The Golden Visa in Spain has been a resource used for years to attract foreign investment, offering a residence permit to people from outside the European Union who make a significant investment in the country. This visa has not only served as a tool to foster economic growth in key sectors such as real estate and business, but also as a means to integrate investors and their families into the Spanish social and economic environment.
The program allows beneficiaries to reside and work in Spain, access public services and travel freely within the Schengen area. Among its main advantages, applicants can diversify their investments, enjoy legal stability and, in some cases, qualify for Spanish nationality after meeting the residency requirements.
How was the Golden Visa obtained?
To qualify for the Golden Visa, investors had to meet one of the following conditions:
- Buy real estate in Spain with a minimum value of 500,000 euros.
- Invest 2 million euros in Spanish public debt.
- Invest 1 million euros in shares of Spanish companies or bank deposits.
- Create a business project that generates employment, drives innovation or has a significant economic impact on the country.
In addition, applicants had to meet certain basic requirements, such as having a valid passport, health insurance, no criminal record, and proof of financial solvency to support themselves and their families.
The initial visa was valid for one year, after which investors could apply for a renewable residence permit, first for two years and then in five-year periods.
Reasons behind its elimination
Despite its economic benefits, the program has been the subject of controversy. The Spanish government announced in early April 2024 that it would eliminate the Golden Visa related to the purchase of real estate. This decision responds to concerns about its impact on the real estate market, especially in areas where demand far outstrips supply, driving up prices and making access to housing more difficult for local residents.
The President of the Government, Pedro Sánchez, argued that the program encouraged speculation and distanced housing from its social function, turning it into a product destined for foreign investment instead of a right accessible to the population. The elimination seeks to reorient the policy towards a more equitable approach, prioritizing Spanish families and young people.
What is the impact of this decision?
The end of the Golden Visa linked to the purchase of property not only affects foreign investors, but also sectors such as real estate, especially the luxury market, which relied heavily on this type of buyers. However, other forms of the Golden Visa, such as business investment or business start-ups, could be maintained, albeit with restrictions.
Comparison with other countries
Spain is not the only country to review such programs. In Europe, nations such as the United Kingdom, Ireland, the Netherlands and Austria have eliminated their Golden Visas due to concerns related to speculation, money laundering and lack of direct benefits to their local economies. On the other hand, countries such as Greece, Malta and Italy still maintain them, albeit with recent modifications to adapt to current social and economic demands. Outside Europe, countries such as the United States, Canada and Australia continue to offer similar programs, albeit with specific characteristics.
In conclusion, the elimination of the Golden Visa in Spain represents a significant change in the country’s migration and economic policy, marking a step towards a more focused approach to guaranteeing access to housing and combating social inequality. However, it also leaves open the possibility of developing new strategies to attract foreign investment in a more sustainable and balanced way.