Spain: your partner in Europe

International mobility – New legal framework

January 2014

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* The information included in this presentation has been adapted for commercial purposes and therefore it iswithout prejudice of the applicable legal framework.

Residence & Working VISAS for investors, entrepreneursand

Executives & Qualified Professionals.

The new Law on Support of the Entrepreneurship and itsInternationalization (September, 27th 2013) introduces a new specificframework for qualified immigration and investors and therefore itcontributes to the international mobility of professionals and investors to Spainand to the attraction of foreign investment in order to improve thecompetitiveness and innovation capacity of companies located in Spain.

NEW LEGAL FRAMEWORK

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This new immigration framework is based on an agile and specialized systemfor visa and authorization concessions for: investors, entrepreneurs,executive and professional staff and scientist and researchers.

� The procedures are very agile : 10 days for visas and 20 days forauthorizations

� There is a single authorization for living and working in Spain

� These authorizations are valid for the whole of Spain

NEW LEGAL FRAMEWORK: GENERAL ADVANTAGES

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� The National Employment Situation will not be considered for the employees

� The family (spouse and children under 18) will be able to apply for theirvisas at the same time as the main applicant

I. Investors

II. Entrepreneurs

III. Highly qualified professionals

NEW LEGAL FRAMEWORK: CATEGORIES

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III. Highly qualified professionals

IV. Intra-corporate transferred employees

V. Scientists and researchers

GENERAL REQUIREMENTS

•Not being in an illegal situation in Spain

• Being 18 years old or older

• Not having criminal records

• Having a public or private health insurance from an entity authorized to operate in Spain

• Having enough economic resources for you and the members of your family applying for

NEW LEGAL FRAMEWORK: GENERAL REQUIREMENTS FOR ALL C ATEGORIES

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• Having enough economic resources for you and the members of your family applying forresidence in Spain to cover living personal expenses (*)

(*) Monthly amounts: Applicant €2,130.04 (2013) Relatives €532.51 (2013) for each relative.In case of executives and highly qualified professionals, this requirement will be proved bytheir working contract with a company, entity or R&D program

FAMILY REGIMEThe applicant’s spouse and children under 18 year old can also apply for their visa at thesame time or after the main applicant.

I. INVESTORS VISA AND RESIDENCE AUTHORIZATION

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Who?Foreigners who make a significant economic investment in Spain. This investment mustfulfill any of the following requirements :

• Real Estate goods in Spain that are worth 500,000 € or more (net of charges andtaxes)

• Public debt securities : minimum 2 million €

• Spanish companies’ shares or Spanish bank deposits: minimum 1 million €

• Business projects in Spain considered to be of public interest reasons. Suchprojects must either:

I.-1. INVESTORS VISA AND RESIDENCE AUTHORIZATION: S PECIFIC REQUIREMENTS

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� Create jobs in Spain� Have an important socio-economic impact in the geographical area

in which the employment activity is to be carried out� Have a significant contribution to scientific and/or technological innovation

How?Directly by the foreigner or by a company. In this case:

- The applicant must have the majority of the company’s voting rights.- The applicant must be able of appointing or dismissing the majority of the

members of its Management Board- The company must not be registered in a tax haven

I.-2. INVESTORS VISA AND RESIDENCE AUTHORIZATION: P ROCESS

1st step : Applying for an investor visa.

This visa will allow the foreigner to enter and stay in Spain for a maximum period ofone year.

Where?The Spanish Consulate of the applicant’s place of residence (in person or by a dulyaccredited representative).

How long?The process will be resolved in maximum 10 days (except for countries where an

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The process will be resolved in maximum 10 days (except for countries where anadditional query is required).

Documents:�Application form.�Documents showing that general requirements are fulfilled (valid passport,

medical certificate, health insurance, policy records, proof of economicmeans…).

�Application fees.�NIE number (Foreigners Identification Number): if the applicant does not have a

NIE number yet, he will have to apply for it when applying for the visa.�Evidence of having made the investment . This document depends on the

specific type of investment.

Evidence documents of having made the investment:

• Real estate goods:Certificate with information of possession and charges of the Property Registry. If at the moment ofthe visa application, the property is still been registered, Certificate of the Property Registry statingthat the acquisition document has been submitted and certificate of tax payment.

• Spanish public debt securities:Certificate of the financial entity or the Banco de España stating that the applicant is the only titleholder of the investment during at least 5 years.

• Spanish companies’ shares :

I.-2.INVESTORS VISA AND RESIDENCE AUTHORIZATION: PR OCESS

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• Spanish companies’ shares :Unquoted shares: investment declaration of the Foreign Investments Registry (Ministry of Economyand Competitiveness).Quoted shares: certificate of the financial intermediary, stating that the applicant has made theinvestment according to this rule.

• Bank deposits in Spain:Certificate of the financial entity stating that the applicant is the only title holder of the bank deposit.

• Business projects in Spain considered to be of public intere st reasons:Favorable report issued by the Spanish Economic and Trade Office of the Embassy of Spain incharge of the territory where the person submits the application.

I.-2. INVESTORS VISA AND RESIDENCE AUTHORIZATION: P ROCESS

2nd step : Applying for an investor authorization.

This authorization will be valid for two years and it can be renewed for further terms oftwo years, if the investment is maintained.

Where?The application is made in the Spanish Unit for Large Companies (Madrid), directly orby a duly accredited applicant.

How long?The process will be resolved in maximum 20 days .

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The process will be resolved in maximum 20 days .

