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Spain says alarm was raised over golden visas when ‘numbers doubled’

Spain’s Housing Minister on Tuesday shed some light on how a spike in golden visas issued to wealthy foreigners buying Spanish properties over the past two years spurred her government to cancel the scheme.

Published: 9 April 2024 15:04 CEST
golden visa spain
Spanish Housing Minister Isabel Rodríguez talks about the cancellation of the golden visa scheme. Photo: AFP/LA MONCLOA/BORJA PUIG DE LA BELLACASA"

Following a Spanish cabinet meeting on Tuesday April 9th in which the cancellation of the golden visa was at the centre of discussions, Housing Minister Isabel Rodríguez explained why her government had decided to scrap the ‘€500,000 property for residency’ scheme. 

The first point she clarified is how many golden visas have actually been issued since the launch in 2013, as there has been conflicting data regarding this since Pedro Sánchez made the initial announcement that he was scrapping the scheme on Monday.

Golden visas issued through the purchase of Spanish properties worth more than half a million euros total 14,576, according to the minister.

“It was in 2022 when the alarm was raised as golden visas doubled,” Rodríguez told journalists.

“In 2016, 471 golden visas linked to Spanish real estate were issued. In 2017, 946. In 2018, 988. In 2019, 861. In 2020, 632. In 2021, 997. In 2022, 2,017. And in 2023, 3,272.

“This is why after analysing the data we are firmly taking steps to find solutions and end price speculation, which has increased exponentially since 2022.”

It’s the first time the Spanish government had disclosed the golden visa data for 2023.

READ ALSO: When and why is Spain axing the golden visa?

Critics have been quick to point out that golden visa holders represent a far smaller share of the foreign buyers market than other foreign second homeowners without a visa (0.7 percent compared to non-resident foreign buyers who bought a Spanish home in 2023).

But according to governmental transparency data analysed by Spanish daily El Diario, these golden visa holders have pumped €5 billion into the Spanish property market over the last five years. 

Last November, the newly pointed Housing Minister vowed to protect second home owners, although she did not specifically mention foreign owners. 

What remains to be seen as well is if the Spanish government will also look to scrap the other means of obtaining a golden visa: investing €1 million in shares in Spanish companies, or €2 million in government bonds, or transferring €1 million to a Spanish bank account

During the press conference Rodríguez did stress that she “encourages people to still invest in Spain, Spain is an attractive country to invest in, but if it’s property we need them to do so by contributing to the development of property that’s affordable and that can guarantee the right to housing”.

Furthermore, a report in Spanish newspaper ABC on Tuesday which cites government sources states that residency through financial investment will be maintained.

In order to scrap the golden visa through property scheme, the ruling Socialists will need to have the amendment approved in Parliament next, after the visa cancellation was initially ratified in the Spanish Cabinet on Tuesday by the country’s ministers.

According to Spanish daily El Periódico de España, the intention of Spain’s Housing Minister is to cancel the golden visa scheme as quickly as possible and to fast-track this process by attaching the legal amendment to another law, the upcoming modification of the Spanish Land Law (Ley de Suelo) which has already overcome some legal hurdles.

READ ALSO: What the end of Spain’s golden visa means for foreigners

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VISAS

EXPLAINED: When you can exchange visas in Spain

There are several different types of visas and residency permits you can get to be able to live and work in Spain, but what happens when your situation changes and you want to exchange your visa for a different one?

Published: 30 April 2024 14:20 CEST
EXPLAINED: When you can exchange visas in Spain

There are many different reasons you may want to exchange the type of visa or residency permit you have. Perhaps you’re on a student visa and have completed your studies, but still want to be able to stay in Spain. Or maybe you’ve been on a one-year non-lucrative visa, but can no longer afford not to work and want to exchange it for one where you’re allowed to work. 

Read on to find out which visas are possible to exchange and which are not. 

