementation of the policies. Please indicate if there are any studies or reports on this. To continue with the dissemination of the Law, to improve computer interconnectivity among administrative bodies. Allowing for a second opportunity to entrepreneurs and harmonize the risk inherent to any business activity with the need to maintain conditions. The difficulty in setting a time limit for the creation of a successful project. Challenges for applicant at both admission and stay stages (For example, documentation required, waiting times, restrictions, etc.) Intra-corporate transferees (ICT) To improve coordination with labour and social security rules. Business sellers (BS) To achieve a higher harmonization with the general and fiscal legal framework. Independent professionals (IP) To achieve a higher harmonization with the general and fiscal legal framework. 69

70 Section 3: Evaluation of policies to admit third-country nationals for business purposes, challenges and barriers Categories IContractual services suppliers (CSS) Graduate trainees (GT) Other (please describe) Challenges for national stakeholders associated with the design and implementation of the policies. Please indicate if there are any studies or reports on this. To achieve a higher harmonization with the general and fiscal legal framework. To achieve a higher harmonization with the general and fiscal legal framework. Challenges for applicant at both admission and stay stages (For example, documentation required, waiting times, restrictions, etc.) 70

71 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES SECTION 4: GOOD PRACTICES AND LESSONS LEARNED Setting up a specific and flexible system to attract talent and investment is crucial in forming successful investment and entrepreneurial processes that make an effective contribution to improving the competitiveness of the economy and job creation. The study of Spain s experience in attracting business-related migration brings the following good practices and lessons learned to light. The main lesson is the importance of integrating the economic policy and the support to internationalisation when designing qualified migration policy. The creation of an interministerial working group for the design and implementation of the rules constitutes an example of good administrative practice. The establishment of a genuine network of strategic alliances between the authorities and the business community has made it possible to design a specific admission policy that meets the requests communicated by the members of this community. Furthermore, this network has continued its work by taking part in the initiatives to promote the policy. The possibility to simply change one s status from one permit type to another when the foreign national is residing legally in Spain. The status changes for business-school students/ entrepreneurs are particularly significant. The flexibility required to regulate these specific admission procedures, which has made it possible to adapt to Spain s economic and social reality and, as a result, has helped to enhance the economy s competitiveness. The reduction in processing times, which result in time and cost savings when implementing projects. The centralisation of permit procedures in a specific unit that is specialised in this field, namely the Large Companies Unit, with the aim of ensuring that the requirements and processing times are applied in a balanced and coordinated manner throughout Spain. The case-by-case analysis of applications by the Ministry of Economy and Competitiveness, from a commercial angle, allows the specific, individual features of each investment or business project to be taken into account both in terms of requirements and processing times (start-up and execution of the entrepreneurial activity). This analysis criterion is also maintained when renewing permits. With respect to entrepreneurs, absence in the legislation of a minimum amount of investment has emerged as a good practice. Each project is analysed on a case-by-case basis. The issuing of a favourable report prevents, as far as possible, any abuse of these specific issuing procedures and guarantees the initial solvency of the projects submitted for approval. 71

72 Section 4: Good practices and lessons learned The importance of offering assistance in preparing investment and business plans. The competent Spanish authorities are in constant contact with the applicants, with the aim of providing online assistance. Furthermore, plans submitted in English are accepted as an administrative practice. The economic nature of the competent authorities that assess the investment/business plans guarantees that the projects are analysed by experts in the field. The provision under Spanish legislation of a specific admission system not only for businessrelated categories but also for their family members enables them to process their residence permits at the same time as the investor/entrepreneur/intra-corporate transferee, whereby they are guaranteed access to the labour market. This is a request which the business community has made with growing intensity, thereby highlighting the importance of offering adequate treatment of the family and especially the spouse, covering the concept of double careers. 72

73 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES SECTION 5: CONCLUSIONS Section 2 of Title V of Law 14/2013 has entailed a genuine transformation of the international mobility model that existed in our country. The new regulation has managed to reconcile the control of migration flows with the economic and trade needs that Spain faces in a globalised environment, and as a result remove obstacles to investment and foreign entrepreneurship. The main conclusions which have emerged in the study are as follows: Firstly, in order to attract investment and foreign entrepreneurship in the most optimal way possible, it is essential for both national and EU legislation to be flexible in order to adapt to a changing and international reality. In addition, it is crucial to make migration policy more consistent with other policies, especially in the context of business-related migration and trade policy. Indeed, this study highlights the strong, growing link between migration and trade policy. In this respect, the applicability of flexible migration systems to categories of businessrelated third-country nationals allows countries to improve their negotiating position in trade matters. Secondly, the study brings to light the need to work on improving the efficiency and effectiveness of migration models so that migratory movements for reasons of trade or economic opportunities are genuinely made easier. In the case of Spain, progress must be made to increase the coherence of the policy to facilitate international mobility. After a year in force, the Law has proven to be successful, but some aspects require improvement, in addition to increasing its coherency, in order for it to be established as a genuine tool to attract third-country entrepreneurs and investors. Economic operators, companies or start-ups meet their location needs in one country or another depending on various aspects (growth prospects, legal security, etc.). The new legislation has created a new framework which makes it necessary to rethink traditional rules in other ambits (labour, taxes and social security). The partial recovery following the 2007 global crisis is generating differential opportunities for growth, employment and, in an internationalised context, migration. Throughout the coming years, capital and talent are going to move from one country to another and migration policies must accompany these international mobility processes in order to encourage, rather than hinder, these movements. In this respect, only coherent, efficient and effective migration policies will be able to bring down the barriers to international mobility, thereby attracting foreign investment and entrepreneurship and, as a result, generating economic growth and employment for both the receiving countries and the countries of origin. Thirdly, this study has revealed that putting into place policies which facilitate entry and resi- 73

