The President of the Government, Pedro Sánchez, announced this Monday that the Council of Ministers will study on Tuesday a report to modify the law, approved by the PP in 2013, which allows you to obtain a residence visa if you invest in housing in Spain. With this, the Executive intends to initiate the procedure to eliminate the granting of the so-called ‘golden visa’ in order for housing “to be a right and not a mere speculative business.” Chinese and Russian investors, the biggest beneficiaries of the golden visa.
To apply for a visa or residence authorization, non-EU foreigners have different alternatives if they make a significant capital investment, either in the acquisition of real estate in Spain, in financial assets or in a business project. If they choose to purchase real estate, they must make an investment worth more than 500,000 euros for each applicant.
In the case of the acquisition of real estate, the applicant must prove that they have an investment in real estate of half a million euros free of charges or encumbrances. The part of the investment that exceeds the required amount may be subject to a charge or encumbrance.
They can also apply for a visa or residence authorization if they invest in financial assets by making an initial investment for a value equal to or greater than 2 million euros in Spanish public debt securities or one million euros in shares or social participations of Spanish companies with a real business activity.
Also if they invest one million euros in investment funds or one million euros in bank deposits in Spanish financial institutions or if they develop a business project in Spain of general interest.
The permits to which these operations give access are the visa or residence authorization. In the case of the visa, when the applicant is outside of Spain, he will obtain permission to, if he wishes, reside and work throughout the national territory. The duration of the permit is one year, except for the acquisition of real estate through a deposit contract, which is six months.
After the year, you must apply for a residence permit. This authorization is intended for the applicant who is legally in Spain, and who will obtain a 3-year permit to, if desired, reside and work throughout the national territory.
The appetite of Latin American fortunes for Spain, and mainly Madrid, has not stopped growing in recent years, turning the capital into the “European Miami.” After the Venezuelans and Mexicans, who have been very active in recent years, now it is the turn of Argentines, Chileans or Colombians.
But not only Latin Americans have put Spain at the focus of their real estate investments, but also Americans, who have been very active in recent months. The Chinese and Russians have been some of the nationalities that have benefited the most from this golden visa.
The Minister of Inclusion, Social Security and Migration, José Luis Escrivá, warned in 2023 that it was necessary to give a “turn” to the ‘golden visa’, an issue that he acknowledged had been studied for some time.
Sumar, a PSOE partner in the Government, had already asked to eliminate the golden visa, in line with the measure adopted by the Portuguese Government. Más País Verdes Equo had also advocated for this to avoid speculation and the escalation of housing prices in many towns and neighborhoods.
Barcelona City Council had demanded this measure, which in other countries such as Greece has seen conditions tightened in an attempt to alleviate the real estate crisis suffered by the country. Housing has become one of the Government’s priorities, with the focus on improving access to it, especially for the youngest.
