Spain on the verge of canceling the "Golden Visa": what does it mean for Investors?

Spain, known for its attractive real estate and mild climate, is preparing for significant changes in immigration policy.

The ruling party has proposed canceling the "golden visa" - a residence permit for investment.

This move could significantly impact Spain's investment climate and raise many questions for potential investors.

What is the "Golden Visa"?

The "golden visa" is a special program allowing foreigners to obtain Spanish residency in exchange for investments in the economy. The most popular option was purchasing real estate, but the program also included other options, such as investments in government bonds or job creation.

The Spanish government justifies its decision by citing rising property prices, which they believe are driven by foreign investments.

Authorities argue that the "golden visa" creates unhealthy competition in the real estate market, making housing unaffordable for Spaniards.

What Does This Mean for Investors? If the proposal is approved by Congress, foreigners wishing to obtain Spanish residency through investment will lose this opportunity.

What Changes Have Already Occurred? In April 2024, Spanish Prime Minister Pedro Sánchez announced his intention to close the "golden visa" program. The Council of Ministers supported this decision, but specific measures and timelines were not disclosed.

Amendments to the laws regarding the cancellation of the "golden visa" will be introduced by September 4, 2024.

Congress will review them no earlier than September 9, 2024.

What Should Investors Wishing to Obtain Spanish Residency Do? If you plan to obtain Spanish residency through real estate investment, there is still time. The "golden visa" program is still active but is likely to end soon.

Experts at Mercury Group recommend seeking individual consultation to get the most current information on the situation and learn about other residency options in Spain.

The cancellation of the "golden visa" is a significant change that could affect many investors. It is important to stay informed about developments and consult specialists in a timely manner to make the right decision.