Spain News | Want to become a resident in Spain? Let’s hope the Golden Visa is around for the foreseeable future

For those of you that don’t know, you can still become a resident in sunny Spain even if you are not an EU, Icelandic, Norwegian, Liechtenstein or Swiss citizen, family of such a citizen or highly skilled worker on a work visa. That’s where the Golden Visa comes into the picture. Officially known as the Spain Investor visa, this residence permit is issued to applicants that make a significant investment in Spain, for example, someone who buys a property, invests in a company, or creates employment opportunities. The investor also needs to comply with the following requirements:

• Be over the age of 18.
• Not be a citizen of the EU, Iceland, Norway, Liechtenstein, or Switzerland.
• Have valid health insurance in Spain.
• Have enough financial means to sustain themselves and any family members.
• Have no criminal record.
• Not be in Spain’s list of undesirable people.
• Not have any rejected Schengen Visas.

As regards the investment, the options are the following:

• Buy a property worth at least 500,000 euros without a mortgage.
• Buy shares in a Spanish company for at least 1,000,000 euros.
• Deposit at least 1,000,000 euros in a bank in Spain.
• Submit at least 2,000,000 euros towards Spanish public debt.
• Invest in a new business that will create employment opportunities for Spanish citizens, contribute to innovation in technology or science and make a significant socio-economic impact.

From these options, the more affordable one, and the one we are concerned with as real estate agents, is the property purchase option. Since Brexit, many British property owners have decided to sell their properties as they can no longer spend 6 months at a time in Spain. In 2021, 73% of our vendors were British; 74% in 2022; and 75% so far this year. However, many British people still want to live in by the Mediterranean Sea and are considering all the possibilities there are to extend their stay in Spain, enjoying its relaxed lifestyle and many other benefits. 35% of our buyers in 2021 and 2022 were British, and 41% so far this year are also of British nationality. Therefore, despite many of the consequences Brexit has caused, it has not and will not keep the Brits out of Spain.

Moreover, last month Portugal decided to shut down its Golden Visa program to fight the housing crisis. Housing groups claim that such a program only benefits wealthy foreign investors at the expense of local residents, as property prices and the cost-of-living increases. After a Spanish political party discovered this, they suggested to pass a law to shut down Spain’s Golden Visa scheme. The party suggested that this permit only causes speculation of property prices in Spain, driving residents away from their towns as they can no longer afford to live there.

The Spanish Government’s response to this bill was information about Golden Visas granted since the beginning of the program. Almost 5000 visas have been granted so far, 45% of which have been awarded to Chinese citizens. Russians and Ukrainians follow behind, with nearly 20% and 3% respectively. We believe this response intends to disregard housing groups’ claims about speculation of property prices and to keep attracting foreign investors to Spain.

So, despite this bill to cancel the Golden Visa program, we hope it remains as an option to become a resident for a long period of time. If you are interested in the most affordable option of all which is purchasing a property in Spain, we are here to help you. You will not regret choosing the Costa Blanca as your new home!