End of the Golden Visa in Spain: End of the Golden Age of Investor Residencies
In early 2024, the Government announced its intention to end the Golden Visa in Spain.
This is a measure aimed at easing the pressure on the real estate market. real estate market This in turn could also supposedly have a positive impact on the prices of properties for the middle and lower classes.
However, not all professionals and market insiders believe that this decision will have a major 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 mean the granting of a residence visa in Spain, whose main requirement is focused on significant capital investment 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) amount 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 either to renew it or to maintain it, it only requires that you visit our country once a year, nor is there any obligation to acquire tax residency. This is due to the fact that you can spend less than 183 days in Spain, you are only taxed on the investment made, and you can keep the rest of your taxation in the territory you consider most advantageous.
This residency is a consequence of Law 14/2013, which came into force in 2013 in a context of economic crisis, with the purpose of favoring the growth and reactivation of the country by attracting foreign investment.
Impact of the Elimination of the Golden Visa
Therefore, it is quite likely that the Government’s decision to eliminate the Golden Visa in Spain will only affect real estate investments. Thus, foreign investment will be relying on other financial channels to obtain these residence permits.
The Government has opted for the elimination of this visa in order to take measures to curb real estate speculation and facilitate access to housing, which, according to experts, is unlikely to have the expected impact. Industry experts point out that positive results will be minimal or non-existent, basically because sales for these amounts are real estate transactions that represent a very small share of the market.
Specifically because a large volume of sales and purchases are not carried out in the national territory for prices above the stipulated minimum, 500,000 euros.
Future of Golden Visa Investors
President Pedro Sanchez assured that the Council of Ministers will study this Tuesday the report to modify the Golden Visa. Experts point to the possibility of eliminating only the visa for home purchases and maintaining it for all other investments. There is still no confirmation as to when this measure will be implemented, which must first pass through the Council of Ministers.
On the other hand, he ruled out that the termination of this visa will affect investors who have already obtained it. “Whoever has it granted, by the legal principle of non-retroactivity, it should have no effect whatsoever. A right already granted cannot be taken away
What are the consequences of the elimination of the Golden Visa in Spain?
As with any relevant change in the regulations related to the real estate market, the big question now is the impact that this imminent decision will have.
It is important to point out that although this is an attractive way of acquiring a residence in Spain, there are other ways of acquiring a property in Spain. Among the main ones we can mention the non-profit residency and the digital nomad visa.
Contact SigmaSeis Abogados so we can guide you on the best possible path for you.
