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Changes in the Golden Visa in Spain 2024: What You Need to Know
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ABR
Changes in the Golden Visa in Spain 2024: What You Need to Know
The Spanish government is undertaking a significant revision of the Golden Visa legislation, a scheme that has allowed numerous non-European investors to obtain residency in Spain through real estate investments. Since its implementation in 2013, approximately 14,576 visas have been issued, mainly in the provinces of Barcelona, Madrid, Malaga, Alicante, Balearic Islands, and Valencia. This proposed change could redefine the investment landscape for future investors.
Introduced during the tenure of the Popular Party under the presidency of Mariano Rajoy, the Golden Visa was designed to attract foreign capital to the Spanish real estate sector during a time of economic need. Allowing non-EU residents to acquire residency in exchange for a substantial investment in real estate, the program has been particularly popular among citizens from China, Russia, the United Kingdom, the United States, Ukraine, Iran, Venezuela, and Mexico.
Current Impact and Proposed Changes
The Minister of Housing and Urban Agenda, Isabel Rodríguez, has indicated that the modification of the law seeks to promote social justice in housing access and reduce speculation, which has been especially prominent since 2022. The government plans to eliminate the option of obtaining a Golden Visa through the purchase of housing and redirect these investments towards affordable housing and property rehabilitation.
The purchase of housing by foreigners in cities such as Marbella, Barcelona, and several of the Balearic Islands has represented a significant percentage of real estate transactions, with real estate speculation raising prices and negatively affecting local markets. This change in legislation points to a balanced strategy, where local residents are protected while still attracting direct foreign investment.
Consequences for Existing and Potential Investors
Although the proposed changes may seem limiting, they also open the door to new opportunities for investment in projects with positive social impact. For existing investors, visas already granted will be respected under the previous legislation, while future investments will need to align with the new criteria. This will include options such as investing in public debt, in businesses with real activities, or in projects that promote affordable housing.The modification of the Golden Visa is a clear indication of the renewed focus of the Spanish government towards a more sustainable and ethically responsible economy. For investors, adapting to these changes will not only be crucial for the legality of their investments but also for maximizing their impact and profitability in an evolving market.
Are you ready to adapt to these changes and continue to be a key player in the Spanish real estate market? At Marti Projects, we offer the expertise and support necessary to navigate this new landscape. Contact us today to discover how we can help you align your investment strategies with the new regulations and take advantage of emerging opportunities.
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