Congress Approves Golden Visa Cancellation

In a significant legislative move, the Spanish Congress has passed a bill signaling the end of the Golden Visa scheme, a residency program that has enabled non-EU nationals to gain Spanish residency by investing significantly in the country. This change is set to take effect in January 2025 but awaits further processing through the Senate for potential amendments before receiving final Congressional approval.

Initially introduced as a pathway for substantial economic investment, the Golden Visa allows non-EU individuals to obtain residency by investing in properties valued at €500,000 or more, purchasing €1 million in Spanish company shares, investing €2 million in government bonds, or depositing €1 million in Spanish banks. This policy change was first hinted at by Prime Minister Pedro Sánchez in April, with the government planning to phase out all such investment avenues.

The proposal to scrap the visa was integrated into the broader Law for the Efficiency of Justice to streamline its passage. This decision comes amidst critiques that the scheme exacerbates housing shortages and inflation, particularly impacting the availability of affordable housing for Spanish citizens.

Critics, including the government’s coalition partner Sumar and its spokesperson Íñigo Errejón, argue that the visas contribute to property inflation and should be eliminated promptly. The recent inclusion of this bill under measures to enhance the efficacy of the justice system saw approval in a session notably absent of opposition party PP members, who were responding to recent national emergencies.

Since its inception, the Golden Visa has been issued to approximately 11,000 to 15,000 investors, according to various sources. While the upcoming cancellation is viewed by some as a mere political gesture in response to the growing discontent over tourism-related gentrification and soaring rental and property prices, experts predict that its impact on Spain’s residential market will be minimal.

At SGM Abogados in Benijofar, we are closely monitoring these developments to provide our clients with the most current and relevant legal advice regarding real estate investment in Spain. Stay tuned to our blog for further updates as the legislative process unfolds.