In recent weeks, the debate surrounding Spain’s “Golden Visa” or residence for investors has gained prominence in Spain, and its elimination appears to be drawing closer. This measure is being processed through Bill 121/000018, which proposes the creation of the Independent Administrative Authority for the Defense of Financial Customers, aimed at out- of-court resolution of disputes.

Written for Expat Network by Mª Eugenia Blasco Rodellar of AGM Abogados

Furthermore, amendment no. 316, presented by the Socialist Parliamentary Group in Bill 121/000016 on measures relating to the efficiency of the Public Justice Service and collective actions for the protection of the rights and interests of consumers and users, proposes the elimination of the Golden Visa. This bill is at a much more advanced stage.

The amendment was approved on October 30th, and the project has already received the approval of the Plenary of the Justice Commission on November 4th. It is now awaiting approval in the Cortes. Once published, the new law will come into force within 20 days or 3 months; however, the current text does not specifically clarify the period of application for the provisions related to the elimination of this visa.

In any case, within an estimated period of between three and five months, all investor visas would be eliminated, as the amendment calls for the removal of Articles 63 to 67 of Law 14/2013, which has until now regulated the residency regime for foreigners making significant investments in the country. This measure, known as the “Golden Visa,” was originally designed to attract foreign investment in a period of economic crisis, incentivising the acquisition of real estate and other assets such as public debt, investment funds, or investments in Spanish companies or projects of general interest.

The elimination of this regime is based on several reasons, according to its proponents. First, the considerable increase in housing purchases by foreigners has had an impact on the real estate market, concentrated mainly in specific areas. This has contributed to rising prices and, in some cases, gentrification, making housing access more difficult for local residents.

In addition, according to the text of the amendment, it is noted that other forms of investment linked to this regime have not had a significant impact on the economy, leading to questions about its effectiveness as a tool for attracting foreign capital. This last reason has been a key factor in the elimination of all investor visas, not just those for real estate investment, as originally planned. Although it is true that the other investment channels have not been widely used, it is possible that their use could increase once they become the only option.

Spain offers other residency options for those who do not wish to reside permanently and become tax residents in the country but do not want to be restricted by the maximum tourist stay limits. These include non-profit residency or residency as a “digital nomad”, although all of these require spending more than six months in the country each year.

The amendment also references a broader trend at the European level to review or tighten investment visa programmes. Since the Russian invasion of Ukraine, several European Union (EU) countries have begun to restrict such permits due to security and transparency concerns, particularly regarding the origin of funds.

Treatment of ongoing applications:

If this amendment is approved, the new regulations will include transitional provisions to protect vested rights. Specifically:

1. Applications in process: applications submitted before the new law takes effect may proceed according to regulations in place at the time of application. It is essential to note that the investment must already be completed to initiate the process, and for real estate investments, the property must be duly registered in the Land Registry. Since the processes of purchase, sale, and registration can take up to two months, it is critical that the visa or residency process is initiated before the new regulations come into force -not solely the investment process.
2. Renewal of existing visas: visas and authorisations already issued will remain valid until their expiration date, with renewals processed according to the regulations in place at the time of the original issuance. However, it is crucial to manage these renewals carefully and seek appropriate guidance, as any issues or refusal to renew would preclude the possibility of reapplying for an investor visa or residency.

The elimination of the investment residence visa marks a significant shift in Spain’s immigration and economic policy. This measure aims to mitigate the negative impact on housing access and align with European concerns surrounding security and financial transparency. For current and prospective investors, this amendment implies a reorientation: only those already in process or holding a current authorisation will be able to benefit.

While the proposal is not yet approved, it may soon come into effect. Considering the time required to complete an investment and the potential deadlines for law’s implementation, the countdown has begun for those wishing to secure an investor residence in Spain.