·         14-11-24
After years of debate, the Congress of Deputies has given the green light to the bill that eliminates the famous ‘Golden Visa’, those visas that allowed non-European citizens to obtain residency in Spain in exchange for million-dollar investments. This change marks the end of a policy that has been in force since 2013 and that has attracted thousands of foreign investors. Now, the text goes to the Senate to complete its processing.
What were the ‘Golden Visa’?
Since its approval by the Government of Mariano Rajoy in 2013, the ‘Golden Visa’ offered a fast track for non-EU citizens to obtain residency in Spain, provided they met certain economic requirements. This included:
• Real estate investment: Buying properties with a minimum value of 500,000 euros.
• Capital investments: Placing at least one million euros in shares, funds or deposits, or two million in public debt.
• Business projects: Initiatives considered to be of general interest in the country.
The initial visa was valid for two years, but could be renewed for five-year periods.
Why are they being eliminated?
The decision to end the ‘Golden Visa’ is not new. Since the last legislature, Pedro Sánchez’s government had shown interest in reviewing and even eliminating this program. In April of this year, the president himself formally announced his intention to eliminate these permits.
The process recently culminated with an amendment included in a bill on efficiency in justice. This movement, although discreet, was enough to dismantle the program, taking advantage of a parliamentary situation where the PP opposition did not participate due to the effects of the tragedy caused by the DANA.
The impact of the ‘Golden Visa’ in figures
Over the past eight years, the ‘Golden Visa’ has had a significant impact on the Spanish market:
• More than 10,000 visas issued: Between 2016 and 2024, 10,528 permits were granted.
• Million-dollar investment: These transactions represented an injection of more than 10 billion euros into the Spanish economy, with an average expenditure per visa close to one million euros.
• Recent growth: In 2022, record figures were reached, with 2,017 visas authorised and an investment that almost doubled that of 2021.
Although the programme has generated income, it has also been the subject of criticism for its impact on access to housing and its perception as a “shortcut” for certain investors with no real connection to the country.
What does this mean for the future?
The elimination of the ‘Golden Visa’ represents a significant change in the policy of attracting foreign capital in Spain. This model, which has been successful in countries such as Portugal and Greece, is now out of the question in the Spanish context. The Government is seeking to promote a more sustainable and equitable approach to the real estate market, prioritising the needs of local citizens.
It remains to be seen whether this decision will have repercussions on Spain’s attractiveness as a destination for foreign investment, especially in a context where global competition to attract capital is increasingly fierce.
With this change, Spain is ending an era of visas that, although controversial, left their mark on the economy and the real estate sector.