Let’s Talk About The Spanish Golden Visa Termination…

Last week, The PM of Spain, Pedro Sanchez, announced that the Government has decided to terminate the country’s Golden Visa residential programme.

I believe that it is a very questionable decision, but what I question even more is the way this decision was justified.

What is the Golden Visa Programme?

The Golden Visa programme allowed individuals to obtain Spanish residency by investing a minimum of €500,000 cash in properties. This provided them with the freedom to live and work in Spain, and travel within the Schengen area without additional visa requirements.

Reasons for Termination

The Spanish government, led by Prime Minister Pedro Sanchez, cited two main reasons for discontinuing the Golden Visa programme. Firstly, it claimed that the program fuelled speculation, leading to increased property prices. He said: “The programme has become a speculative model which has made it impossible to find decent housing for those who live and work in them and pay their taxes every day."

So, why don't we look at the data?

Between 2013 and 2022 the number of Golden Visas that were applied for and granted was 4,940. In the same period, the number of properties that have been sold in Spain is 4.5 million.

With a quick calculation, this gives us a proportion of around 0.1%.? I don't think we need a degree in statistics to conclude that a proportion of 0.1% of investors applying for the Golden Visa has NO impact whatsoever on anything, let alone property prices!

The other reason the Government used to justify the termination of the residential programme is what the European Commissioner for Justice and Consumers, Didier Reynders, says: "The sale of citizenship through golden passports is illegal under EU law and poses serious risks to our security. It opens the door to corruption, money laundering and tax avoidance."

In my opinion, if someone wants to launder money, they are unlikely to do it by going through a very long process, which implies providing a huge amount of documents (including the source of the funds) and involving the police…. But on this subject, I am sure our governments (EU's one included) are much more knowledgeable than I could ever be…

So, Sanchez claims that the reasons why they decided to stop the Golden Visa is because it is the cause of the high prices of properties in Spain, and the fact that it's a way of laundering money. ?He concludes his declaration by saying: "This is not the model of the country that we need".

I would like to ask him if "the model of the country that we need" is the one with a PM who signs an amnesty deal with criminal political secessionists to keep his seat as PM... But I doubt he would answer.

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The Truth

The Spanish Government is eliminating the Golden Visa because of the pressure of the EU government, which seems to favour other types of “immigration”, and for clear propaganda reasons. The regional elections are coming up in May, and what better way of begging for votes than “punishing the (0.1%) of “rich” foreign investors, who are the source of all evil”?

Anyway, unfortunately, when we talk about politics in the Western world, we are all in the same boat…

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Impact on the Real Estate Market:

Moving from politics to a more cheerful and interesting subject, the termination of the Golden Visa programme is unlikely to have any significant impact on the Spanish real estate market, which remains extremely good, solid, and profitable.

Property prices have been steadily rising due to high demand and limited supply. Spain's attractiveness as a destination for expats, coupled with its robust infrastructure, quality of life, excellent healthcare, climate, and much more, continues to drive demand for property investment.

Additionally, the Government refuses to allow developers to build new properties to match the increasing demand (Spain is the country in Europe that builds the lowest number of new properties), and THIS is the reason why prices are going up, NOT the 0.1% of foreigners who apply for the Golden Visa!

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Alternative Residency Options

Despite the cancellation of the Golden Visa programme, there are alternative pathways for non-EU citizens seeking residency in Spain. These include the Digital Nomad Visa and the Non-Lucrative Visa.

I am at your disposal for any more information and to get you in touch with the best professionals who can support you with everything you need.

Spain remains, as it is confirmed daily on the international press, one of the best countries to invest in. Whether it is for relocation, secondary residence, or buy-to-let investments, it is worth exploring the very interesting options it offers.

Contact me, and let’s have a chat about it!

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