Student Visa to Digital Nomad Visa 

The simple answer is yes, it is possible to exchange your student visa for the new Digital Nomad Visa (DNV) that first became available last year. This will, however, depend on your individual circumstances and what job you plan on doing.

Firstly, in order to apply for DNV you must either have a degree from the field you want to work remotely in or have three years’ work experience in that industry. If you’ve just finished your studies this could be possible, but if you were studying something different, it could prove difficult.

If you are an older student, you could definitely have three years’ work experience in the industry you want to work in or you may have gained the experience working part-time in Spain while on your student visa.

Secondly, you must make sure you have worked for the company that hired you for a remote role for a minimum of three months before you apply for the DNV. The main caveat is that the company has to be registered outside of Spain as you are not eligible for the DNV if more than 20 percent of your income comes from inside Spain. This means that you will have to secure a remote job in another country while still on your student visa, making sure that you stick to the 30 hours a week you’re allowed to work.

Non-Lucrative Visa to Work Permit or Self-Employed

Being in Spain on the Non-Lucrative Visa or NLV can prove to be expensive because you’re not allowed to work, but have to prove you have a significant amount of savings or passive income. If you want to stay in Spain, beyond the initial year, you may be considering a different residency permit. Luckily, you can exchange it for a work permit or self-employed permit in a process called residence modification.

During your last few months on the non-lucrative visa, you are able to apply for jobs in Spain, which may give you the possibility of being granted a work permit. There are many prerequisites, including having lived in Spain for a year and being offered a pre-employment contract.

You could also decide to become self-employed at set up your own business. In order to do this you will need to meet the requirements that current legislation requires for opening and operating your chosen business. You will also need to sign up to the autónomo system, pay your own social security fees and submit your taxes five times a year.

READ ALSO: Should I change my non-lucrative visa for another residency permit in Spain?

Student Visa to Work Permit or Self-Employed

If you’re living in Spain on a student visa, then it’s relatively straightforward to exchange it for a work permit or become self-employed, if you want to be able to stay longer. The main requirement is that you have to have lived in Spain for three consecutive years, before you exchange it. This means, it’s really only possible for those who are doing a long-term course, such as a degree at a Spanish university. If you’re simply here for a year doing a language course, then it won’t be possible.

If you have been here for three years on a student visa, you have two options – the first is to find a job and become an employee by getting a work permit and the second is to become self-employed. If you opt for the first, the easiest way is to get a job offer and apply for the permit that way. Because you’ve already had a student visa and been here three years, it will be easier for companies to hire you as they won’t have to prove that there isn’t anyone from Spain or the EU that can do it first or that they have a shortage of professionals who can carry it out.

If you want to exchange it for a self-employment permit, you will have to present a business plan in order to get approval and prove you have the correct qualifications and experience to carry it out. If approved, then you will typically sign up to the autónomo system.

Student Visa to Entrepreneur Visa

Student visas are the easiest visas to modify in Spain, meaning you have many different options to exchange them if you want to stay longer. The Entrepreneur Visa – Visado de Emprendedor is another option that will allow you to stay for a period of three years (with the option of exchanging or extending). It is, however, slightly more complicated to exchange to than simply getting a work permit or becoming self-employed.

The Entrepreneur Visa is especially for those who want to set up a business considered to be innovative with a special economic interest for Spain. Unlike becoming just an autónomo, you must agree to be able to create employment opportunities for locals in the future. You could also in theory exchange your NLV for an entrepreneur visa too, provided you can prove that you haven’t done any work while you’ve been living in Spain for the year on your NLV.

Non-Lucrative Visa to Digital Nomad Visa

Unfortunately, this exchange is not possible. The main issue is that you’re not allowed to work while on a NLV and the requisites of the DNV are that you must have worked for the company that hired you for a remote role (or your clients if you’re self-employed) for a minimum of three months before you apply.

If this is the case then you’ll be admitting that you were working while on your NLV, which could get you into trouble. This means will have violated the terms of your visa and will be highly unlikely to be granted another one. You may also face penalties and fines, depending on your circumstances.

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