The Spanish Golden Visa, also known as the Investor Visa, was introduced in 2013 as part of the Spanish government’s effort to drive economic growth and attract foreign investment. Applicants can obtain residency in Spain by investing at least €500,000 in Spanish real estate or at least €1 million in shares of Spanish companies (among other investments).
The Golden Visa doesn’t automatically grant investors Spanish citizenship. Rather, applicants who hold a Spanish Golden Visa and have been residents of Spain for ten years may be eligible to apply for citizenship.
However, proposed amendments to the investment scheme could scrap it entirely. In this article, we’ll examine how Spain’s Golden Visa works and what the Spanish government’s plans are for the future.
Current Golden Visa Regulations
The Spanish Investor Visa program offers qualifying individuals a renewable, temporary residence permit in exchange for their investment in the country.
Eligible investments include purchasing real estate, investing in Spanish companies, contributing to funds or bank deposits, creating employment opportunities, or making a qualifying investment in government bonds.
These include an investment of at least €500,000 in Spanish real estate, at least €1 million in shares of Spanish companies, invest €1 million on a bank deposit or investment fund, or € 2 million in Spanish treasury bonds.
Upon approval of the Golden Visa, you will be granted an initial Spanish residence permit for one year or two years if you visit Spain. This temporary residence permit can be renewed every five years. After residing in the country for five years, you can obtain permanent residency.
Proposed Elimination of the Golden Visa Spain
While the scheme has been somewhat successful, Prime Minister Pedro Sánchez unveiled a proposal in July 2024 that would see the elimination of the country’s Golden Visa.
According to the draft amendment to the Organic Law Project, the scrapping of the visa stems from almost all Golden Visa investments being made through the real estate option. This creates pressure on the local housing market, putting many properties out of reach of citizens.
During the amendment proposal submitted to the Spanish Congress, Sánchez said the decision was made to make affordable housing “a right instead of a speculative business.” He added, “Today, 94 out of every 100 such visas are linked to real estate investment…in major cities facing a highly stressed market and where it’s almost impossible to find decent housing for those who already live, work, and pay their taxes there.”
There is no indication as to when the Spain Golden Visa scheme will end, as the proposal is still in the article amendment phase. However, it will only remain in that state until September 2024, after which the legislative process will begin.
Spain isn’t the first European Union country to make significant changes to their golden visa. This policy shift aligns with actions taken by other EU countries, such as Portugal, Ireland, and the Netherlands, which have also tightened or eliminated their golden visa schemes to address similar issues.
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Frequently Asked Questions About Spain's Golden Visa
What is the golden visa program in Spain?
The golden visa program in Spain, introduced in 2013, grants residency to non-EU nationals who make significant financial investments in the country. This includes purchasing real estate worth over €500,000, investing €1 million in Spanish companies, or depositing €1 million in a Spanish bank account.
Why is Spain planning to scrap the golden visa program?
The Spanish government is working to tackle housing affordability and reduce speculation in the housing market. Prime Minister Pedro Sánchez has emphasized that housing should be a right, not a speculative business. The government believes that the golden visa program has contributed to rising property prices, making it difficult for many Spaniards to afford housing, especially in major cities.
When will the golden visa program be terminated?
While the exact date for the termination of the golden visa program has not been specified, the government has indicated that the reform will be discussed in Cabinet meetings. The timeline for the implementation of this change is still being finalized, with some projections pegging it at September 2024.
How will the termination of the golden visa affect current visa holders?
It is currently uncertain how the discontinuation of the golden visa program will impact current visa holders. The government has not provided specific information regarding whether existing visa holders will be allowed to maintain their residency or if they will be subject to new regulations.
Are there any exceptions to the planned termination of the golden visa program?
The government has not announced any specific exceptions to the planned termination. It is not clear yet whether the changes will also affect other types of investments, like business investments. The government seems to be primarily focusing on real estate investments.
