Spanish Cabinet Debates Future of the Golden Visa Program

Brittany Collins

In April 2024, Spain’s cabinet approved possibly ending the Golden Visa Program. However, it is unknown when the changes will take effect and what options will be cancelled.

According to investment programs experts, the cancellation process will take at least six months. Investors continue applying for a residence permit in Spain under unchanged conditions.

Spanish Cabinet Debates Future of the Golden Visa Program

Spain Golden Visa was introduced in 2013 after a housing market crash and the euro currency crisis to revitalise the property sector. The visa granted residency rights to wealthy foreigners who invested in real estate.

94% of approved applications are for the purchase of real estate, which has led to a crisis in the Spanish real estate market associated with rising prices and interest rates on mortgages.

What the Spanish cabinet’s report means for investors

The Golden Visa program is still operational, and applications are being accepted. No legislative actions have been initiated yet. The Spanish cabinet is setting up a study to assess the effects of the Golden Visa route on the accessibility of the real estate market within Spain.

The findings from this study will guide the government’s method to potentially end the Real Estate Golden Visa, necessitating amendments to the Entrepreneurs Act that governs this permit.

There are no intentions to discontinue Spain’s other Golden Visa options, which include:

investments in government bonds,
bank deposits,
investment funds,
shares in Spanish companies.

Investors interested in Spain’s Golden Visa Program’s real estate pathway should consider expediting their applications or directing their investments into alternative channels.

How to apply under current Spain Golden Visa conditions

Six investment options are available for the investor to choose from:

Purchase of real estate — 500,000 €.
Opening a deposit in a Spanish bank — €1,000,000.
Purchase of shares of Spanish companies — €1,000,000.
Purchase of shares of investment or venture funds — €1,000,000.
Purchase of government bonds — €2,000,000.
Business investments — there is no minimum investment amount.

To return on investment, you need to live in Spain for five years and obtain permanent residence status. You can apply for citizenship after another five years of living in the country.

Requirements for participants. A golden visa can be applied for by a foreigner over 18 with legal income outside Spain and without a criminal record.

With the investor, a residence permit can receive:

spouse in a registered marriage or partnership, including same-sex couples;
children under 18;
children over 18, if they are not married, without children and are financially dependent on the investor;
Parents, if they are financially dependent on any of the spouses.

The period for issuing a residence permit is 6 months or more. The first residence permit card is issued for 3 years. You do not need to live in Spain to maintain your status. After the expiration of the residence permit, the investor must come to Spain to renew the status for another 5 years.

The regulations do not require Spain Golden Visa holders to relocate to maintain their status. The primary condition is keeping the investment for at least five years.