Where? (Location)
Thursday, June 4th, 2015

Rimontgó presents to the Government of Spain suggestions for improving the Law to Support Entrepreneurs

RimontgóEarlier this year, with the help of the Chamber of Commerce of Valencia, Rimontgó sent to the Secretary of State for Trade, a body under the Ministry of Economy and Competitiveness, a number of suggestions for some aspects of the Law on Support of the Entrepreneurship and its Internationalization (Law 14/2013) to be modified.

Since the Law was launched in September 2013, the experience gained by staff has allowed Rimontgó to substantiate the suggestions submitted to the Government of Spain. No wonder, Rimontgó was the first Spanish company that has achieved for its clients a residence permit based on a series of investments from China, declared by the Ministry “of general interest in Spain”.

These suggested changes intended to increase the competitiveness of Spain as a destination for foreign investment, compared to other countries such as Portugal, Greece, UK, Canada, USA and New Zealand.

Therefore, it recommends the following reforms to the Law 14/2013:

1.     In the case of investment outlined in letter a) of paragraph 2 of Article 63 of the Law, the current sixty days deadline to present the application should be removed.

In the cases specified in letters b) and c) of paragraph 2 of Article 63 of the Law, this deadline does not exist. In addition, it makes little sense to ask someone to do an investment only to have their residency permit denied for not having provided all the relevant paperwork before the 60 days period.

2. After the first year of permitted residence: Permit renewals should be valid for five years rather than two years, as is currently the case.

3. Article 66. Authorization of residence for investors

To encourage the most significant investments and compete with neighbouring countries, AUTHORIZATION of PERMANENT RESIDENCE should be given to investors,  in the cases of investment provided for in paragraph 2 of Article 63:

  • In the case specified in letter a) of investment in unlisted shares

✓ if the investment is higher than 2 million euro

✓ and maintained for five years.

  • In the case specified in letter b), of investment in real estate

✓ if the initial investment is equal to or greater than 1 million euro

✓ and maintained or replaced for another of the equal value to or greater than 1 million euro for five years.

  • In the case specified in letter c), of investment in a business project that is deemed of general interest

✓ if the investment is higher than 3 million euro and maintained for five years.

 In all cases, investments have contributed to the Spanish economy.

José Ribes and investors from ChinaAdditionally, we suggest to consider the direct licence of AUTHORIZATION OF PERMANENT RESIDENCE to those investors, in cases of investment provided for in paragraph 2 of Article 63,  whose initial investment is equal to or greater than 10 million euro and is maintained for at least one year.

In the specific case of China, many of its citizens have a high purchasing power and they look at the world market for the best options that the different countries can offer. We must comment that the main motivation is to have authorization of residence (Permanent Residency Card) to allow them to leave China whenever they want.

They have no intention of being a foreign resident, except when it comes to educating their children in international schools mainly that speak English and follow the British curriculum. In Spain we have schools that meet these requirements.

They have no intention of applying for a Spanish passport, since they do not want to lose their Chinese passport; they only want to have the authorization to visit Europe without the need for a visa.

Comparisons with other countries that compete with Spain: In Portugal, United Kingdom, New Zealand, Canada and the US, among other countries where today Chinese investment mainly comes, Permanent residency is achieved  after a short time, which in most cases is only five years.

Since the implementation of the Law 14/2013, Rimontgó has closed many transactions, especially with Chinese investors, both in real estate (obtainment of visas for home purchase values superior than 500,000 euro) as in the concession of visas for the implementation in our country of a general interest qualified business project. Rimontgó designed exclusively and confidentially two investments projects in the Spanish wine making sector that led to the first two such visas being granted in China.

Despite this positive experience, Rimontgó considers that certain aspects of the Law should be reviewed in order to increase competition in our country towards foreign investors.

Articles included in: