Spain’s housing minister, Isabel Rodríguez, declared on April 9 that steps are being initiated to dismantle the Golden Visa, which drew non-EU residents looking for Spanish residency through a minimum €500,000 investment in property or a business. Concerns are rising over the potential deterrent this could be for non-EU property investors in Spain.
Although this change complicates matters for UK nationals seeking to settle in Spain, it should be noted that the Golden Visa represents less than 10% of property sales to foreigners. Many non-EU investors are content with the existing 90/180-day rule or other available visa options.
What exactly is the Golden Visa, and who has used it since 2013?
The Golden Visa program grants non-EU individuals residency in Spain and free movement within the Schengen zone, provided they make an investment of at least €500,000 in Spanish property, without using a mortgage. The visa extends to the applicant’s immediate family and offers an initial two-year stay, extendable for five more years, and ultimately leads to permanent residency and citizenship. The uptake was mainly by Chinese and Russian investors, but the annual number of visas granted averaged below 1,000 until 2021.
What’s changing in the legislation regarding the Golden Visa?
The Spanish government plans to phase out the Golden Visa scheme, waiting for the legislative proposal to be approved.
Why is the Golden Visa being terminated?
Despite low usage from 2013 to 2021, recent years saw a surge, with over 2,000 visas in 2022 and more than 3,200 in 2023. Under political pressure linked to housing affordability for locals, the left-wing coalition government is leaning towards scrapping the program.
Is there a growing demand for Golden Visas in Marbella?
Indeed, interest has spiked from North American nationals who view Marbella as an attractive relocation spot. Without EU residency, however, moving is set to get harder.
What’s next for those who’ve applied for a Golden Visa but haven’t received it yet?
The outcome for pending applications remains uncertain, but it’s hoped that a cut-off date will be established to protect these applicants from negative impacts.
Is it still possible to apply for a Golden Visa at this time?
Applications are still accepted as the abolishment plan awaits formal ratification, which could face delays and opposition.
When do you anticipate this legislation will be enacted?
It’s unclear, but it seems reasonable to predict a 6-12 month timeframe before the changes take effect.
Will this affect your clientele?
EU passport holders are unaffected. Britons who follow the 90/180-day rule will also not face any issues. The most affected will be non-EU citizens seeking permanent Spanish residency through the Golden Visa.
What other residency options exist for non-EU buyers in Spain?
Alternatives include the Digital Nomad Visa for remote workers and the Non-Lucrative Visa, which is popular among retirees who can financially sustain themselves without working locally. These alternatives necessitate longer stays in Spain than the Golden Visa.
Is this the end of the Spanish dream for British or other non-EU buyers?
Life might be slightly harder for UK citizens aiming to relocate permanently to Spain, but other visas are available and most non-EU buyers comply with the current access rules or other visa types.
Does this news worry you about its impact on Costa del Sol’s property market?
It’s likely this announcement will prompt a last-minute rush to obtain the Golden Visa before it disappears, opening a temporary window for action.
