Recent reports from the Spanish government suggest that the Spanish Golden Visa programme, which offers residency to non-EU investors, is under scrutiny and may soon undergo significant changes, including potential discontinuation. As a result, we are advising our clients and interested investors to consider acting swiftly if they wish to secure a Golden Visa through investment in Spanish real estate.
Introduced in 2013, the Golden Visa programme was designed to attract foreign capital to Spain, particularly to boost the real estate market after the financial crisis. Investors can qualify for the visa by purchasing real estate worth at least €500,000, investing €2 million in Spanish public debt, or placing €1 million in a Spanish bank or in shares of Spanish companies.
This visa offers the right to reside in Spain, and by extension, travel within the Schengen Area, making it extremely attractive to non-EU citizens also wanting the option to live and work throughout Europe. It also sets a pathway towards permanent residency and potentially citizenship, subject to fulfilling certain conditions such as maintaining the investment and residing in Spain for a number of years.
However, recent pronouncements suggest that the Spanish government is planning to end this scheme. This decision aligns with similar actions in other European countries, such as Portugal and Ireland who have scrapped their versions of the scheme and is driven by concerns over local housing market impacts and allegations that such programmes allow inflows of illicit funds. If the programme is indeed phased out, current or prospective investors might face a closing window to apply.
As it appears there is a very real possibility that the Golden Visa scheme will come to an end, we are advising clients and prospective investors to consider expediting their application processes to leverage the existing benefits.
Understanding the specifics of the investment requirements and staying abreast of the legislative changes is crucial in navigating this shifting landscape. For those looking to invest, the current period may represent the last chance to secure a Golden Visa before potential new regulations take effect.
If you are looking to take advantage of the Golden Visa, we advise you to talk to our knowledgeable real estate experts sooner rather than later. However you are looking to purchase a property in the beautiful area of Marbella, we are waiting to assist you in your journey.