Spain’s popular Golden Visa programme is ending in January 2025. If you have been considering using the scheme to gain residency through property or business investment, you must act fast. Initially, the intention was only to scrap the property-based visa, but now the plan is to axe all golden visas, including the investment options.
This decision comes as Spain tries to tackle its growing housing crisis. Rising rents and limited affordable housing have pushed the government to take bold steps, including scrapping visas that encourage high-value property purchases.
What is the Golden Visa?
The Golden Visa allows non-EU nationals to get residency in Spain if they invest at least €500,000 in property. Since Brexit shut the door on automatic EU residency, it has been straightforward for British citizens who can afford a property of this value to gain access to Spain and the Schengen Zone without restrictions.
Beyond property, the scheme also extends to those investing significant amounts in businesses or creating employment opportunities in Spain. This aspect has made the visa attractive to business people and investors, not just homebuyers.
The Golden Visa has been a lifeline for thousands of Brits. But with the deadline looming, the clock is ticking.
However, there is still a chance, as over the past three months, countless law firms have assured their clients that the golden visa cancellation will not be retroactive and that those currently processing their golden visas are not at risk of having their applications denied.
Why is Spain Scrapping the Golden Visa?
The Spanish housing crisis essentially drives the decision to scrap the Golden Visa. In many parts of Spain, housing has become unaffordable for locals.
Cities like Madrid and Barcelona have seen rent prices soar. Coastal regions and islands also face shortages of affordable homes as wealthy investors snap up properties. The Golden Visa has contributed to this problem, with wealthy investors often focusing on luxury homes rather than affordable housing.
Critics argue that the programme has made renting or buying a home harder for ordinary working Spaniards. By scrapping the scheme, the government hopes to ease pressure on the housing market and make homes more accessible for locals.
The Housing Problem in Spain
Spain’s housing crisis has been brewing for years. After the 2008 financial crash, the country experienced a property slump. But in recent years, demand has rebounded, especially in tourist hotspots and big cities.
Short-term holiday rental platforms like Airbnb have further squeezed the market. Landlords often prefer renting to tourists for higher profits rather than offering long-term leases to locals.
In response, the government has introduced strict regulations on short-term rentals in many cities. The move to end the Golden Visa is the latest effort to address these issues.
What Does This Mean for Business Investment?
The end of the Golden Visa will affect investors who relied on the scheme to gain residency. From January, they will need to explore other options.
Business investment has been an important part of the programme, particularly for those looking to start companies or fund projects in Spain. Its removal may discourage foreign investment in certain sectors.
However, the government appears focused on balancing these concerns with the urgent need to address housing and rental issues.
What Should Brits Do Before It Ends?
If you have been considering taking advantage of the Golden Visa, you must act fast. With the deadline in January 2025, there is still time to start the process, but you must not leave it too late.
Here is what you need to do:
Find a property: The minimum investment is €500,000. You can purchase one or several properties to meet this amount. Contact us for immediate help with this.
Start the application: Work with a lawyer or visa expert to make sure your paperwork is in order. The process can take several months, so starting now is absolutely essential. The important thing is to act fast. Waiting until the last minute could leave you with fewer options or a rushed incorrect application.
Other Visas for Brits After January 2025
When the Golden Visa ends, Brits will still have options for living in Spain, but the process may be more complex. Here are a few alternatives:
Non-Lucrative Visa
This visa is perfect for retirees or those with sufficient savings. You cannot work under this visa, but it allows you to live in Spain for an extended period. You will need to prove financial stability and private health insurance.
Digital Nomad Visa
Launched recently, this visa is perfect for remote workers. If you work for a company outside Spain or run your own online business, this could be a good option. Digital nomads must show proof of a minimum income of €2,400 per month, which increases if you are accompanied by a partner or children. If you become a digital nomad visa holder, you automatically become a tax resident.
Work Visa
If you plan to work in Spain, you will need a work visa. The process can be lengthy and requires a job offer from a Spanish company.
Family Reunification
You may qualify for this visa if you have family members who are Spanish citizens or already legal residents.
Entrepreneur Visa
Although the Golden Visa is ending, Spain still encourages entrepreneurship. The entrepreneur visa is possible for those starting innovative businesses contributing to the economy. This permit allows entrepreneurs, along with a spouse, dependent children, and dependent parents—to live in Spain for an initial three years, with the possibility of renewal. The visa targets projects that will generate jobs, attract investment, use advanced technology, and contribute to the socio-economic development of Spain.
Why Brits Are Rushing to Apply For The Golden Visa
Many Brits are now rushing to get their paperwork ready to present before January. This is understandable, as the Golden Visa offers benefits that other visas do not match. It allows you to work, live, and travel freely in Spain and the Schengen Zone.
For British retirees, it has been a way to enjoy a sunny lifestyle without worrying about post-Brexit residency rules. For investors, it has been a gateway to opportunities in Spain’s growing economy.
With the scheme’s end in sight, many UK citizens are rushing to apply for the visa before they lose this option.
The Legal Process
Spain’s Congress approved the abolishment of the golden visa residency scheme for wealthy third-country nationals on Thursday, November 14th.
This comes seven months after Prime Minister Pedro Sánchez initially announced his intention to scrap a scheme that’s been criticised for several reasons, from inflating property prices in Spain to giving EU residency to foreign criminals.
Although congressional approval is a very important step for a bill to pass on several occasions passed, it’s still not the final nail in the coffin for the golden visa.
So, Is There Still Time To Apply?
Once the Spanish Congress of Deputies gives a new law the thumbs up, it has to go to the Senate, which studies the legislation and makes amendments if necessary before it is sent back to el Congreso again for final approval. If this happens, the legislation is published in the Official State Bulletin (BOE), and only then does the law come into force.
So what does that mean for people still wanting to apply for Spain’s golden visa? Is it now too late to obtain this easier option for Spanish residency, or could they still apply?
The legal text specifies that “investors or relatives of investors who, prior to the date of entry into force of this transitional provision, had submitted the corresponding request, may receive the corresponding visa or authorisation in accordance with the regulations in force on the date of submission of the application.”
Therefore, golden visas can continue to be requested and granted until the law comes into force after its publication in the BOE.
Generally speaking, Spanish authorities have a deadline of 20 days from the submittal date for processing the application.
It’s also worth factoring in the time it takes to find and buy a property, which becomes a faster and easier process with the help of professionals.
As January 2025 is the most likely end date to apply for a Golden Visa, submitting the paperwork before then is not impossible, but it will be challenging.
Contact Us
At Javea Properties, we have plenty of fabulous villas for sale that meet the criteria for gaining the Golden Visa. For more details, contact us today, as time is running out!
