Spanish Gov’t. Submits Amendment to Scrap Golden Visa – And Not Just for Real Estate

The Spanish government, led by Prime Minister Pedro Sánchez’s Socialist Party (PSOE) and the leftist Sumar party, has presented an amendment to Congress to begin the process of eliminating the country’s golden visa program on Wednesday, according to the Spanish daily El País.

Introduced in 2013 by Mariano Rajoy’s conservative government to attract foreign capital during an economic crisis, the golden visa has granted residence permits to approximately 15,000 foreigners who purchased properties worth more than €500,000 over the past decade.

The PSOE registered an amendment in Congress today to eliminate all routes toward residency by investment, including the golden visa. Krista Victorio, Managing Partner & Client Services of Orience, explains that “the text amends the Organic Law Project, and while it is not related to Law 14/2013 of September 27 (the law that established the program), it appears that the initiative is trying to leverage an existing law project to simultaneously affect the golden visa, albeit indirectly.”

The government has found that nearly all golden visas came under the real estate option despite the possibility of investing in other areas such as public debt, shares, bank deposits, funds, and business projects.

Foreigners’ housing acquisition has increased recently, particularly in Spanish towns with the most real estate tension. Government members have raised concerns about upward pressure on a strained housing market.

Housing Minister Isabel Rodríguez is leading the initiative to amend the Law on the Public Service of Justice, which would fulfill Sánchez’s promise from April. The amendment, which the PSOE believes has clear support in Congress, will eliminate all types of golden visas, including those offered in exchange for investing in a business project.

Victorio explains that “the proposal is now in the article amendment phase, a process that will remain open until September 4, as the legislative process is set to begin no earlier than September 9.”

She clarified that “the specific text of the proposed amendment has not yet been made public, but sources have indicated that it aims to repeal articles 63, 64, 65, 66, and 67, which would eliminate the possibility of granting any new visas in the future (including investments in real estate, shares, funds, and public debt), but reinforces that those that are already in effect will remain valid and can be renewed as normal.”

The government considers housing a priority issue, stating that rising prices are diluting the effects of social improvements, such as the 54% increase in the minimum wage, by taking an increasingly large portion of household incomes, especially among the younger population. The coalition faces parliamentary difficulties but appears to have significant support in Congress for ending the golden visa program, according to El País.

The amendment’s explanatory statement, as reported by El País, asserts that golden visas have failed to attract investments and have come primarily through real estate purchases, which the PSOE claims do not create jobs and contribute to an overheated market.

The PSOE asserted that several European countries are eliminating similar permits following recommendations from the European Commission, particularly after the Russian invasion of Ukraine, as many Russian millionaires have used these visas. It also cited concerns about their challenges in combating money laundering.

Victorio emphasizes that “the process of discussing and approving a proposed law modification via normal legislative process is complex and is typically subject to several rounds of changes, challenges, and various modifications from several interested parties.” She also notes that “as of today the program remains unchanged, and it is business as usual.”

If approved, the amendment will repeal articles 63, 64, 65, 66, and 67 of the 2013 law on support for entrepreneurs and their internationalization, effectively ending the issuance of new golden visas. However, two transitional provisions will allow existing visas to remain in force or obtain renewal according to the criteria of the 2013 law.

Victorio recommends that “in consideration of the circumstances and given the evolution of similar programs, it is our strong recommendation to finalize and secure your Spain golden visa as soon as possible, as the current version of the law remains in force.”