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Although the Spanish government has announced that it will end the housing-related Golden Visa, the demand for luxury properties continues to increase, and has actually experienced an upturn.
The official announcement was made in April 2024 following a bill presented in the Spanish Congress of Deputies. It is important to note that it will have to go through several parliamentary procedures and another chamber, the Senate, before it can become law. Therefore, there is no early implementation date.
This easy way of obtaining residency by investing heavily in the country’s real estate is not something new in Spain. Nor is its revision a novelty. Similar laws have already been amended in other countries, such as Portugal, England and Australia.
Why is there a conflict with the Spanish real estate-related Golden Visas?
Since 2013, almost 15,000 visas of this type have been granted in Spain, according to data from the Ministry of Housing itself. Alarm bells went ringing when in the last two years applications soared exponentially. The war in Ukraine generated a higher registration of requests by Russian citizens (26%) and Ukrainians (3.8%); at the same time, those from other nationalities that usually have more complications to obtain residency in the country also increased. We are talking, for example, about Chinese (37%) or Iranians. But, in reality, the origin of the applicants is very varied and includes North Americans, Venezuelans, Mexicans, English and Argentines, among others.
The argument offered by the Spanish authorities for the possible abolition of the possibility to purchase a luxury home in exchange for several years of residence is that: “it stresses the market, increases the overall price and encourages speculation”. In the eyes of the government, this is hurting the average Spanish buyer and hinders the country’s current right to housing solutions.
Moreover, the areas considered to be under stress are not evenly distributed throughout Spain. Demand is concentrated in cities, such as Barcelona, Madrid, Malaga, Alicante and Palma de Mallorca.
Nevertheless, it should be noted that the luxury housing market in Spain accounts for only 5% of the total market. It is, therefore, strange to blame the higher end of the property market for the entire impact of this strain. The access to housing problem (buy or rent) for the Spanish population involves much more complex issues. Of course, implementation or revision of a law is always possible, but not necessarily urgent.
How does the Golden Visa still in force work?
The visa has several categories when it comes to obtaining a residence permit in Spain for a certain period of time. In the real-estate paragraph, it is granted to foreigners from outside of the European Union who buy of real estate with a value equal to or greater than 500,000 euros.
But this permit can also be obtained by acquiring Spanish debt, shares of national companies and by means of other types of investments. These last items are not under government review. To get full advice, request an appointment with us and we will accompany you through the real-estate process with the assistance of our legal experts.
What are the advantages of the Spanish Golden Visa?
With the visa already approved, both the real estate investors and their families can reside, work or carry out business activities in Spain. Of course this is a better option than a tourist visa, because it does not limit the stay in the territory of Spain and allows free movement within the Schengen area. It also makes it easier to benefit from the Spanish educational and health system, although in the latter case a private insurance must also be purchased.
It looks like there is still time until October
With this post, we would like to inform you about the latest news related to the Golden Visa program in Spain in connection with the real estate world, until June 2024; and also to underline that no official abrogation date has been specified yet. Until the new modified law is published in the BOE (Official State Gazette), no new aspects will come into force.
The applications that are in process will continue to be processed and those who wish to apply for such visas are still on time. There are unconfirmed rumours that, by October 2024, the current law may no longer be extended. But, until there are new official announcements, we cannot be sure. We at Christie's International Real Estate will be monitoring the situation and will keep you updated on any upcoming changes.
We remind you that we are the experts in high-end properties in Marbella, Malaga and the rest of the Costa del Sol, as well as in Madrid capital city.
