Proposed Changes to the Golden Visa in Spain

In an announcement made by Pedro Sánchez, the president of Spain on Monday 8 April, the highly popular Golden Visa, acquired by investment in residential real estate is to be withdrawn. The Golden Visa, introduced by several European countries as well as Spain, permits the applicant to obtain residency when they invest in a range of commercial investments or purchase a mortgage-free property valued at €500,000 or more.

Pedro Sánchez further stated "We will start the process to withdraw this legislation that allows for someone to get a residency whenever you invest over €500,000 in property. We will take the necessary steps to guarantee that housing is a right and not a speculative business." Pedro Sánchez’s cabinet may, on Tuesday, take the first steps towards removing the criteria related to residential real estate purchase with regard to the Golden Visa. However, there is no certainty as to how quickly the amendment to the Golden Visa will take place. There will no doubt be considerable debate before these proposed steps are enacted, regardless of the suggested detriment that is implied by recent comments of Pedro Sánchez.

The areas in Spain that have apparently been the target of most foreign nationals’ residential real estate purchases are the popular tourist areas of major cities such as Barcelona, Madrid, Malaga, Alicante, Valencia or Palma de Mallorca, where 94 out of 100 successful holders of a Golden Visa choose to buy property which Pedro Sánchez and the Spanish government believes “…drives us to disaster and more inequality, making homes inaccessible for many families and young people…" Similar issues have led to Ireland, the Netherlands, Portugal, Greece and Malta to withdraw the Golden Visa option.

Andreu Marin Muñoz, a senior associate in the Barcelona office, commented “Spain will still welcome those who plan to invest in innovation, create jobs, improve productivity and boost the economy. Spain is committed to driving economic growth. Financial investments can also be a good chance for these potential investors to obtain a legal permit with excellent advantages. Moreover, some Spanish regions such as Madrid or Andalucía still offer advantages for foreign investors in terms of tax or inheritance law.”

In addition, financial investments can also be a good opportunity for these potential investors to obtain a legal permit with excellent advantages. Some Spanish regions, such as Madrid or Andalusia, offer tax advantages for foreign investments.

Foreign nationals can invest in a new business that creates employment opportunities for Spanish citizens, particularly those that contribute to innovate areas in such fields as science or technology which will make a significant socio-economic impact within Spain. The current criteria for a Golden Visa for commercial investment are as follows. A financial investment of:

Golden Visa

• Two million euros in Spanish public debt securities,
• One million euros to be invested in company shares or stock of Spanish capital companies that are active and currently doing business.
• One million euros to be invested in closed-end investment funds or venture capital funds set up in Spain, that are included either within the scope the Act related to Collective Investment Institutions, or the Act 22/2014, of 12 November that regulates venture capital entities, other closed-end collective investment entities
• One million euros in the bank deposit of a Spanish financial institution.

Alternative Commercial Visas

There is a wide range of visas available to foreign nationals wishing to relocate to Spain for commercial purposes on a temporary or leading to permanent basis including visas for:

• Entrepreneurs and business activities
• Highly skilled professionals
• Intra-company transfer
• Training or research
• Family members of holders of commercial visas
• Digital nomads visa
• Non-lucrative residence visa. After 1 year of residence, this legal permit can be modified to a work or self-employed visa.

Additionally, there are working visas applying to particular areas of work such as au pairs, working holiday visas and student visas.

Giambrone & Partners’ expert immigration lawyers have a wealth of experience in assisting foreign nationals with their visa applications. Our lawyers have developed close relationships with the Spanish authorities and are adept at ensuring that an application proceeds smoothly with no breaches or errors. Our expert lawyers will be by your side to assist you at all times with all aspects of any legal matters that could impact on your application.

Andreu Marin Muñoz is highly regarded for his extensive experience and expertise in immigration law in Spain having had many years of involvement in dealing with a wide range of immigration cases. His comprehensive knowledge has enabled him to resolve complex issues relating to a wide range of types of visa applications. Andreu's expertise has enabled him to successfully assist clients obtain visas and legal status within Spain.

If you are planning to relocate to Spain or buy a property in Spain and would like to know more, please contact us at clientservices@giambronelaw.com or please click here.