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A STATEMENT ON POTENTIAL GOLDEN VISAS SCRAP

Recent announcements have revealed Spanish prime minister, Pedro Sanchez and the Council of Ministers intent to review the Golden Visa scheme, citing concerns on the visa’s impact to Spanish housing affordability. During a press briefing on Tuesday 9 April 2024, Sanchez was quoted that Golden Visas are “not the model of the country that we need”, leading many to believe congress will soon scrap the scheme.

Spanish flag painted steps

As a result of a recent report submitted by the Housing Ministry, it is expected the Spanish government will formally launch the process to eliminate the scheme. The report disclosed a total of 3,273 Golden Visas were granted in 2023, with 94% attributed to real estate investments. A noteworthy figure in context of the 586,038 total recorded housing transactions in the same year. On the other hand, if all of 2023’s Golden Visas were linked to residential real estate, they would account for less than 0.5% of the overall market. Despite numerous developments, no formal progression or changes to the scheme has been announced (as of today) for applications to continue as usual.


Woman writing

For current Golden Visa holders, potential implications may arise. According to Spanish law, amendments to legislation that benefit the impacted parties can be be applied retroactively. However, modifications that are unfavourable to those impacted, may not be applied retroactively.


Open passport

Therefore, while changes to the Golden Visa scheme are being considered, current visa holders can have some reassurance that any modifications will potentially only affect future applicants, rather those already granted residency through the scheme, however with still a lot of unknowns, it's understandable for concerns to arise.


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“Next Stop Ibiza  takes the stance that while housing affordability is undoubtedly a legitimate and urgent issue, the Golden Visa scheme can not be held solely accountable or to blame. The broader economical opportunities that international investment brings to a country must be factored, particularly with Spain emerging from a recession no less less than ten years ago.


General comprehension surrounding the positive consequences an influx of private capital into Spain is incredibly beneficial, not only for the local economy, but also the country’s international reputation as an attractive investment destination. With residential investments set to face increased scrutiny, we predict buyers will rush to take advantage and we will see a surge of investment in Spanish property. Now has never been a more lucrative time to secure a purchase”, says PaddyAnne McAllister, founder of Next Stop Ibiza.


 

If you’re keen to discuss concerns surrounding your Golden Visas or to enquire about general visa options, get in touch with PaddyAnne McAllister of Next Stop Ibiza today. Email paddyanne@nextstopibiza.com



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