Mission Statement: to assist the integration of foreign residents living in Spain
By Johanna Gardener •
Updated: 15 Nov 2024 • 14:53 • 3 minutes read
A bill to ban the Golden Visa scheme has been approved in Congress and is awaiting the next stage in Senate, a move which will affect non-EU residents who wish to invest in real estate in Spain in exchange for residency.
Spanish Congress has recently approved a bill that might be putting some high-end property investors, wishing to buy in Spain, on a new footing. Since 2013, The Golden Visa scheme has offered residency permits to non EU foreigners (particularly UK expats) in exchange for investing in real estate to the value of 500,000 euros or more. Other clauses included making a significant capital contribution in debt, funds, shares or deposit.
Golden Visa scheme awaiting approval by the Senate
However, this may very likely change as the law has been approved in its first parliamentary phase and is now waiting to be passed by the Senate. This decision has been on the cards for some time. Former minister and now governor of the Bank of Spain, José Luis Escrivá had shared the government’s intentions to eliminate the scheme and earlier this year, Prime Minister Pedro Sánchez seconded this.
10,528 Golden Visas have been authorized in the last eight years
Seven months later, these intentions seem to be shaping up into a reality as the first stage of the process to approve the Golden Visa ban has taken place. The question on everybody’s lips is: Why? The Golden Visa scheme certainly attracted significant capital to Spain. The Ministry of Housing and Urban Planning released data last April revealing that between 2016 to January of this year, 2024, 10,528 Golden Visas were authorized. This has amounted to a total investment worth of more than 10,014 million euros and an average investment amount of 951,203 euros. Not only that, but Golden Visas have been growing in popularity. The largest increase has been seen in the past two years – most probably due to a post-Covid 19 boom.
How to apply for a Golden Visa?
The Golden Visa scheme has allowed non-EU citizens to reside in Spain for 11 years since its initiation. With these grandiose investments from buyers injecting money into the country, granting residency would seem a fair deal. However, residency was never permanent. It was granted for the first two years and could then, like many traditional visas, be extended for periods of five years. To apply for the scheme, purchase of property (a registration certificate of ownership and of payment of charges to the Property Registry) has to be submitted. In the absence of official formalisation of a property purchase, a pre-contract agreement would be required with a certificate issued from a financial establishment in Spain.
Other alternative pathways to securing a Golden Visa for non EU citizens
Alternative pathways to obtaining the Golden Visa include an initial investment for a value equal to or greater than two million euros in public debts, or for one million euros or more in shares in Spanish companies or bank deposits in financial institutions in the country. Entrepreneurs launching national businesses considered to be of general interest are also eligible for the scheme.
The prospect of eliminating the Golden Visa scheme may seem concerning, especially for UK investors who are some of the most typical benefactors. Yet the UK is not the only country panicking. Since Spain announced plans to end its golden visa, Chinese investors have rushed to buy property in the country, a report by Spanish state broadcaster RTVE revealed.
The ban may have concessions or may completely eliminate Golden Visas
Time will tell whether the bill will be fully approved and how this will affect Non-EU members wishing to property invest in exchange for residency. Changes, if any, are likely to be implemented as of 2025 and may include concessions or a complete eliminate of the Golden Visa scheme.
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Written by
Johanna Gardener
Originally from Manchester, UK and with a degree in English with Modern Foreign Languages, she has been a permanent resident in Spain for the past 12 years. Many of these years, she has spent working as a secondary school teacher, as well as in journalism, editing and marketing. She currently lives in the historic centre of Malaga, where she enjoys writing, walking and animals.
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