Political pressure on the Spanish government to end the Golden Visa
After several months of uncertainty, the Spanish government presented a new proposal that would end the so-called Golden Visa, a measure aimed at combating high housing prices. It would completely eliminate not only the real estate option but also the investment in company shares or government bonds.
The Prime Minister, Pedro Sánchez, announced last April his intention to abolish this rule, which grants residency to non-EU citizens who invest a minimum of €500.000 in real estate. However, since no specific date was set and no bills to that effect were presented at the time, the immediate effect of the announcement was a strong backlash. increased demand for luxury homes connected with the Golden Visa.
Another element of uncertainty It was added in May, when the ruling coalition was forced to withdraw its draft reform of the Land Law, an initiative that included a reform that would put an end to the "golden visa".
This lack of progress, three months after the announcement, led to political groups such as Sumar demanding action from the Government. advance in the repeal of the Golden Visaaccusing it of "encouraging speculation, increasing housing prices, and putting pressure on the areas."
However, the Executive's decision also drew criticism, with some pointing out that the "golden visa" has nothing to do with rising housing prices. Among other things, this is because it is more closely linked to... with luxury properties, and represents less than 1% of commercial transactions related to housing nationwide.
Is the second time the charm?
At the end of July, the government led by Pedro Sánchez decided to insist on the termination of the Golden Visa, this time through an amendment to the organic law on efficiency measures in justice and consumer protection.
The legal initiative Its objective would be to completely eliminate the possibility of residency by investment: both the option to buy real estate and the option to invest in Spanish public debt securities or in shares or equity interests of Spanish companies would be rendered ineffective.
The discussion process for this amendment is expected to begin on September 9th.
New amendment, new criticisms
The Spanish government's latest offensive renewed criticism of the measure, for example, from actors in the real estate sector, who believe that the elimination of the Golden Visa It will not have an impact in housing prices, and that it sends a bad signal to foreign investors.
Others point to the international situation and indicate that it is likely that up to half a million Venezuelans with high purchasing power They could choose Madrid as their new residenceThis comes as a result of the recent elections in the Caribbean nation. The end of the Golden Visa program would jeopardize this and other opportunities to attract foreign investment.
For her part, sociologist Kristin Surak, an expert on Golden Visa issues, believes it is possible that The elimination of the visa requirement will never materialize.For her, this “is nothing more than an electioneering measure and has such a small impact that it is of no interest beyond votes,” and she affirms that the price of housing will not fall because of the end of “golden visas.”
What is our recommendation?
As we have previously pointed out from AIM Global, The main thing is to call for calm.Until there is a law, discussed by Parliament and officially enacted, the current regulations remain in force: from the minimum amounts to the investment options.
This means that, if you have the resources and the topic interests you, The time to invest is nowDon't delay any longer!
On the other hand, Golden Visas that are already being processed should not be affected by the new law, and a transition period is likely to be established for these cases, including those submitted most recently.
Schedule a meeting with our team Start your journey to the Golden Visa right now. We'll be with you every step of the way and help you find options that match your investor profile.
