What does the Golden Visa End Mean to YOU?

What are the Implications of Spain's Decision to Terminate the Golden Visa Program for Foreigners?

In a significant move announced on April 9th, Spanish Prime Minister Pedro Sánchez declared the intention to abolish the golden visa scheme, a pathway that allowed non-EU nationals to obtain residency in Spain upon purchasing real estate valued at €500,000. This decision, motivated by concerns about the impact of golden visas on Spain’s property market, aligns with the government’s commitment to prioritize housing as a fundamental right rather than a speculative commodity.

With the elimination of the golden visa, foreigners seeking to relocate to Spain will lose access to a privileged residency option, previously available to a fortunate few. Moreover, the removal of this scheme signifies the end of a visa avenue that didn’t mandate holders to become tax residents or physically reside in Spain, thus affecting the residency rights of non-resident property owners.

Furthermore, alternative routes to obtaining Spanish residency through investment, such as investing in shares, government bonds, or transferring funds to a Spanish bank account, will also be discontinued. While these fast-track options were primarily accessible to affluent individuals, the broader foreign population residing in Spain will not be directly impacted by the removal of the golden visa.

As for current holders of the golden visa, the government’s forthcoming plans regarding their status remain uncertain. While it’s plausible that they may be offered alternative pathways to Spanish residency, such as the non-lucrative visa or the newer digital nomad visa, these alternatives come with their own set of limitations, particularly regarding employment opportunities.

The decision to abolish the golden visa reflects Spain’s efforts to address concerns surrounding the influx of foreigners and its implications on the housing crisis. The surge in property purchases by non-residents, coupled with the proliferation of short-term holiday rentals, has exacerbated rent prices and reduced housing availability for locals, prompting protests in various regions. However, it’s important to note that the golden visa program only accounted for a small fraction of property sales to non-residents, indicating that its removal alone may not significantly alleviate the housing affordability issue.

While the government asserts that it has no intentions to restrict foreigners from purchasing homes in Spain, the public discourse surrounding this issue may intensify, especially if measures aimed at curbing foreign ownership fail to address the concerns of local residents struggling with housing affordability.