Spain plans to end Golden Visa’s Real Estate option

Following recent announcements by the Spanish government regarding plans to phase out the Golden Visa, we want to provide clarity and support to all our current and future clients who may be wondering how this could affect their investment and residency plans in Spain.

The Golden Visa program has traditionally offered non-EU investors a pathway to residency through significant capital investments in Spain. Although the government has signaled intentions to phase out the program, it is important to note that these changes have not yet been enacted into law. Applications that are currently underway and those initiated before the implementation of any changes will be processed under the existing legal framework.Until now, the Golden Visa has offered the possibility of obtaining residency in Spain through various investment routes, including real estate, financial assets, and business projects.

Investment options for prospective applicants

For those yet to apply or finalize their investments, the following options remain viable and attractive under the current regulations:

1. Financial Assets:
o Public Debt: Investment of at least two million euros in Spanish public debt.
o Equity in Spanish Companies: A minimum investment of one million euros in shares or social participations of active Spanish companies.
o Investment Funds: At least one million euros in regulated investment funds, venture capital funds, or closed-end investment funds established in Spain.
o Bank Deposits: One million euros in deposits at Spanish financial institutions.

2. Real Estate Investment:
• Invest a minimum of 500,000 euros per applicant in Spanish real estate, a consistently popular option among international investors. (This pathway appears to be at risk of discontinuation)

3. Business Projects:
o The program also supports those initiating a business project that is expected to have a significant positive impact on the Spanish economy. This includes creating jobs, contributing to technological and scientific innovation, and providing socio-economic benefits to the region where the project is developed. Such projects require a favorable report before applying for the visa or residency

Advice for Investors nearing property completion

For investors who have not yet formalized their property purchases but have entered into a pre-contract with a guarantee (secured by earnest money or other legal methods), it is essential to proceed cautiously:

• Ensure that you have a certificate from a financial institution in Spain verifying that you have an unavailable bank deposit covering the necessary amount for the acquisition.
• Such arrangements might qualify you for a temporary residency visa, valid for up to six months, to facilitate the completion of the property purchase.

Anticipating regulatory changes and transitional measures

We encourage vigilance as the legislative process unfolds. The specifics of any transitional measures will be essential in determining the treatment of both ongoing and new applications. We recommend maintaining close communication with our team to navigate these changes effectively.

Fuster & Associates is dedicated to providing expert guidance through the current and forthcoming legislative changes. We will continue to monitor developments closely and ensure that your investment and residency endeavors are managed with the utmost care and strategic foresight.

At Fuster & Associates, our team of experts in international mobility and immigration law is at your disposal to explore these options and determine the best investment strategy according to your personal and professional goals. We are here to advise and adapt to any legislative changes, ensuring that your investment and residency experience in Spain is successful and smooth.

We invite you to contact Mª José Sanchez, our visa expert, directly to discuss your specific circumstances and how we can help you achieve your goals in this new context.

We want to help you navigate all the legal complexities that come with your home buying in Spain, but this article is legal information and should not be seen as legal advice.