Spain’s Golden Visa program is a residency program that allows non-European Union citizens to obtain a residence permit in Spain in exchange for making an investment in the country. By investing a certain amount of money in real estate, business projects, or public debt, iSpainndividuals can qualify for the Golden Visa and gain the right to live and work in Spain. The program was introduced in 2013 to attract foreign investors and boost the Spanish economy.
WHAT INVESTMENT IS NEEDED FOR SPAIN’S GOLDEN VISA?
The investment threshold for the Golden Visa in Spain varies depending on the type of investment made. Here are the different options and their corresponding minimum investment amounts:
1. Real Estate: The most common option is to invest in Spanish real estate. The minimum investment threshold for this option is €500,000. Consult with us to find available opportunities on the market.
2. Business Projects: Investing in business projects, such as launching a new company or investing in an existing Spanish business, also qualifies for the Golden Visa. The minimum investment threshold for this option is €1 million.
It’s important to note that these amounts are subject to change, so it is advisable to consult with our lawyers or official sources to get the most up-to-date information on the investment requirements for the Golden Visa in Spain.
WHAT RIGHTS DO I GET WITH THE GOLDEN VISA?
With the Golden Visa, individuals gain several rights and benefits, including:
1. Residency rights: Golden Visa holders have the right to live and work in Spain, as well as travel within the Schengen Area without the need for additional visas.
2. Family reunification: The Golden Visa also extends to immediate family members, such as the spouse and dependent children under 18 years old, allowing them to reside and work in Spain as well.
3. Flexibility: Unlike other residency permits, the Golden Visa does not require individuals to reside in Spain for a specified period. This means that individuals can maintain their residence in another country while enjoying the benefits of the Spanish residency.
4. Access to healthcare and education: Golden Visa holders have access to Spain’s public healthcare system and can enroll their children in Spanish schools or universities.
5. Business opportunities: The Golden Visa allows individuals to establish or invest in businesses in Spain, creating opportunities for economic growth and integration into the local business community.
It’s important to note that while the Golden Visa offers several advantages, it does not provide access to certain social benefits or the right to vote, as those are typically reserved for Spanish citizens.
WHAT CHANGES IS THE SPANISH GOVERNMENT MAKING?
The Spanish government has initiated the procedure to abolish the Golden Visa programme for foreign property investors which, under this programme, grants a three-year renewable residence permit.
During a meeting of the Council of Ministers on 9 April 2024, ministers reached a consensus to end the practice of granting visas in exchange for the purchase of properties valued at 500,000 euros or more.
The golden visa programme was created in 2013 during the government of Mariano Rajoy, who then led the conservative government.
It was seen as a means of attracting crucial foreign investment following the impact of the eurozone crisis, which hit Spain’s real estate sector hard.
Last year, the government considered doubling to €1 million the minimum amount of investment required instead of abolishing the Golden Visa altogether.
The significant recent increase has triggered the Government’s alarm and led it to put an end to the golden visa scheme altogether.
Pedro Sánchez stated that his government’s aim in eliminating the programme was to ensure that housing is recognised as a fundamental right, and not simply a matter of speculative commercial activity.
The end of Spain’s Golden Visa scheme has been met with a wave of criticism, particularly in high-value areas. The main argument is that the measure won’t really affect low and middle-class access to housing.
As the investment-for-residency plans face increased scrutiny and are modified or cut altogether as in Portugal and Greece, buyers are expected to rush to buy in Spain before the door slams shut permanently.
As there is no final date established for the abolshment of the Golden Visa scheme, we recommend clients who are non-EU Citizens to seriously consider purchasing now to gain access to the full visa program before it is too late.
WHAT ALTERNATIVES ARE THERE TO SPAIN’S GOLDEN VISA PROGRAM?
Spain introduced its digital nomad visa program to attract remote workers, freelancers, and entrepreneurs who can work from anywhere. Here’s an overview:
1. Eligibility: Applicants must have a steady income from remote work or freelance activities. They should not be employed by Spanish companies or provide services to Spanish clients.
2. Income Requirement: Applicants need to demonstrate a stable income, typically through bank statements or contracts, to ensure they can support themselves while living in Spain. The exact amount may vary, but it’s usually sufficient to cover living expenses without relying on Spanish social assistance.
3. Application Process: Prospective digital nomads apply for the visa through the Spanish consulate or embassy in their home country or country of legal residence. They’ll need to provide various documents, including proof of income, health insurance, and a clean criminal record.
4. Duration: The visa typically allows for stays of up to one year, although it might be renewable for longer periods, depending on the individual’s circumstances and Spain’s immigration policies.
5. Benefits: Digital nomad visa holders can live and work in Spain legally. They can access essential services like healthcare and enroll their children in local schools if needed. Additionally, they get to experience Spain’s rich culture, vibrant cities, and beautiful landscapes.
6. Tax Implications: While living in Spain under this visa, individuals are generally not taxed on income earned outside of Spain. However, they might have tax obligations in their home countries, so it’s essential to understand tax regulations and consult with a tax advisor.
7. Residency: The digital nomad visa does not lead to permanent residency or citizenship in Spain. It’s primarily for temporary stays, allowing individuals to enjoy the lifestyle and benefits of living in Spain while working remotely.
Overall, Spain’s digital nomad visa program aims to attract location-independent professionals, contributing to the country’s economy and cultural diversity while offering them an enriching living experience.
Conclusion
In conclusion, Spain’s Golden Visa program, initiated in 2013 to stimulate foreign investment, is undergoing significant changes. The recent decision by the Spanish government to abolish the program reflects a shift in policy priorities towards ensuring housing as a fundamental right rather than a speculative venture. While the move has been met with criticism, particularly in affluent regions, it underscores a broader trend of increased scrutiny on investment-for-residency schemes across Europe. Get in contact with us today to see how you can benefit from Spain’s Golden Visa Program before it is too late.
For non-EU citizens seeking alternative pathways to residency in Spain, the digital nomad visa program presents an attractive option. Designed to accommodate remote workers, freelancers, and entrepreneurs, this initiative aligns with contemporary trends in remote work and offers a flexible yet regulated pathway to living and working in Spain. While not a substitute for the Golden Visa’s benefits, the digital nomad visa program provides an avenue for individuals to experience Spain’s culture and lifestyle while contributing to its economy.
As Spain navigates these changes in its immigration policies, prospective investors and remote workers should stay informed about evolving regulations and consider their options carefully. Whether pursuing residency through traditional investment routes or embracing the digital nomad lifestyle, Spain remains a desirable destination for individuals seeking new opportunities and experiences.
