SPANISH prime minister Pedro Sanchez recently announced his intention to cancel the Golden Visa scheme.
The Socialist PSOE leader said the move would stop speculation of the property market.
The programme grants any foreigner residency if they buy a home worth €500,000 or more. The law was approved in 2012 in the middle of a recession following the real estate crash in 2010.
Its main aim was to reactivate the Spanish property market and attract foreign investors to buy all the real estate portfolio left with the banks, especially in those days when prices were extremely low and economies were suffering across the EU.
During its first years, the main applicants for the Golden Visa were from the Middle East, Russia and China.
But since Brexit came into full effect in 2020, there has been an increase in British applicants, who see it as the easiest route to moving to Spain permanently.
There are also more advantages when compared to other types of visas.
But what many people don’t know is that if you have bought a property or properties in Spain within the last 10 years, the money you invested can be added to any additional investment to meet the €500,000 threshold.
However, this only applies as long as you are still the owner of the property and have not sold it.
For example, if you spent €100,000 to secure a €350,000 property six years ago, and now you spend €400,000 on a €1million villa, this would make you eligible for a Golden Visa, as you have invested €500,000 cash into property in Spain.
Or if you spent €150,000 on two properites (€300,000), and spend €200,000 for a third home, you will also be eligible.
Essentially, if you have invested €500,000 on Spanish properties in the last 10 years, you can apply. This includes people who invested €500,000 cash into a single property.
At the moment, the Government is drafting a new act to abolish the Golden Visa, but until that is passed, there is still time.
To apply you will need to comply with the following:
- Have an Investors’ Residency Visa that is in date and not expired
- Have travelled to Spain at least once during the visa’s approved period
- Prove that the €500,000 investment is still in place
- Be over the age of 18 and without a criminal record
- Have medical insurance and sufficient money or financial means to support the applicant (and family) during the period of stay in Spain
The Residency Visa will be applied for and granted by the Spanish Consulate of where the applicant is buying.
A Residency Authorisation will need to be applied for and is granted by the Directorate-General of Migrations.
The application for a Residency Visa will be resolved in a maximum period of 10 days, except where the application is subject to the EU Visa Code.
The Residency Authorisation will be granted in a maximum period of 20 days from application after which period. If the Consulate has not responded, the application will be presumed granted.
For any questions about the process, contact diego@fairwaylawyers.com or send a message via Whatsapp to +34 606 307 885.
