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The possible extinction of the Golden Visa

The Golden Visa allows residence permits to be obtained through the purchase of homes worth more than half a million euros. Golden visas, officially known as investment residence permits, were granted in exchange for the purchase of properties worth 500,000 euros or more. Holders obtain the right to live in Spain for five years, after which they can apply for permanent residence, although the minimum required stay in the country is only a few days per year. This residence permit for foreigners can also be obtained if investments of more than one million euros are made in deposits or Spanish shares, or more than two million euros in government bonds.

 

Portugal has become the second EU country to abolish Golden Visas for wealthy individuals setting up in the country, joining Ireland in abolishing a programme that helped attract foreign investment. The Golden Visa is currently in force in Spain, Bulgaria and Greece (Greece has recently increased the requirements to obtain it).

 

According to data from the Ministry of Inclusion, Social Security and Migration, 314 permits were granted last year for this type of investment in the Islands, 8.3% of the national total (3,783). The Balearic Islands thus joins the group of provinces with the highest number of permits, together with Barcelona, Madrid, Malaga and Alicante. Spain is also one of the most prolific EU states in granting golden visas.

 

In recent years, house prices have soared due to foreigners buying second homes or flats to rent out to tourists through platforms such as Airbnb. The proliferation of short term holiday flats and other tax incentives for foreign residents have dominated the real estate market and this means that a large part of the local population is unable to afford housing as house prices rise.

 

In general terms, the most prominent nationalities include the British (despite Brexit), Germans, Swiss, Norwegians, Italians, Belgians, French and Latin Americans (from Mexico, Colombia, Peru, Chile and Venezuela). In the case of the Balearic Islands, the most numerous applications come from the United States (with a notable increase in recent years), China and Australia, as well as the United Kingdom, in first position since Brexit. The war in Ukraine has slowed down concessions to Russian citizens, although it has not eliminated them. On the other hand, the programme allows the investor to add other permits for immediate family members with whom he or she lives, so that the figure usually doubles or triples.

 

The government has not yet decided how it will limit the Golden Visa for residential investment. It is considering two options: on the one hand, bringing investment in housing closer to the limits for other financial investments, of at least one million euros. And, on the other hand, to abolish residence permits in exchange for investment in houses. The government intends to redirect these real estate investments to others that are more productive, such as taking equity stakes in companies, among others.

 

At Illeslex Abogados we specialise in gold visas, if you are interested please do not hesitate to contact us and request an appointment, as we will be happy to advise you on anything you need.

Paula Sureda
Illeslex Abogados

 

 

For further information on the contents of this document, please contact ILLESLEX at info@illeslex.com.

 

©2023 ILLESLEX | All rights reserved. | This document is a compilation of legal information prepared by ILLESLEX. The information or comments contained herein do not constitute legal advice. The intellectual property rights of this document are owned by ILLESLEX. No part of this document may be reproduced in any medium whatsoever, nor may it be distributed, transferred or used in any other way, either in its entirety or in excerpted form, without the prior permission of ILLESLEX.

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