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 rem@meyss.es 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