As Spain says adios to Golden Visa, Portugal says come on down!

Portugal reports massive increase in visa interest

Golden visa joy for many.

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The hugely successful Golden Visa ends in Spain next week firmly shutting the door on hundreds of British, American and other non-European Union citizens who wanted to move to Spain with few paperwork problems. The system has allowed thousands of non-EU citizens to gain Spanish residency in returning for buying a home valued at more than 500,000 euros.

But Spain´s loss could be Portugal´s gain with the Portuguese government speeding up the Golden Visa programme to attract more people.

According to The Portugal News. "The minimum capital required to qualify for the Portuguese Golden Visa is currently €168,000. These lower thresholds make Portugal a very cost-effective EU residency option, many of which investors will take."

The visa, both in Spain and in Portugal, has proved exceptionally popular with U.S. citizens who are moving to Europe, possibility as a result of the political uncertainty.

Real estate agents have said that the demise of the Golden visa in Spain is a major blow and they fear that non-EU citizens may look to other countries like Greece and Portugal who still have a visa programme.

Reasons for Spain’s decision to end the Golden Visa scheme for foreign investors: By AGM Abogados

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The abolition of the Golden Visa is attributed to several reasons, according to the proponents of this measure. Below are the main motivations:

  1. Negative impact on the Spanish Real Estate market:

The elimination of this scheme responds, in part, to the significant increase in property purchases by foreign investors, which has had a notable impact on the Spanish property market, particularly in specific areas. This trend has driven up housing prices and, in some cases, led to gentrification, making it more difficult for local residents to access affordable housing.

  1. Questionable Economic Effectiveness:

According to the text of the amendment, it is noted that other forms of investment linked to this regime have not had a significant impact on the economy, leading to questions about its effectiveness as a tool for attracting foreign capital. This last reason has been a key factor in the elimination of all investor visas, not just those for real estate investment, as originally planned. Although it is true that the other investment channels have not been widely used, it is possible that their use could increase once they become the only option.

  1. Limited residency options for non-EU nationals:

Spain offers other residency options for those who do not wish to reside permanently and become tax residents in the country but do not want to be restricted by the maximum tourist stay limits. These include non-profit residency or residency as a “digital nomad”, although all of these require spending more than six months in the country each year.

  1. Security concerns:

The measure also refers to a broader trend at the European level to review or tighten investment visa programmes. Since the Russian invasion of Ukraine, several European Union (EU) countries have begun to restrict such permits due to security and transparency concerns, particularly regarding the origin of funds.

https://www.agmabogados.com/en/elimination-of-investor-residency-golden-visa-in-spain/