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.
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.
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You're right, Brits have been selling up and leaving for some time now. Statistically, it's Europeans buying up or renting the million plus properties. The many luxury properties that have been built or bought in the past decade out in the uncharted by wilderness beyond Calvia are occupied by Germans, Swiss, Austrians, Scandinavians, and even a few Americans. It's rare to find Brits outside of the handful of British enclaves. But that's old news. Ponder this: if the going price for a can of beans is 1€ and everybody is buying them at that price, would you be inclined to sell them for 25¢, just to help out the less fortunate? Ironically, I'd wager that the same ones who buy property for a million would be the same ones that buy your beans for 25¢, in droves. So, who would you actually be helping? The root of the problem isn't foreigners. It's that there isn't sufficient high paying employment in the balearics to match that of the highly skilled employed economies. To someone from Europe, prices here look pretty attractive, even though it's unaffordable for *many* locals. I say *many*, because many other locals have plenty of money, but you'll never hear about them. It's largely cheap imported labour that can't cope and end up in poverty. And those who do have properties to rent, are seeking Europeans as tenants, because they can pay the rent. And they're unlikely to be squatters. How do you fix it? Discouraging foreigners and their money is only going to make it worse. But maybe a big economic crash is the only solution? But then, everybody suffers. Problem still not solved. In any case, it's a very complicated problem with a very murky relief.
It’s not the “British” Investor that is affecting property prices, post Brexit with the Investment required the Brits are primarily buying , renting million euros plus property What is happening now is that the Europeans are buying up the Sub 500 k property’s at an alarming rate Take a look at Menorca , the French are taking over ( Estate Agent in Mahon words not mine ) Post Brexit, and I’m not the only Mover, three thousand plus “Brits” homes have left, Most to the UK, however a proportion to Portugal, Italy which appear to be more cost / tax friendly than spain What Mallorca is struggling with is affordable Housing for its native residents, but that’s not the “Brits” fault, 100s of millions worth of property owners whom supported the Island with massive spending power have now gone, Residents of many Nationalities have / are of to the Peninsular Shortly the Island is going to run out of its core workforce because they cannot afford a place to live There are many “Locals” that can’t be rented out as there are no customers to support them, these are getting converted into Studios The Answer, Question those whom are dictating these Rents etc, And whom primarily are they
tranq tranquerSo, this golden visa, designed to attract wealthy foreigners and their money, is being eliminated. And that's a good thing because it was an utter failure. All it did was attract wealthy foreigners and their money.
Good, the last thing we need are more non resident second home owners.
More complications. Slightly more complicated. Cancellation of the Golden Visa. The articles notes that the removal of the Golden Visa was announced in April . Long enough for the Brits thinking about this offer to make up their mind. Sorry but this whole article smacks of a piece by that well known journo Phil Space What did the scheme achieve, lots more Chinese, I'll bet the majority are Hong Kongers . I don't blame them escaping from that failed diplomatic wheeze we created to try and maintain some influence over there but surely Asia with its multiple democratic countries is their natural home.