Golden Visa Spain: perfect time to apply before legal changes!

If you are considering investing in Spain and obtaining residency through the Golden Visa, now is the perfect time to act. The Spanish Government has announced a potential reform that could eliminate the option to acquire this valuable permit through real estate purchases. This modification could drastically reduce the investment opportunities and immigration benefits currently enjoyed by thousands of foreign investors. 

At Gentile Law, we understand that these changes create uncertainty, but they also present a unique opportunity for investors to secure their Golden Visa before the new regulations take effect, should they be approved. If you are thinking about taking advantage of this opportunity our team of expert immigration lawyers is here to offer guidance and assistance at every step of the process, ensuring a fast and successful application. 

Given that the Spanish Congress of Deputies is currently evaluating the potential elimination of the Golden Visa, time is of the essence, 

In this article, from the Immigration Law Department at Gentile Law, we provide a detailed analysis of what this legislative change means, its potential impact, and what options foreign investors have in light of this scenario. 

What is the Golden Visa in Spain? 

The Golden Visa is a residence permit granted to non-EU, EEA, or Swiss citizens who make a significant investment in Spain. Introduced by Law 14/2013, this visa has been one of the most attractive ways to obtain legal residency in Spain through investment since its creation. 

The program offers numerous benefits, including the right to reside, work, and study in Spain, as well as freedom of movement within the Schengen Area. It also allows for the possibility of indefinite residency extensions, facilitating family reunification, and eventually obtaining Spanish citizenship through residency. All of this comes with a streamlined and expedited process that, to date, has enabled thousands of investors to enter Spain. 

Benefits of the Golden Visa

For many investors, the benefits of the Golden Visa are undeniable. Among its main advantages are: 

• Residence in Spain: Golden Visa holders can legally reside in the country without the neer to meet the residency or tax requirements for renewal. 
• Free movement in the Schengen Area: A key advantage is the ability to travel without restrictions across the 29 countries that are part of the Schengen Area.
• Access to permanent residency and citizenship: After a few years of residency, it is possible to obtain permanent residency and, eventually, apply for Spanish citizenship. 
• Quick processing: The Golden Visa application is resolved within 20 business days, making it one of the fastest residency permits to process in Spain. 

In addition, investors can extend these rights to their family members, including spouses, financially dependent children, and parents over 65 years old who are also financially dependent. 

Proposed Golden Visa Reform: what changes are expected? 

The most recent announcement by President Pedro Sánchez proposes eliminating the possibility of obtaining the Golden Visa through real estate investments, specifically the purchase of properties in Spain valued at €500.000 or more. Since 2013, this type of investment has been the most commonly used by foreigners to access the permit, representing 96,18% of the total Golden Visa granted. 

This proposal, which must still be debated in the Congress of Deputies, would, if approved, constitute a major shift in Spain`s immigration regime and its policy on attracting foreign capital. Investments in luxury properties in cities such as Madrid, Barcelona, and the Costa del Sol have fueled many real estate transactions in recent years, and the elimination of this incentive could discourage further investment in the sector. 

Potential impact of the reform

The elimination of the Golden Visa through real estate investment could have significant repercussions. On one hand, it would directly affect investors from countries such as China, Russia, the United States and Mexico, who have been the primary beneficiaries of the program. On the other hand, it could reduce the volume of foreign investment in the Spanish real estate market, which has reached millions in recent years. 

Furthermore, while other avenues to obtain the Golden Visa would remain, such as the purchase of shares in Spanish companies or investment in public debt, these alternatives may not have the same appeal or scope as real estate investment, thus limiting the options for those looking to establish themselves in Spain through such investments. 

Is it still possible to apply for the Golden Visa through real estate investment? 

Despite the government`s announcement, it is still possible to apply for the Golden Visa through real estate investment. The proposed changes have yet to be approved by Congress, meaning the interested investors have a window of opportunity to submit their applications. 

However, given the uncertainty about when these changes will be implemented, it is highly recommended that interested parties act swiftly. The application process remains unchanged, and, if approved, a legislative reform of this magnitude could come into effect without a long transition period, potentially complicating new applications under the current system. 

How to apply for the Golden Visa

Currently, foreign investors can apply for the Golden Visa through two main avenues: 

1. At the Spanish Consulate in their country of residence, obtaining an initial one-year visa that allows them to enter Spain and apply for the residence permit. 
2. At the Large Companies Unit in Spain, if they are already legally in the country, where they can obtain an initial three-year residence permit. 

In both cases, the application process if efficient and allows applicants and their families to settle in Spain quickly. 

The Golden Visa has undoubtedly been one of Spain`s most effective tools for attracting foreign investment and talent in recent years. However, the reforms proposed by the government, which aim to eliminate the real estate investment route, could drastically change the country`s immigration landscape. 

At Gentile Law, our team of expert immigration lawyers is up-to-date with these changes and offers personalized advice for foreign investors who wish to take advantage of the current opportunities or prepare for future reforms. If you have any questions or need more information about how the potential withdrawal of the Golden Visa might affect you, don`t hesitate to contact us. We are here to help you navigate this evolving legal framework.