Spain to end the Golden Visa. Is it still worth applying?
Spain has been in the European Union since 1985 and in the Schengen area since 1995. The country’s high standards of living and developing economy are the factors that make it an attractive option for relocation. Both families and businesses nowadays treat Spain as an important candidate for future investments.
Especially for non-EU nationals who want to pursue their career or life goals in Europe, Spain golden visa programme is a great option. It allows one to reside, study and work in Spain. In addition, it may also lead to permanent residency and eventually citizenship.
Spain launched its residence by investment scheme in 2013. It has allowed affluent people from outside the EU to obtain a residency permit by investing more than €500,000 in real estate or certain types of business.
There are several investment options in Spain golden visa programme. One may choose to invest either 500,000 Euros in property, €2 million in Spanish government bonds, or €1,000,000 on shares in Spanish companies.
However, on Monday the 8th of April, the country’s government said it plans to scrap the real estate route which accounts for 94% of applications to reduce pressure on the housing market. The legal process for ending the visa is still underway.
Prime Minister Pedro Sanchez explained that his government intends to guarantee that housing is a right and not merely the subject to business speculation. Over 90% of properties bought to obtain a golden visa are in Barcelona, Madrid, Malaga, Alicante, Balearic Islands and Valencia where the housing market is under pressure and priced too high.
Spain has also been under pressure from the European Commission, which wants to clamp down on such residence schemes because of security concerns.
So far, all we have is the announcement of the government’s intention to close the scheme. The law will still need to be amended, agreed on and ratified, also a time limit also established. Currently the golden visa route remains open, but bear in mind that buying property, applying and getting it approved can be a lengthy process.
While this sounds like bad news for non-EU nationals, other visa options are available if you intend to retire in Spain and live there most of the year. In fact, the non-lucrative visa approach is another option.
In collaboration with an experienced legal team SpainHomes offers our clients a tailor made and transparent journey in a quest for their Spanish Golden Visa.
