Spain is set to abolish its “golden visa” program, which has allowed non-EU citizens to obtain residency by investing in Spanish real estate. This change is scheduled to take effect on 3rd April, 2025.
Overview of the Golden Visa Program
Introduced in 2013, Spain’s golden visa scheme granted residency to foreign investors who purchased property worth at least €500,000. The initiative aimed to attract foreign capital in the aftermath of the eurozone crisis, which severely impacted Spain’s property sector. By November 2022, nearly 5,000 permits had been issued under this program, with Chinese and Russian investors being the primary beneficiaries.
Reasons for Abolishment
The Spanish government has decided to end the golden visa program to address escalating housing prices and limited availability, especially in major cities like Madrid and Barcelona. Prime Minister Pedro Sánchez emphasized the need to ensure that housing remains a right rather than a speculative business. He highlighted that the majority of these visas were linked to property investments in areas facing significant housing pressures, making it challenging for local residents to find affordable housing.
Impact on UK Citizens
For UK nationals, the termination of the golden visa program means that purchasing property in Spain will no longer provide a direct pathway to residency. However, alternative visa options remain available:
- Non-Lucrative Visa: This visa is suitable for individuals who can demonstrate sufficient financial means to support themselves without working in Spain. Applicants must show a stable income and have private health insurance. This option is ideal for retirees or those with independent financial means.
- Digital Nomad Visa: Introduced to attract remote workers, this visa allows individuals employed outside Spain to reside in the country while continuing their work remotely. Specific requirements regarding income and employment status apply.
- Entrepreneur Visa: For those looking to start a business in Spain, this visa requires presenting a viable business plan that contributes to the Spanish economy. Applicants must demonstrate the potential for job creation and economic impact.
Transitional Provisions
Current holders of the golden visa will retain their residency rights and can continue to renew their permits under the existing conditions. Applications submitted before 3rd April, 2025, will be processed under the regulations in effect at the time of submission
Conclusion
While the discontinuation of Spain’s golden visa program removes one avenue for UK citizens seeking residency through property investment, other pathways remain accessible. Prospective applicants should assess these alternatives in line with their personal circumstances and long-term objectives. Consulting with immigration experts or legal advisors is advisable to navigate the evolving residency landscape in Spain.
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