Many of our clients ask us, ´what is going to happen with the golden visa in Spain and when will it end´?
In this post we can confirm that the government of Spain has taken the first step to eliminate the Golden Visa for property purchases by amending the Entrepreneurs Law to remove this method to obtain the investor residency.
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In this post we cover the following: (click any section to see its content)
What is going to happen with the golden visa in Spain.
- GOVERNMENT TAKES FIRST STEP TO ELIMINATE GOLDEN VISA »
- SPANISH GOLDEN VISA FOR INVESTOR PERMIT »
- GOLDEN VISA IN SPAIN »
- ALL TYPES OF RESIDENCY AVAILABLE IN SPAIN »
- SCHEDULE AN APPOINTMENT WITH A SOLICITOR »
SPANISH GOVERNMENT TAKES FIRST STEP TO ELIMINATE GOLDEN VISA:
The government of Spain announced in April of 2024 their intent to eliminate the Golden-Visa, a repeal that will directly affect many foreigners who had considered the idea of investing in products or real estate here in Spain and which will also affect many people who make a living in the real estate sector who offer services to clients who want to facilitate the authorization of residence who buy a home for more than 500 thousand euros of one or several homes or several properties in Spain.
To start the procedure of elimination, a legal action was started which included the withdrawal of the Land Law, but this has already caused the process stop, even before it managed to start.
The government planned to exclude the golden visa through a partial amendment in the law, but the process was halted due to a lack of support in the lower house. The decision to withdraw the Land Law reform project was made to avoid a major defeat in Congress before the European elections.
The withdrawal of the law affects the elimination of the Golden Visa for real estate investment. The government had planned to include this measure through a partial amendment in the law. However, the legislative text is now in the hands of parliamentary groups to serve as a basis for negotiating a “necessary” reform demanded by mayors from different parties after the “electoral frenzy”. Although the government has not provided details on the future of this measure, it might be included in the processing of another law. Law 14/2013, approved by the Popular Party, allows non-EU foreigners to obtain a visa or residence permit by purchasing property in Spain worth over 500,000 euros.
According to the Housing Minister, this decision is part of a plan to solve the housing problem, as most of these visations are linked to real estate investment in cities with a highly strained housing market. From 2013 to 2023, Spain granted 14,576 Golden Visas linked to real estate investments. The main nationalities benefiting from this law are China, Russia, the United Kingdom, the United States, Ukraine, Iran, Venezuela, and Mexico.
In 2023, the purchase of homes by foreigners increased significantly. In cities like Marbella or Barcelona, property purchases linked to investments under Law 14/2013 accounted for up to 7.1% (Marbella) and 5.3% (Barcelona) of total home sales in one year. The Housing Minister emphasized that this measure aims to offer an equitable response to people seeking housing, eliminating the distinction between first and second-class citizens.
The continuity of this measure is now in doubt due to the withdrawal of the Land Law amendment. The executive’s project faced a crucial vote last Thursday, addressing the overall debate against amendments from colaboration parties; Junts, ERC, and Podemos. However, it lacked support from part of the government. Despite being a bill approved by the Council of Ministers, another collaboration party Sumar, announced it would let the law fall, believing it promotes a “culture of easy profits”. As a result, the law ended up in the hands of the Popular Party, which refused to intervene in favor of the PSOE, especially before the electoral campaign for the June 9 EU elections.
The government is encountering issues on passing this change in law to stop the Golden-Visa, but this does not mean that it wont go through, meaning we will have to wait to see how things proceed.
GOLDEN VISA FOR INVESTOR PERMIT:
At current Non-EU citizens can obtain this residence permit in Spain if they make one of these investments in Spain:
Investment in Financial Assets:
- Public Debt (€2 million)
- Shares or social participations of Spanish capital companies (€1 million)
- Investment funds, closed-end investment funds, or venture capital funds established in Spain (€1 million)
- Bank deposits in Spanish financial institutions (€1 million)
- Real estate investment (€500,000)
Investment in a business project in Spain: there is no minimum amount for this type of investment, its impact on the general interest is evaluated:
- Job creation
- Socioeconomic impact in the geographical area where it will be developed
- Significant contribution to scientific and/or technological innovation
Many people have accessed the permits offered through this law, and therefore many people today hold investor residency authorizations in Spain.
The Golden-Visa for acquiring real estate was introduced in 2013, following the economic crisis and at a very specific moment in Spain, where foreign capital investment and real estate acquisition were necessary. After 10 years of being able to carry out these procedures, many people are now calling for this permit to cease in our country.
GOLDEN VISA IN SPAIN:
If you want to know more about this residence permit, here we explain the additional requirements that must be met to obtain this authorization as an investor.
A foreigner, non-EU citizen, who buys one or more properties in Spain, which total at least €500,000 of investment in property, has the option to apply for an investor authorization.
Many clients ask us what to do if the purchase of the investment has not yet been finished, but there is a deposit contract. In these cases, where the commitment to purchase the property has been made through this contract, it is not yet possible to apply for the investor authorization we are discussing.
The investor authorization can only be made when the applicant can demonstrate that they own the property.
If the applicant only has a deposit contract, the only thing they can do is to apply for an investor visa, which will last for 6 months.
In this case, the consulate requests that the purchase commitment to be demonstrated (something that can be done at a notary).
Additionally, it must be proven that the applicant can demonstrate the liquidity or amount to make the property purchase.
This can be done through a bank certificate that certifies the required sum of money for the purchase and enough money to pay the necessary taxes to acquire the property.
ALL TYPES OF RESIDENCY AVAILABLE IN SPAIN:
- Golden-Visa Spain (residence in Spain by investment)
- Non-Lucrative visa Spain (Spanish visa non lucrative)
- Self-Employed visa Spain (self employed expats in Spain)
- Digital-Nomad visa Spain (remote worker in Spain)
Please see-here our video-blog with options and legal-advice to obtain residency in Spain.
Remember that immigration procedures and immigration regulations change regularly, so it’s crucial to stay updated with the latest information from reliable sources. If you have specific questions or concerns about your situation, it’s advisable to consult with immigration authorities or legal professionals specializing in immigration matters, to do this, please click-here »
DO YOU REQUIRE ASSISTANCE TO APPLY FOR RESIDENCE OR CITIZENSHIP IN SPAIN?
We are a Spanish Solicitor and assist our clients with all types Spanish legal processes.
Permanent residency is obtained after 5 years of Spanish Residency through Self-Employed Residency, Digital-Nomad, Non-Lucrative Residency or Golden-Visa. This followed by 5 years as a permanent resident in Spain and means you can then obtain Spanish Citizenship with a Spanish Passport.
