The Spanish government has announced a significant decision that directly impacts the foreign property investment landscape in Spain: the end of the ‘Golden Visa’ programme.
The golden visa programme allowd foreigners who made an investment of at least 500.000 euros to reside and work in Spain for a period of time of three years, with the possibility of renewing their period of residence in the country.
However, the cabinet announced on April 9th the suspension of the issuance of Golden Visas for real estate investors. In 2013, when the programme was implemented, its goal was to attract foreign investment to help cushion the effects of the economic crisis. Now, however, the aim is to ensure access to housing for Spanish citizens and to tackle the increase in prices in the real estate market, especially in the big cities.
How will this impact on investors?
The Minister of Housing, Isabel Rodríguez, has highlighted that, when the news went on air, 94% of the golden visas issued up to date are related to the purchase of property. However, this is not the only was someone could obtain it. Another example would be financial assets investment.
Thus, although there will be changes to this policy, foreign will still be eligible for the Golden Visa if they make significant investments of at least 2 million euros in government bonds or shares or 1 million euros in investment funds or deposits.
Nevertheless, this announcement marks an important change in Spain’s immigration and economic policy. Since its implementation, the Golden Visa programme has been a key tool for attracting foreign investment to the Spanish real estate market, especially in urban areas such as Madrid, Barcelona, Malaga, Alicante, the Balearic Islands and Valencia.
Therefore, the elimination of this programme raises questions about the future of foreign investment in the Spanish real estate sector and how this could affect the local economy and the labour market. Indeed, a priori it is expected that this policy change will lead to a reduction in foreign investment.
What are the next steps?
Investors looking for a Golden Visa based on property should consider applying as soon as possible, while the current criteria remain in place. Further details are still awaited from the Spanish authorities, including the end date of the programme, its impact on existing Golden Visa holders, as well as applicants in the process.
Our commitment: Providing expert support and advice
At Leialta, we understand the concerns and challenges that this new government measure may pose for foreign investors interested in the Spanish property market. Our highly qualified team is here to offer expert advice and support at this time of change. From conducting thorough due diligence to completing the necessary administrative procedures, we are committed to ensuring that your experience in the Spanish property market is as smooth as possible.
So if you are considering buying or selling a property in Spain, please do not hesitate to contact us for more information on how we can help you navigate these new challenges and achieve success in your property investment.