74 Section 5: Conclusions dence to certain categories of business-related migrants has positive effects which can be increased by frameworks for cooperation and reciprocal partnerships with other countries. In relation to this point, it is crucial that the European Union become aware of the importance of these types of policies. Cooperation and negotiation based on the principle of reciprocity, which Spain is already working on. In this respect, Spain has signed Memoranda of Understanding with certain countries (like Mexico) In the Latin American area, the Declaration of Veracruz signed at the XXIV Ibero-American Summit (held in Veracruz, Mexico) includes a commitment in point 5 to boost the mobility of entrepreneurs and investors (among other groups) within Latin America. Fourthly, it is essential that promotion of the Law continue. The data show that in those categories (in the case of investors) where specific promotion and dissemination work has been carried out, the numbers of permits and positive effects linked to them have multiplied. It will be necessary to improve some aspects of dissemination and intensify these actions with regard to entrepreneurs. Finally, the legislative implementation of Law 14/2013 will make it possible to reinforce facilitation and improve the application of these specific systems to attract foreign investment and entrepreneurship. 74

75 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES ANNEX 1. STATISTICS FROM MEMBER STATES WILL BE USED IN THE SYNTHESIS REPORT TO CONTEXTUALISE THE STATISTICS PROVIDED IN THIS ANNEX 8 9 Table 1. Statistics on immigrant investors and immigrant business owners Statistics on immigrant investors 9 Indicators Number of visa applications (national D-type visas) Number of visa issued (national D-type visas) Number of visa refused (national D-type visas) Number of applications for residence permits (perhaps an estimate e.g. admissions) Sept-2013 to Dic Source / further information Number of residence permits issued (perhaps an estimate e.g. admissions) 530 visas and permits Number of residence permits refused / withdrawn (perhaps an estimate e.g. admissions) Average age of migrant investors who were granted residence permits (and national D-type visas?) Statistics on immigrant business owners 10 Number of visa applications (national D-type visas) Number of visa issued (national D-type visas) Number of visa refused (national D-type visas) Number of applications for residence permit 8 For Ireland and the United Kingdom, statistics refer to the relevant visas on immigrant investors, but please indicate the name of the visa category to which the data refer to. 9 For Ireland and the United Kingdom, statistics refer to the relevant visas on business owners, but please indicate the name of the visa category to which the data refer to. 75

76 Annex 1: Statistics from Member States will be used in the Synthesis Report to contextualise the statistics provided in this annex. Table 1. (Continuation) Indicators Number of residence permits issued (perhaps an estimate e.g. admissions) Number of residence permits refused / withdrawn (perhaps an estimate e.g. admissions) Number of residence permits reflecting a change of status into business owner (specifying, if possible, from which category i.e. student, family member, beneficiary of international protection, etc.) Average age of immigrant business owners Sept-2013 to Dic for entre-preneurs Source / further information Statistics on other business persons corresponding to Annex 2 (EU Mode 4 categories) and other business persons as recognised by Member States Number of third-country nationals admitted under EU Mode 4categories or equivalent categories indicated in Q22. If available data can be broken down according to the categories in Annex 2, please provide them in a separate spreadsheet. 907 for ICTs Number of visa applications (national D-type visas) Number of visa issued (national D-type visas) Number of visa refused (national D-type visas) Number of visa applications (Schengen C-type visas) Number of visa issued (Schengen C-type visas) Number of visa refused (Schengen C-type visas) Table 2. Indications of the average length of time needed for each of the following indicators The table below is not intended as having detailed, hard statistics on the average length of time taken, but rather as approximate indications. In case you concrete statistics or data are available however, please provide them separately. Please indicate with X the (approximate) average length of time needed for each of the indicators. 76

77 ADMITTING THIRD-COUNTRY NATIONALS FOR BUSINESS PURPOSES Table 2. (Continuation) Average length of time expected (in days) A few days From a few days to a week Up to two weeks Up to a month More than a month Average time expected between lodging an application and the final decision for a visa application of an immigrant investor 10 days Average time expected between lodging an application and the final decision fora visa application of an immigrant business owner 10 days Average time expected for registering a business (from application to establishment) If possible to change status: the average time expected for third-country nationals already present in the Member State to change their status into immigrant investor (from family reasons, study reasons, asylum, etc.) 20 days If possible to change status: the average time expected for third-country nationals already present in the Member State to change their status into immigrant business owner (from family reasons, study reasons, asylum, etc.) 20 days Please indicate if statistics are available on businesses established by immigrant business owners and by Business Visitors for Establishment Purposes (BVEP): (such as total number of businesses established by third-country nationals; number of FTEs created by migrant investors and business owners; number of survived / closed businesses; share of businesses per size (share of 1; 2-10, 11-19, 20-49, 50+ employees).if possible, EMN NCPs are asked to indicate whether data refer to newly admitted business owners or they include also those third-country nationals already living in their Member States Not available Please indicate if statistics are available on the economic effects of immigrant investments or businesses (such as the share of migrant investments out of total annual national investments; number of FTEs created/supported as a result of investments by third-country nationals; the tax contribution to the national revenue systems of immigrant business owners and investors; the increased economic ties / trade volumes with specific third countries as a result of immigrant business owners and investors). No available 77

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