Is the Golden Visa program in Spain coming to an end?
Last week, Spanish Prime Minister Pedro Sánchez announced that he would begin the process of eliminating the Golden Visa program, as he believes that this measure would help improve access to affordable housing.
“We are going to take the necessary measures to guarantee that housing is a right and not merely a speculative business,” Sánchez said, in statements reported by El País.
As a general rule, the so-called "Golden Visa" allows individuals to obtain a residence permit, and subsequently Spanish nationality, with an investment of €500.000, typically through the purchase of property. In Spain's case, this program originated from a law passed in 2013, in response to the financial crisis in the real estate sector, with the aim of attracting foreign investment.
The discussion so far has been between increasing investment amounts, considering that the minimum of 500 thousand euros is no longer a high barrier, or completely eliminating the Golden Visa regime.
The government's announcement has not been without criticism.
The president of the Spanish Chamber of Commerce, José Luis Bonet, described the measure as “a demagogic and misguided gesture.” The business leader he told the press that Spain “has become a second home for millions of Europeans”, and that putting obstacles in the way of foreign investment seems “exorbitant” to him.
From the real estate sector It has been argued that ending the Golden Visa program “would not impact lower housing prices,” but rather the luxury market. María Matos, director of research at the real estate portal Fotocasa, asserts that ending the program “would not have a real impact on the regular residential sales market,” and that this “would lead to a significant decrease in foreign investment and real estate transactions in our country.”
What are the most immediate effects of this announcement?
The first thing to do is to call for calm. The entire legal framework for the Golden Visa remains in effect. Processes already underway are not threatened.
On the other hand, it is not uncommon for countries with residency and citizenship by investment programs to modify them, as has happened on several occasions with Portugal y GreeceIn Spain, the rule has remained almost unchanged since 2013.
However, the normal time required for an initiative to complete its processing in the Spanish parliament is at least 6 months to 1 year. For example, the recent Housing Law took 5 years from its introduction to its entry into force.
In very exceptional situations, the government can use emergency measures to make temporary changes while the legislation is still being debated in Congress. However, we reiterate, this would be exceptional and not the general rule.
The important thing to understand is that Spain's Golden Visa is still in good standing and you can still access its benefits. At AIM Global, we believe it's best not to postpone this decision and start the application process right away.
Don't leave this until the last minute; schedule a meeting with our team. We want to learn about your projects; we have the technical and human resources to help and support you throughout the entire process.
