Moving to Mallorca is going to be slightly more complicated. | Majorca Daily Bulletin reporter

TW
2

A new year and new hurdles and challenges for Britons wishing to move to Mallorca - the Spain Golden Visa is set to end on December 31. The ban, which is still being debated, could also affect other investment pathways into popular destinations like Mallorca where non-resident British or ‘third country’ property owners are already having to negotiate the 90-day rule.

Under the current scheme, short-stay or residence visa for foreigners making a significant capital investment, understood as an initial investment of at least 2 million euros in Spanish public debt securities, or 1 million euros in stocks or shares in Spanish companies undertaking actual business activities, or in investment or venture capital funds incorporated in Spain, or in bank deposits in Spanish financial institutions.

The purchase of unencumbered real estate for a minimum of 500,000 euros, (if the investment is made by a couple married in community of property, one of the spouses may obtain an investor visa, and the other spouse, a visa as a family member of the investor). The government’s reasoning is that the increased interest in this option has contributed to the country’s housing crisis. Therefore, in a bid to better manage the housing crisis, in April this year, Prime Minister Pedro Sanchez, announced that the country would terminate the scheme.

Related news

The visa scheme was created in 2013 by the conservative government of Mariano Rajoy. It was seen as a way of attracting badly needed foreign investment in the wake of the eurozone crisis, which hit Spain’s property sector particularly hard. A total of 6,200 visas were issued until 2023 for investment in property, according to the organisation Transparency International, although other sources put the number higher.

Nearly half of beneficiaries of Spain’s Golden Visa - a total of 2,712 - were Chinese, according to Transparency International. One of the key reasons behind the anti-mass tourism protests this year was the lack of affordable housing which has been blamed on property speculation by foreign investors.

While the real estate route to getting a Spain Golden Visa will end on December 31, 2024, other investment options are expected to remain available. Investors might still be able to gain residency by investing €1 million in Spanish company shares or €2 million in government bonds. Furthermore, founding or acquiring businesses that create jobs or drive innovation in Spain might remain viable for potential residents by investment.

As Spain prepares to transition away from its current Golden Visa program, investors are encouraged to act quickly if they want to take advantage of existing opportunities before new laws take effect. The government intends to publish the final law in the Official State Gazette (BOE), likely in early 2025.
The best solution if moving to Mallorca is to obtain a resident permit, the biometric TIE card - that will also release travellers from the 90 day rule.