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Currently, the Golden Visa, a residence permit granted by Spain to those making significant investments in the country, remains a valid option. However, since April this year, it has come under scrutiny by the Spanish Government, echoing earlier developments in other European countries such as Portugal.
In recent months, proposals to eliminate this visa for investors—particularly in its real estate modality—have gained traction, citing negative effects on the housing market and potential security concerns for the community.
The Golden Visa, also known as the “golden residency permit,” is a residence and work permit aimed at non-EU citizens seeking to establish themselves in Spain through a significant capital investment. The current framework, including minimum investment thresholds and requirements, is regulated under Law 14/2013, of September 27, on support for entrepreneurs and their internationalization. This law outlines various investment modalities eligible for the permit.
As the legislative process progresses, both investors and the general public are anticipating the potential end of this program, which has facilitated foreign capital inflows to Spain since 2013. This article explores the current situation and the uncertain future of the Golden Visa in Spain.
Current Status of the Golden Visa in Spain
On April 9, 2024, the Spanish Government announced its intention to eliminate the Golden Visa in its real estate investment modality, arguing that it fosters real estate speculation and negatively impacts the housing market. Following this, on May 14, 2024, the Sumar parliamentary group presented a draft bill in the Congress of Deputies proposing the removal of this visa.
After several months of little progress, the issue resurfaced in July 2024 during the discussion of a bill originally unrelated to the Golden Visa. However, through the introduction of an amendment, the proposal extended to eliminating residence permits for all investment types, not just real estate.
Most recently, in early November 2024, the Justice Commission of the Congress of Deputies approved the report on the draft law, including the amendment to eliminate the residence permit by investment. Furthermore, on November 14, the Congress debated and approved the removal with 179 votes in favor. This legislative milestone brings Spain one step closer to abolishing this legal framework, pending Senate deliberation. If the text, along with the amendment, is approved, the Golden Visa will be officially eliminated.
On the international front, the European Union has adopted an increasingly restrictive stance on investment residence permits. In 2019, the European Commission published a report warning that such schemes pose “a threat to the security of other Member States and the EU.” In 2022, the European Parliament called for a gradual phase-out of these programs until their complete elimination.
Since then, several European countries, including the United Kingdom, the Netherlands, Ireland, and most recently Portugal in 2023, have abolished their Golden Visa schemes. Currently, only five EU countries continue to maintain similar systems: Malta, Hungary, Greece, Italy, and, for now, Spain.
The Futuro of the Golden Visa in Spain
In light of this scenario, the only thing that can be stated with certainty is that the future of the Golden Visa in Spain is uncertain. At present, there is no definitive information on whether the permit will be fully abolished, whether the elimination will target only the real estate modality or all types of investment, or the procedural steps that will follow.
However, recent developments suggest that the elimination will happen and will affect all investment modalities. That said, the legislative process is still ongoing, and changes to the current situation may yet arise.
What Happens to Ongoing Golden Visa Applications in Spain?
What is clear from all proposals made so far is that investors who submit their applications before the new legislation eliminating the Golden Visa comes into force will still be eligible for the corresponding visa or permit.
Moreover, these proposals emphasize that the abolition of the Golden Visa will not impact renewals, as they constitute an acquired right that cannot be impacted by retroactive punitive measures, which would contradict the application of general principles of law.
For initial applications, we recommend expediting the process as much as possible, given the uncertainty surrounding the timeline for abolishing this permit. It is essential to gather all required documentation promptly and submit the application without delay.
In this context, it is advisable to choose investment types that offer faster processing. Generally, real estate investments are less favorable due to the longer timeframes involved compared to alternatives such as bank deposits.
Finally, for both initial applications and renewals, specialized legal advice is indispensable. The regulations in this area are constantly evolving, making it critical to rely on experts familiar with current laws and updates.
Currently, at Ceca Magán Abogados, we continue to offer specialized advice and manage both initial residence permits by investment and their renewals. Despite ongoing changes, we remain committed to providing tailored legal support, ensuring that the process is efficient and aligned with your objectives.
If you are considering any of the eligible investments to benefit from the Golden Visa, do not hesitate to contact us. We are available to analyze your specific needs and circumstances in detail and provide you with the most suitable guidance for obtaining the appropriate permit.
Manager in the Inmigation and International Mobility department
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