On 8 April 2024, the President of Spain, Pedro Sánchez, announced that he would initiate procedures to eliminate the granting of residence visas for investment, known as Golden Visas, for the purchase of real estate in Spain.
The aim of this measure is to curb real estate speculation in high density areas of large cities and to guarantee the right of access to housing for residents in Spain.
It is worth remembering that currently, investing in real estate worth 500,000 euros or more, free of liens and encumbrances, grants the right to apply for the Golden Visa in Spain.
As a result of this news, it is opportune to highlight and clarify some relevant points, often unknown, of the Golden Visa both for those interested in obtaining this type of residence and work permit in Spain while it is in force, as well as for those who already possess it. We explain them below in question-answer format:
If the law is modified what will happen to my already granted Golden Visa for having acquired a property in Spain?
Under no circumstances can the law have retroactive effect. That is, those Golden Visas granted before the modification of the law will remain in force throughout their valid period. As for their renewal, it will be necessary to analyse what the new law stipulates, which could provide a transitional period for such renewals.
Apart from investments in real estate, what other forms of investment entitle one to apply for the Golden Visa?
Investments in government bonds, shares in Spanish companies, investment funds and bank deposits. More details on these ways of investment can be found in our article of 22 March 2018.
Is it possible to apply for the Golden Visa if the investment is carried out through a legal entity?
Yes. In this case it must be proven that the foreigner owns, directly or indirectly, the majority of the voting rights and has the power to appoint or dismiss the majority of the members of the management body of such a company. In other words, the applicant must own more than 50% of the company in question. Furthermore, the company’s registered office must be in a country that is not considered a tax haven under Spanish law.
These points must be accredited in a favourable report from the Directorate General for Trade and Investment of the Ministry of Industry, Trade and Tourism, which is mandatory to obtain prior to applying for the Golden Visa.
And if a property is acquired by several owners, can they all obtain the Golden Visa?
Yes, but only if the owners applying for authorisation each have at least 500,000 euros invested, free of liens.
To prove this, both the deed of sale and the certificate of ownership and liens must clearly specify the part of the property that corresponds to each owner.
Is it compulsory to buy only one property or can there be several?
You can access the Golden Visa even if several properties are purchased, but in this case their total value must be equal to or greater than 500,000 euros, free of liens or encumbrances.
In the case of spouses and minor children, it is clear that they can apply for the Golden Visa as family members of the investor. But what happens in the case of children of full age?
Children of full age can also apply for the Golden Visa as family members of the investor if they meet the following requirements: (i) they have not formed their own family unit and (ii) they are financially dependent on the investor or their spouse or partner. To prove that compliance with these requirements, the appropriate documentation from the country of origin must be provided.
How many days a year must I stay in Spain to renew the Golden Visa?
There is no specific number of days that the investor must stay in Spain in order to renew their permit. It is sufficient to enter Spain at least once during the validity of the Golden Visa. However, it is necessary to continue as the owner of the property that gave the right to the permit in order to extend it.
