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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

Spain’s soon-to-end golden visa: Can I still apply and what if I have it already?

Last April, Spain's government said it intends to axe its property-based golden visa scheme, but is it too late still apply, how long does it take and what happens if you have the visa already? The Local spoke to an immigration lawyer to find out.

Published: 17 May 2024 12:25 CEST
Spain's soon-to-end golden visa: Can I still apply and what if I have it already?

The golden visa programme, also known as the visado de residencia para inversores in Spanish, grants non-EU nationals residency in Spain when they buy a property in Spain worth €500,000. 

It can also be obtained by investing €1 million in shares in Spanish companies, or €2 million in government bonds, or having transferred €1 million to a Spanish bank account. 

In early April, Prime Minister Pedro Sánchez announced he was axing the property-based golden visa, although there’s no new law in place yet.

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

More recently the government’s junior coalition party Sumar had said that they have now filed an official bill in the hope they can scrap it as soon as possible.

Sumar spokesperson Íñigo Errejón told journalists that the visas are a privilege that must be scrapped “immediately” because they have an inflationary effect on the housing market.

All of this means that those still interested in still getting the visa are confused. They don’t know when the scheme will end, if they still have time to send in applications and what will happen to those who are already in the process of applying.

In order to help answer some of these pressing questions, The Local Spain contacted María Luisa De Castro from CostaLuz Lawyers in to find out more. 

Q: When will the Golden Visa scheme officially end?

A: “The exact date for the official end of the Golden Visa scheme has not been fully detailed yet. Initially, changes would be implemented in the near future, potentially within the next few months. Some optimists believe it might be a bluff by the government and that it may not be implemented after all.”

READ MORE: When will Spain’s golden visa scheme officially end?

Q: Has the process of applying changed?

A: “As of now, the process remains unchanged, so it’s exactly the same as before.”

Q: Can people still apply for now?

A: “Applications are still being accepted. However, given the recent announcement, it is advisable for prospective applicants to act swiftly.”

Q: What will happen if I’m in the middle of the application process?

A: “For those currently in the middle of the application process, their applications will still be processed under the existing rules. Once the new regulations come into effect, it will very likely come with some transitional provisions to handle ongoing applications.”

Q: What about those who want to invest instead of buy a property?

A: “The visa remains available for other investment options such as investments in companies, public debt, etc.”

Q: What if I already have the golden visa through property investment, will I be able to renew it in the future?

A: “Our opinion (and that is what we will defend) is that renewal rights are acquired when the visa is granted and therefore cannot be subsequently reduced, as this would constitute a retroactive limitation of individual rights. The Spanish Constitution prohibits retroactive application of laws that are not favourable or that restrict individual rights once they have been acquired.”

Q: How quickly can I get the golden visa?

A: This depends on where you apply from. According to the CostaLuz Lawyers, if you’re applying outside the country “You should apply at least 90 days before you plan to travel to Spain”. If you’re inside Spain, you can apply through the Unidad de Grandes Empresas. This could take anywhere between 20 and 60 days.

CostaLuz Lawyers argue that it’s not necessary to wait until the property purchase has gone through, that you can apply with your initial contract or a statement from your bank in Spain, certifying that you have deposited at least €500,000.

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