End of the Golden Visa in Spain: End of the Golden Era of residences for investors
At the beginning of 2024, the Government announced its intention to end the Golden Visa in Spain.
This is a measure that seeks to relax the real-estate market of luxury homes, which in turn could also supposedly have a positive impact on the prices of properties intended for the middle and lower classes.
However, not all professionals and experts in this market believe that the aforementioned decision will have a great impact.
What is the Golden Visa in Spain?
First of all, it is important to define: What is the Golden Visa in Spain?
By Golden Visa we understand the granting of a residence visa in Spain, the main requirement of which is focused on the significant investment of capital in: financial assets, acquisition of real estate or a business project.
Specifically speaking about the real estate investor visa (the one that has had the greatest impact on the volume of applications), the main requirement is the acquisition of real estate for a total (tax-free) of 500,000 euros.
The main attraction of the Golden Visa has been to facilitate access to Spain and Europe because it does not require a minimum stay to renew or maintain it, it only requires that you visit our country once a year, nor is there an obligation to acquire tax residency. This is because you can spend less than 183 days in Spain, you only pay taxes on the investment made, and you can maintain the rest of your taxation in the territory that you consider most advantageous.
This residence is a consequence of Law 14/2013, which came into force in 2013 in a context of economic crisis, with the purpose of promoting the growth and reactivation of the country by attracting foreign investment.
Impact of the Elimination of the Golden Visa
Therefore, it is quite likely to venture that the Government's decision to eliminate the Golden Visa in Spain will only affect real estate investments. So foreign investment will have other financial means to obtain these residence permits.
The Government has opted to eliminate this visa in order to take measures to stop real estate speculation and facilitate access to housing, which according to experts, is unlikely to have an impact in the way expected. Sector specialists highlight that the positive results will be minimal or non-existent; basically because sales for these amounts are real estate operations that represent a tiny share of the market.
Specifically, because in the national territory a large volume of sales is not carried out for prices higher than the stipulated minimum, 500,000 euros.
Future of Investors with Golden Visa
President Pedro Sánchez assured that the Council of Ministers will study the report this Tuesday to modify the Golden Visa. Experts point to the possibility that only the visa for home purchases will be eliminated and maintained for the rest of the investments. There is still no confirmation of when this measure will be carried out, which must first go through the Council of Ministers.
On the other hand, it rules out that the extinction of this visa will affect investors who have already obtained it. «Whoever has it granted, due to the legal principle of non-retroactivity, should have no effect. You cannot remove a right already granted
What consequences does the elimination of the Golden Visa bring in Spain?
Like any relevant change in regulations related to the real estate market, the big question now is the impact that this imminent decision will have.
It is important to inform that although this is an attractive way to access a residence in Spain, there are other ways to acquire a home in Spain. Among the main ones we can mention the non-profit residence and the digital nomad visa.
Contact SigmaSeis Abogados so we can guide you on the best possible path for you.
EN 
ES_ES