The announcement by the Spanish government that the Golden Visa would come to an end this year caused a significant increase in the number of people interested in acquiring real estate, with the goal of obtaining the “Golden Visa” while it’s still available.
As reported by El Plural, the exact date for the end of the Golden Visa is still unclear. However, this hasn’t dampened interest in owning properties in the Iberian country, to the point that some buyers don’t even visit their potential acquisitions in person: property owners offer “video tours” that can be reviewed online.
According to data from the Spanish Ministry of Foreign Affairs, about 94% of Golden Visa applications have involved real estate deals. The investors mostly come from the United States, China, Mexico, and Japan, and they are characterized by paying “in cash,” without mortgages or other forms of financing.
Why buy property in Spain?
In the case of Mexican investors, El Debate points out that cities like Madrid attract interest due to their status as a “key economic hub” in Europe, with competitive prices compared to other capitals like London or Paris in the real estate sector.
They also see this market as a good opportunity to diversify their assets. Given the volatility of the Mexican economy, they claim, Spanish real estate is a more stable and predictable option.
It’s also noteworthy that investors aren’t limited to purchasing residential properties; they are also buying commercial spaces, offices, hotels, and land suitable for urban development. This helps diversify risk and provides additional types of returns.
Chileans, Costa Ricans, and Venezuelans are also investing
The interest in the Madrid real estate market is not limited to Mexicans. There has been an increase in Costa Ricans, Chileans, and Venezuelans, with the latter group especially driven by the political and economic instability in their country, particularly after the elections.
As for Chileans, until 2019, 80% of their investments remained within the country, with only 20% going abroad. Currently, the trend has reversed, with 80% now focused abroad, reaching over US$ 10 billion by 2022.
A significant portion of that amount is being invested in Spain, where the Golden Visa is one of the main motivations. This is especially true for Latin Americans in general, as with just 2 years of legal residency, they can apply for Spanish citizenship, and thus obtain a Spanish passport (in contrast to the 5 years required for applicants from other countries).
Is it profitable to invest in Spain?
According to the “European Investor Intentions Survey 2024,” Spain ranks fourth among the 10 most attractive European countries for investors, after the United Kingdom, Germany, and Poland. Additionally, the report lists Spain twice: both Madrid and Barcelona are among the top 10 favorite European cities for investment (in 3rd and 7th place, respectively).
For its part, Santander Trade highlights Spain’s appeal to investors due to the rise in tourism, its highly efficient transport network, the development of renewable energies, and its cultural proximity to Latin America, as well as a restructured financial sector.
In conclusion: Spain continues to be one of the most profitable markets in Europe, and with the imminent end of the Golden Visa, many investors are looking to diversify their assets through the purchase of residential and commercial properties, including land and hotels. Additionally, the possibility of obtaining Spanish citizenship in just two years is an added attraction for Latin Americans.
Schedule a meeting with our team if you’re interested in expanding your investment portfolio in the Old Continent, or if you want to start a new life with your family thanks to the Golden Visa.
We are experts in international mobility and would be happy to help you achieve your goals.
