Just as previously reported in April, in a landmark decision, Spain’s Congress of Deputies has passed a new law terminating the Golden visa program that has been in place since the administration of Mariano Rajoy. This program allowed non-EU residents to obtain Spanish residency permits through substantial investments in Spanish real estate and other assets.
The new legislation, part of a broader “Law for the Efficiency of Justice,” was approved during a full session of Congress and will now proceed to the Senate for further consideration. This move comes after a seven-month legislative process initiated by Spanish Prime Minister Pedro Sánchez, who announced plans to phase out these visas last April.
Specifically, the amendment eliminates articles 63 through 67 of the Law 14/2013, which provided the framework for obtaining a ‘golden visa’ through various investment channels, including real estate purchases of over €500,000. These changes were introduced behind closed doors and were passed without the presence of Popular Party (PP) deputies, who had suspended their participation in Congress due to a national tragedy caused by severe weather.
Despite the program’s end, a transitional provision has been included to honor applications submitted prior to the law’s effective date, ensuring that current applicants will not be affected. Once the law comes into force, presumably in January 2025, new residence permits will no longer be granted in exchange for this type of investments.
The expected impact
Since 2016, approximately 11,000 such visas have been issued. Experts believe the impact of this legislative change on Spain’s residential market will be minimal, given the relatively small number of visas issued annually compared to the overall market size. However, this does represent a significant policy shift, impacting not only those investing in real estate but also those who have invested in Spanish public debt, shares, or business ventures under the previous system.
What investment types were eliminated?
Investment avenues previously eligible under the ‘golden visa’ program included:
- Real estate investments exceeding €500,000.
- Investments of over €2 million in Spanish public debt.
- Contributions of more than €1 million to Spanish companies or business projects deemed of general interest.
- Investments of similar amounts in Spanish investment funds or bank deposits.
The law also strips content from regulations concerning the accreditation of investments, the effects and duration of residency visas, and residency authorizations for investors.
This decision aligns with broader European trends where countries are scrutinizing and, in many cases, ending investment-based residency programs amid concerns over security and economic fairness. Spain’s move away from the ‘golden visa’ marks a pivot towards prioritizing investments that contribute more directly to the country’s economic fabric and social welfare, beyond just asset-based contributions.
Essential Facts about Spain’s Golden Visa
Over a decade, Spain issued over 14,000 Golden Visa residency permits. From 2013 to 2023, a total of 14,576 Golden Visas were granted.
The program predominantly attracted applicants from China and Russia, surpassing those from the UK, USA, Iran, Venezuela, and Mexico.
In the final two years, there was a notable surge in Golden Visa applications, with 5,290 permits issued in 2022 and 2023, representing over one-third of all permits throughout the program’s duration.
