Spain’s Golden Visa Scheme In Danger Of Being Scrapped
Spain News
Published: 17 February 2023 15:16 CET
Approximately one hundred thousand expat property investors could soon be affected by a new bill to scrap Spain’s popular ‘Golden’ or ‘Investment Visa’ scheme.
The Residence by Investment Scheme was first introduced back in 2013 and allows foreigners to acquire a Spanish residence permit, by buying property in the country, for a minimum of 500,000 euros.
The scheme's speedy application process is one of its major benefits for those seeking permanent residency in Spain. Typically, a response can be received within just 10 days of submitting the application, thanks to the fast-track procedure.
Applicants must be over the age of 18, be non-EU residents, and not live in a country where EU laws apply.
For many, the Golden Visa is the easiest and fastest way for those from outside of the EU to acquire Spanish residency.
It is also the only visa that allows you to live and work in Spain for an initial period of two years.
Some Spanish politicians believe that this type of investment has driven up house prices, meaning that locals are finding it hard to purchase their own homes. And EU officials have pointed to the potential risk of tax evasion and money laundering by international buyers.
The new bill that has been submitted to congress will see Spain follow Portugal, which has already decided to scrap its own Golden Visa. On Thursday, February 16, Portuguese Prime Minister Antonio Costa confirmed that Portugal will “eliminate the issuance of new golden visas.”
The Spanish bill will also see the Golden Visa Scheme limited to foreign buyers who present a business proposition that will create jobs or innovation that will help Spain’s economy grow.
This is in contrast to those who simply purchase a property with no job opportunities and no benefit to the economy, only increasing inflation.
As well as investing in real estate, investors have several other options to invest in Spain in order to be eligible for the Golden Visa program. The list includes public debt at a minimum of €2 million, shares at a minimum of €1 million, and investment funds, investment funds of close-end type, or venture capital funds set up in Spain at a minimum of €1 million.
Bank deposits are also an option at a minimum of €1 million. Additionally, there is no minimum investment requirement for business projects, but they must meet certain criteria. These criteria include being of general interest, creation of jobs, the social and economic impact on the geographical area, and a significant contribution to scientific and/or technological innovation.
Speaking in an interview with Radio Cadena SER, Inigo Errejon, the leader of the Mas Pais said that “it is not about the origin of the people, but the fact that the EU has already warned us that this is a shady business”.
Fortunately, there are alternative visa schemes available for non-EU nationals to gain residency in Spain. These include the Non-Lucrative Visa, Work Visa, Student Visas, Internship Visas, Family Reunification Visas and the new Digital Nomad Visa among others.
Sources
https://fortune.com/2023/02/16/portugal-ending-golden-visa-program-politicians-blame-housing-prices/
https://www.theolivepress.es/spain-news/2023/02/16/expat-property-investors-sweating-over-threat-to-spains-colonial-golden-visa-scheme/
