Benefits of Golden Visa
Obtaining a Golden Visa requires purchasing a property in Spain worth a minimum of 500,000 euros, holding financial instruments equivalent to 1 million euros in Spanish territory, or investing at least 2 million in government debt.
Selected applicants and their families not only obtain an “accelerated” permit to reside in Spanish territory but also enjoy unrestricted travel throughout the European Union and the Schengen Area, comprising up to 26 countries.
Other benefits include access to public healthcare and education systems, as well as preferential rates at public universities.
Another way to obtain it is by establishing a business in Spain that generates employment, as the goal of this visa is to attract foreign capital.
Why does the Spanish Government want to eliminate the Golden Visa?
Rental prices continue to rise in Spain’s major cities and acquiring property with a mortgage is more challenging due to high interest rates, the government announced that it will put an end to access to Golden Visas through property purchases.
The majority of granted visas were linked to property purchases in locations such as Madrid, Barcelona, Valencia, Malaga, Alicante, and the Balearic Islands, all areas where the real estate market is under enormous pressure.
These are cities facing a highly strained housing market, where it’s nearly impossible to find decent housing for those who live and work in them and pay their taxes.
The Spanish president stated that “it is not the country model they need, because it is a model that leads to disaster and, above all, leads to a lacerating inequality due to the inaccessibility of many young people and families to purchasing home”.
How will the Golden Visa cancellation affect the real estate market?
Experts believe that it is unlikely for the measure to affect the real estate market since less than 0.1% of the 4.5 million homes sold since the Golden Visas came into effect in 2013 were purchased under this scheme, according to the real estate website Idealista.
According to Idealista spokesman Francisco Inareta, the housing problem in Spain was not caused by the golden visa program but rather by the lack of supply and an increase in demand.