Changes in the Spanish Golden Visa for Real Estate Investors

Recently, the President of the Government, Pedro Sánchez, announced the intention to eliminate the Golden Visa for real estate investment in Spain. 

This change could signify a significant alteration in Spain`s migratory regime, potentially affecting all foreigners seeking to invest in Spain and obtain one of the finest Spanish residence permits. 

The proposed changes by the government aim to eliminate the possibility of obtaining the Golden Visa for those acquiring real estate properties worth more than 500,000 euros. Since 2013, with the enactment of Law 14/2013, supporting entrepreneurs and their internationalization, the Golden Visa for real estate investment has become one of the most sought-after residence permits in the country. Since its inception, this residency permit has been the preferred avenue for foreign citizens seeking to obtain residency in exchange for substantial investment in the country. 

What is Spain`s Golden Visa?

Spain`s Golden Visa is a residence and work authorization for non-EU, EEA, or Swiss citizens who have made a significant investment in Spain. It`s initial duration is 3 years, extendable for consecutive periods of 5 years. 

What are the benefits of Spain`s Golden Visa? 

Obtaining Spain`s Golden Visa entails multiple benefits, including: 

• Right to reside, work, and study in Spain
• Free movement within the Schengen area (27 countries)
• No requirement for effective or fiscal residence in Spain 
• Possibility to obtain permanent residency 
• Possibility to obtain Spanish nationality through residency 
• Expedited processing of applications (20 business days)
• Extension of these rights to family members

How would the changes in Spain`s Golden Visa affect?

To apply for the Spanish Golden Visa, among other requirements, a significant investment in the country is demanded. 

A capital investment is deemed significant if it meets any of the following criteria: 

• Acquisition of real estate in Spain valued at €500.000 or more
• Purchase of shares or stakes in a Spanish company valued at over €1 million
• Maintaining a bank deposit in a Spanish financial institution worth €1 million
• Investment in Spanish government debt amounting to €2 million
• Undertaking a business project in Spain deemed to be of general interest

Since the implementation of the Golden Visa in 2013, a total of 14,576 residence permits have been granted for investment purpose, according to data released by the Minister of Housing, Isabel Rodríguez. Of these, 96.18% were granted based on real estate investments, as reported in a study by Transparency International Spain. 

The proposed changes by the government aim to eliminate the possibility of obtaining the Golden Visa through real estate investment. Should this reform succeed, foreign investment would be discouraged, significantly limiting the opportunity to obtain residency permits based on investment in the country. 

Spain has received substantial foreign investments in recent years, all driven by the Golden Visa, which would cease should the restriction of the Golden Visa be approved. 

The announcement of changes in Spain`s Golden Visa marks a milestone in the country`s immigration policy and real estate market, with significant repercussions for both the country and foreign citizens seeking to invest in the Spanish economy and obtain residency. 

Is it still possible to apply for Spain`s Golden Visa through real estate investment? 

Yes, it is still possible to obtain Spain`s Golden Visa through real estate investment. It is important to note that the proposed changes (elimination of the Golden Visa for real estate investment) are still pending presentation in Congress and approval. 

Given this situation and the potential limitation of Spain`s Golden Visa, it is advisable for all foreign investors interested in obtaining this residency permit to submit their applications as soon as possible. Doing so may help avoid potential consequences of the aforementioned changes. 

What is the process to apply for Spain`s Golden Visa currently? 

The application for Spain`s Golden Visa can be made through two different channels: 

1. Before the Spanish Consulate in the country of residence, which will resolve the application within 20 business days. If resolved favorably, a 1-year visa will be granted, allowing entry into Spain to apply for the corresponding residence permit, or

2. Before the Large Companies Unit, with the applicants of the visa being in Spain regularly. When applying from Spain, the large Companies Unit will resolve the application within 20 business days. If resolved favorably, a 3-year visa will be granted. 

In this latter option, visa applicants must be present in Spain at three moments: first, when submitting the visa application; second, for fingerprinting; and third, to collect their foreigner identity cards (TIE). 

At Gentile Law, we have advised investors from over 15 different countries in the investment and Golden Visa application process. Our extensive international experience and our team of highly qualified professionals allow us to understand the specific needs and concerns of each client, providing personalized and high-quality service.