Like many residency by investment programmes in Europe, the Spanish Golden Visa has been a big topic of debate lately. In April 2024, Prime Minister Pedro Sánchez put forward a proposal to shut down the investor visa.
Despite gaining support from the Spanish Council of Ministers, discussions about ending the programme only kicked off in July. Come September, the Spanish Congress will consider the bill proposal. Here's what we know so far about this potentially major change to Spain's resident permits.
An overview of the Golden Visa in Spain
Spain introduced its Golden Visa in 2013 as part of efforts to attract foreign investment during the aftermath of the global financial crisis. The programme has been offering residency to non-EU nationals investing at least €500,000 into the Spanish economy.
Since its inception, it has been a popular route for wealthy individuals looking to gain a foothold in the European Union, with over 15,000 golden visas granted over the past decade.
Why the push to abolish the Spanish Golden Visa?
The Spanish government cites several reasons for ending the scheme. Firstly, the ruling regime says the programme hasn't delivered as much economic boost as they initially hoped for.
Secondly, and perhaps more crucially, the Golden Visa investments have run head on with a housing crisis in the country. The current real estate stock isn’t enough to house both locals and immigrants at affordable price points. This has led to growing discontent among Spanish citizens, particularly in major cities like Madrid and Barcelona.
Lastly, there's mounting pressure from the European Union to scrutinise such programmes. That’s especially off the back of concerns about the potential for money laundering and tax evasion through these schemes.
What's on the chopping board?
According to a recent report, the ruling Spanish Socialist Party plans to go beyond just eliminating the property investment route. The proposal wants to abolish all residency by investment pathways.
This would essentially include ending Golden Visas granted for property investments of €500,000 or more. The same goes for investments in bank deposits, public debt purchases, shares or investment funds, and business projects of general interest.
Timeline of events
The move to end the Golden Visa scheme has been gathering momentum throughout 2024. In April, PM Sánchez first proposed shutting down the programme, gaining initial support from the Spanish Council of Ministers. However, it wasn't until July that discussions began in earnest.
The next crucial date in this timeline is September 2024, when the Spanish Congress is set to consider the bill. This will be a big moment for the future of foreign investment in Spain and could mark the end of the golden visa.
What happens next?
As it stands, the Spanish Congress won't consider the new bill before 9th September 2024. This means that until then, investors can still apply for a Golden Visa under the current rules. However, those considering this route should be aware of the potential for shifting changes on the horizon.
The coming months are likely to see intense debate and lobbying from various stakeholders. Property developers, real estate agents, and current Golden Visa holders may push back against the proposed changes. Meanwhile housing advocates and those concerned about economic inequality are likely to support the move.
How we can help
At International Wealth Ventures, we're keeping a close eye on these developments. Our team of experts is ready to offer guidance every step of the way.