On 13 January 2024, the President of the Spanish Government announced at the Davos Forum the executive's intention to eliminate the Golden Visa for real estate investors. This declaration opened a legislative process that, as of April 2024, remains at the draft bill stage, without a confirmed date of approval but with sufficient parliamentary support to anticipate its passage in the coming months.
What the Spanish Golden Visa is and which routes it covers
The Spanish Golden Visa — formally named the “visa and residency authorisation for investors” — was introduced by Ley 14/2013, of 27 September, on support for entrepreneurs and their internationalisation. Title V of that law (Articles 61 to 67) sets the conditions under which nationals of third countries may obtain a visa and residency authorisation for reasons of economic interest, including significant investment in Spain.
The qualifying investment routes recognised by Ley 14/2013 are:
- Real estate investment: acquisition of property in Spain worth at least €500,000 free of charges and encumbrances. This is the most widely used route and the one the Government proposes to eliminate.
- Investment in company equity: investment in Spanish companies of at least €1 million.
- Bank deposits: deposits in Spanish financial institutions of at least €1 million.
- Government bonds: acquisition of Spanish public debt worth at least €2 million.
- Projects of general interest: investment in business projects that create qualified employment, generate significant socioeconomic impact, or contribute technological innovation.
The Government’s January 2024 proposal targets only the real estate route and does not call into question the other investment routes.
State of the legislative process in April 2024
At the time of publication, the Government has communicated its intention to incorporate the elimination of the real estate Golden Visa into an amendment to Ley 14/2013, the draft bill for which is being prepared in the Ministry of Housing and Urban Agenda. The final legislative text has not yet been presented to the Congress of Deputies.
The standard parliamentary process — including approval of the preliminary draft by the Council of Ministers, Council of State opinion, public consultation, submission to Congress, parliamentary committee stage, plenary debate and potential Senate proceedings — can take between six months and one year from the announcement. This places the potential entry into force in the second half of 2024 or, more likely, in 2025.
Impact on the high-value real estate market
The real estate Golden Visa has had a quantitatively moderate impact on the Spanish market: the number of authorisations granted through real estate investment has historically stood at between 1,500 and 2,500 per year, concentrated geographically in Madrid, Barcelona, Málaga and the Balearic Islands. The main countries of origin of beneficiaries have been China (historically the largest source), followed by Russia, Ukraine and Latin American countries.
In terms of investment volume, the Bank of Spain estimates that the real estate Golden Visa has attracted between €2 billion and €3 billion per year in property purchases. However, since much of this investment is concentrated in high-value segments that are already dynamic by their own dynamics, the net impact on prices and housing affordability for domestic buyers remains the subject of debate among sector economists.
Alternatives for investors once the real estate Golden Visa is eliminated
Non-EU investors currently using or planning to use the Golden Visa through real estate have several alternatives to maintain their presence and residency in Spain:
Digital Nomad Visa
Ley 28/2022 (the Startups Law) introduces the digital nomad visa for self-employed individuals or employees of foreign companies who wish to reside in Spain while working remotely. The requirement is to demonstrate minimum income of at least 200% of the SMI (approximately €2,300 per month in 2024), with no minimum investment required.
Non-lucrative residency
Article 47 of Royal Decree 557/2011 permits residency in Spain for non-EU nationals who can demonstrate sufficient economic means to support themselves without working in Spain (approximately €27,000 per year for the applicant, plus €6,700 per dependent family member). It does not grant authorisation to work.
Equity investment (non-real-estate Golden Visa)
The route based on investment in equity of Spanish companies (€1 million) remains in place. It can be structured through acquisition of shares or equity interests in an existing limited company (SL or SA), or through the establishment of a new company. The company does not need to be newly created or innovative, but the investment must be maintained throughout the authorisation period.
Special tax regime for relocated workers (Beckham Law)
The regime under Article 93 LIRPF allows non-residents who relocate to Spain for employment or business reasons to be taxed at the flat IRNR rate (24% on the first €600,000) rather than the progressive IRPF scale. This regime is entirely independent of the Golden Visa and requires no minimum investment — only that the taxpayer has not resided in Spain in the five preceding years and that the relocation is motivated by an employment relationship, the launch of a business activity in Spain or the active management of qualifying investments.
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