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Last Updated on 17/07/2023 by STEPHANE
No more golden visas in Spain as in Portugal?
According to El Pais, the Spanish government is planning to toughen the requirements for obtaining a Golden Visa, a residency permit granted to foreign nationals who invest in Spanish property. This is aimed at reducing the risk of money laundering and improving transparency.
The Golden Visa program was introduced in 2013 to boost investment in the Spanish property market, which suffered during the economic crisis. The scheme enables non-EU citizens to obtain a residency permit in Spain in return for investing at least €500,000 in property, as well as satisfying other conditions.
However, there have been concerns that the program is being used by wealthy individuals to launder money and evade taxes. Over recent years, the Spanish government has investigated several cases of corruption and money laundering involving Golden Visa applicants.
Under the proposed changes, the investment threshold to qualify for a Golden Visa would be raised from €500,000 to €1 million. The government will also introduce more rigorous due diligence checks on applicants, including investigating the source of the funds used for investment.
The Spanish government will also introduce a new category of visas for foreign nationals who invest in innovative projects or create jobs in Spain. This new visa category will have similar requirements to the Golden Visa program but with a lower investment threshold.
The Spanish government believes that the changes will encourage foreign investment in Spain’s economy while reducing the risk of money laundering through the Golden Visa program. The new measures are expected to come into effect later in the year.
The proposed changes have received a mixed response. Some real estate agents and property developers have criticized the increase in the investment threshold, stating that it could discourage foreign investors from choosing Spain. Others have welcomed the stricter due diligence checks, believing it will improve transparency and reduce the risk of money laundering.
In summary, the Spanish government’s proposal to tighten the Golden Visa requirements reflects a growing concern among European governments about the risks associated with the scheme. Other countries, such as Portugal, Greece, and Malta, have also implemented changes to their Golden Visa programs to address similar concerns.
If you want to compare the performance of the European real estate markets up to December 2022 here is what you need.
Do you want to check the Spanish real estate market deeper?
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- Have a look at our quarterly report on the top 20 Spanish cities’ real estate markets
- Check our table on the national real estate market in Spain
- Check our table on the regional real estate markets in Spain
Source: El País (in Spanish)