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This article forms part of the CostaLuz Lawyers blog and is published for general informational and educational purposes only. It was prepared with the assistance of artificial intelligence tools and, before publication, was substantively reviewed and editorially approved by Maria de Castro, a Spanish-qualified lawyer registered with the Cádiz Bar Association under number 2745, founder of CostaLuz Lawyers and the person responsible for the editorial review of the published content.
This article does not constitute legal, tax, immigration, employment, estate-planning or investment advice and does not replace an individual assessment and the professional work of the appropriate CostaLuz Lawyers specialist. No action or omission should be based solely on this information.
The Spanish Congress approved yesterday the bill that ends the ‘golden visas,’ a scheme introduced in 2013 under Mariano Rajoy’s government. These visas were granted to non-EU citizens who made investments exceeding 500,000 euros in Spanish property. However, after months of discussions and adjustments, the new Justice Efficiency Law, recently approved in the Congress Plenary, includes an amendment that eliminates this residency program.
The amendment, which was introduced discreetly into the bill, removes articles 63 to 67 of the 2013 Entrepreneurs’ Support Law, which set the conditions for obtaining the ‘golden visa.’ This change follows an announcement by Prime Minister Pedro Sánchez in April of this year about the government’s intention to end this type of visa. The law is now sent to the Senate for final approval, which will take a minimum of two months for deliberation. This means that, at least until then (around mid-January), the ‘golden visa’ will remain in effect in Spain.
What Changes Does This New Law Bring?
The reform mainly affects the visas granted to investors who purchased properties in Spain for more than 500,000 euros. However, the amendment also includes other types of investments, such as those made in Spanish public debt, shares in Spanish companies, investment funds, and bank deposits in Spanish financial institutions.
Example:
Consider an investor who purchased a property in Barcelona for 600,000 euros last year and obtained a ‘golden visa’ through the program. Now, with the new law, they wonder whether they will be able to renew their visa when it expires in a few years.
Answer:
The investor will be able to renew their visa under the same conditions that applied when they first obtained it.
Impact on the Residential Market and Investors
Since its introduction in 2016, Spain has issued around 11,000 ‘golden visas.’ Experts believe that its elimination will have a limited impact on the Spanish real estate market, as most beneficiaries of these visas have already invested in properties in highly sought-after areas. However, for those who benefited from other types of investments, such as investment funds or shares in Spanish companies, this change could have a more significant effect.
Questions and Answers
- What happens to people who already have a ‘golden visa’?
Those who obtained the ‘golden visa’ under the 2013 law will continue to enjoy their rights until the law comes into effect. They will also be able to renew their visa under the same conditions that were in place when they received it. - Can I renew my ‘golden visa’ if I got it before the new law came into effect?
Yes, individuals who obtained the ‘golden visa’ before the reform can renew it - How will this law affect real estate investment in Spain?
The impact will be limited, as most investors who used the ‘golden visa’ have already acquired properties in high-demand areas. However, the removal of the visa could reduce interest from some foreign investors in the real estate market. - What alternatives are available for investors interested in living in Spain?
Investors can apply for other types of visas, such as the entrepreneur residency visa , the work visa or the Non Lucrative Visa provided they meet the required conditions. - Is there a chance that ‘golden visas’ will be reinstated in the future?
Although the ‘golden visa’ has been eliminated, there is always the possibility that a similar program could be reintroduced in the future, depending on Spain’s economic or immigration policies.
This change in the law marks the end of an era for foreign investors seeking a quick path to residency in Spain. While some will continue to benefit from their visas until they expire, the new regulations promise to reshape the landscape of foreign investment in the country.
At CostaLuz Lawyers, we are accepting applications for the ‘golden visa’ until the end of December 2024, provided that applicants are able to gather all the necessary documentation before the deadline. Don’t miss this final opportunity to apply under the current law in Spain!
Legal Notice: The content on this page is provided for general informational and educational purposes only. It does not constitute legal advice and should not be relied upon as such. No action should be taken based solely on this content without first seeking independent professional legal counsel. Each case requires individual assessment based on its specific circumstances. CostaLuz Lawyers accepts no liability for actions taken or not taken based on this content.
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