Spanish Senate Suspends Ban on Golden Visa Program

Spain’s Golden Visa program, which allows for residency through investment, continues to attract the attention of investors from around the world. However, recent legislative changes have created uncertainty among those who are only planning to take advantage of this opportunity.

Although the Spanish Congress approved a bill to abolish Golden Visas, the Senate vetoed it, sending it back for revision. This temporary setback not only gives investors more time to submit applications, but also opens up a debate about the future of the program.

What is a Golden Visa and Why is it So Popular?

The Golden Visa program was launched in Spain in 2013 to attract investment into the country's economy. Its main advantage is the opportunity to obtain a residence permit and travel freely within the Schengen area.

To qualify for a visa, one of the following conditions must be met:

• investment in real estate in the amount of 500,000 euros

• purchase of Spanish government bonds in the amount of 2 million euros

• investment in shares of Spanish companies or deposits in local banks in the amount of 1 million euros.

The main reason for the popularity of the program is its accessibility and flexibility. Investors do not have to permanently reside in Spain to maintain their status: it is enough to be in the country for just one day a year.

According to Catalan News, from the launch of the program until the end of 2023, Spain has issued more than 3,300 “golden visas” to Chinese citizens, 3,100 to Russians and more than 1,000 to British citizens.

Why is the program being considered for cancellation?

Despite the program’s success in attracting capital, its critics point to several problems:

1. Rising house prices. Since over 94% of all Golden Visa applications are for property purchases, this is driving up house prices, exacerbating the affordability crisis for locals.

2. Lack of economic benefits. The program’s terms allow investors to stay in Spain for a short period of time, which opponents say is not conducive to the local economy in the long term.

3. Calls from the European Commission. In 2022, the European Commission called on EU countries to stop the practice of “selling citizenship” through investment, saying it was incompatible with EU norms.

These reasons led to Ireland ending its Golden Visa program in February 2023, and Portugal ending its real estate visa program in July of the same year. The Netherlands followed suit in January 2024.

Latest developments: the ban is postponed

In April 2024, the Spanish Congress announced plans to completely abolish the program by January 2025. However, in December, the Senate vetoed the bill, sending it back for revision.

Part of the controversy is related to political infighting: the Senate, controlled by the center-right People's Party (PP), opposed the initiative put forward by the left-wing government of Pedro Sánchez. At the same time, the People's Party accused the authorities of an incorrect legislative procedure, calling the bill "incorrectly drafted."

While the Senate cannot definitively block the abolition of the program, it can significantly slow down the process. Congress can now only approve the ban in one of the next sessions. According to experts, even if the law is passed in early 2025, the program will not finally cease to exist until April.

Increased demand: the Golden Visa is still in demand

Amid discussions about the cancellation of the program, its popularity continues to grow. In 2024 alone, 780 Golden Visas were issued, of which 573 were issued after the announcement of the possible cancellation in April.

From the launch of the program until 2021, the annual number of visas issued remained below 1,000. However, in 2022, this figure increased to more than 2,000, and in 2023, it exceeded 3,200. This shows a significant increase in interest in Spanish real estate among foreign investors.

The benefits of investing in Spanish real estate

For those planning to buy real estate in Spain, the Golden Visa program remains one of the most attractive in Europe. In addition to a residence permit, investors receive:

• access to a stable real estate market with a high level of liquidity,

• the ability to rent out housing and receive a stable income,

• the prospect of long-term growth in the cost of housing.

Unlike other countries, Spain offers a relatively low entry threshold for obtaining a visa - 500,000 euros.

What should investors do now?

With the ban temporarily suspended, experts advise not to delay applying. Despite the political differences, the chances of the program being permanently cancelled remain high.

If you are planning to invest in Spanish real estate, now is the time to act. We at GG Real Estate Barcelona are ready to offer you the best properties in Barcelona and other regions of Spain that meet the requirements of the Golden Visa program.

Our specialists will help you:

• find the right property

• arrange all the necessary paperwork

• support the transaction at every stage.

Contact us today to take advantage of the last opportunity to obtain a Golden Visa and discover all the benefits of living in Spain.

The Golden Visa is coming to an end, but there are still opportunities for investors. Don't miss your chance to become part of bright and sunny Spain!