Stay requirements?The authorization holder will not need to stay a minimum period in Spain to renew it.Travelling once to Spain during the residence period will be enough.

Nevertheless, the investor can choose to have continued legal and fiscal residence inSpain. In this case, after five years, the foreigner will be able to apply for a long-termresidence permit .The minimum stay will be then 183 days per year and a maximum time out of Spain often months within those five years.

II. ENTREPRENEURS AND BUSINESS ACTIVITIES VISA AND AUTHORIZATIONAUTHORIZATION

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Who?Foreigners who would like to develop an entrepreneur and innovative activity with specialeconomic interest for Spain

How?1st step : up to one-year visa to entry and stay in Spain in order to develop the process ofsetting up their business activity.

It will be necessary to have the favorable report of the General Directorate of Trade andInvestments of the Spanish Economy and Competitiveness Ministry. This report must beapplied for at the Spanish Economic and Trade Office.

II. ENTREPRENEURS AND BUSINESS ACTIVITY VISA AND RE SIDENCE AUTHORIZATION

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Once all the documents have been submitted at the Spanish Consulate, the process will beresolved in maximum 10 days (except for countries where an additional query is required).

2nd step : once the company is created, the visa holder will be able to apply for theentrepreneurs and business activity authorization at the Spanish Unit for LargeCompanies (Madrid).

The entrepreneur will not need to exit Spain to apply for such an application.

This authorization will be valid for two years and it can be renewed for further terms of twoyears, if the business activity is maintained. For this purpose, they will need a favorablereport of the Spanish General Directorate of Trade and Investments.

Once all the documents have been submitted, this process will be resolved in maximum 20days.

III. EXECUTIVES AND HIGHLY QUALIFIED PROFESSIONALS

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Who?

The companies wanting to hire foreign employees can apply for this authorization(valid for the whole of Spain ) in any of the following cases:

a) Executives and highly qualified professionals of a company or group ofcompanies that fulfill any of the following requirements:

� An average staff of more than 250 employees in Spain.� An annual net turnover in Spain exceeding €50 million.� An equity or net assets value in Spain exceeding €43 million.

III. EXECUTIVES AND HIGHLY QUALIFIED PROFESSIONALS AUTHORIZATIONS

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� An equity or net assets value in Spain exceeding €43 million.� An annual average gross investment volume from abroad of a minimum of €1

million in the three years immediately before submission of the application.� Companies with an investment stock value over 3 M €.� SMEs belonging to a Strategic Sector, which are, tentatively: information and

communications technologies, renewable energies, the environment, waterand water treatment, health sciences, bio-pharmaceuticals and bio-technologyand aeronautics and aerospace.

b) Executives and highly qualified professionals of a business project in Spain thatrepresents either:

� A significant increase or maintenance of employment within the company, theactivity sector or region where the activity is to be carried out.

� A project fostering the economic activity in the region.� Interest reasons for the trade and investment policies in Spain.� A significant contribution to scientific and/or technological innovation.

In order to show that it fulfills this requirement, the business project must get a

III. EXECUTIVES AND HIGHLY QUALIFIED PROFESSIONALS AUTHORIZATIONS

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In order to show that it fulfills this requirement, the business project must get afavorable report from the Spanish authorities

c) Graduates and postgraduates from renowned Universities or Business Schools.

Where?The application is to be made by the company in the Spanish Unit for Large Companies(Madrid), directly or by a duly accredited applicant.

How long?The process will be resolved in maximum 20 days.

IV. Intra-corporate transfer

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Who?

Companies or group of companies that would like to transfer to Spain one or more foreignersin the framework of a labor relationship or to develop professional training.

The company may be set up in Spain or in another country .

This will be valid for the whole of Spain .

Requirements:

IV. INTRA- CORPORATE TRANSFERS

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• There must be a real business activity and company or group of companies.• The foreigner must have a Graduate Degree or minimum 3 years of work experience.• There must exist a previous and continuous labor or professional relationship of at least 3

months with one or several companies of the group.• Providing documents of the company in which the transfer is accredited.

Where?The application is to be made by the company in the Spanish Unit for Large Companies(Madrid), directly or by a duly accredited applicant.

How long?The process will be resolved in maximum 20 days.

V. Scientists and researchers

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Who?

Private and public companies and other entities wanting to hire foreign employeesdeveloping training, research, development and innovation activities. They must be,either:

� Research staff

� Scientific and technical staff: developing scientific research, development ortechnological innovation activities

V. SCIENTISTS AND RESEARCHERS AUTHORIZATIONS

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� Researchers working in a research organism, in the framework of anagreement

� Universities or business schools teachers

Where?The application is made in the Spanish Unit for Large Companies (Madrid), directly orby a duly accredited applicant.

How long?The process will be resolved in maximum 20 days.

ICEX-Invest in Spain

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How can ICEX-Invest in Spain support a foreign company or ind ividual withregard to immigration issues?

• Advice about the most appropriate way (quickest and easiest) to obtain theirresidence or residence and work permits.

• Advice about how to open a subsidiary, branch, acquire a company, etc.

• Services for foreign companies already operating in Spain in order to answer

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• Services for foreign companies already operating in Spain in order to answerlegal doubts in connection with work and residence permits

• Act as the institutional contact for companies towards all Spanish entitiesengaged in the process, such as the Spanish Embassy and Consulates abroad,Spanish Ministry of Employment and Social Security, Foreign Affairs Ministry,Regional Immigration Office, etc.