On November 14, 2024, was approved the provisional text by which the Spanish Golden Visa will be eliminated.
The regulatory change has been articulated through an amendment introduced in the last Justice Commission in the Draft Organic Law on measures regarding the efficiency of the Public Justice Service and collective actions for the protection and defense of the rights and interests of consumers and users (the “Bill”).
What does the regulatory change entail?
It eliminates all the articles that establish the requirements and conditions of the Golden Visa.
When is expected to come into force?
This elimination of the enabling assumptions for the Golden Visa is expected to come into force three months after the publication of the law in the Official State Gazette, initially scheduled for January 2025.
Practical effects of the elimination
The new regulations will include transitional provisions to protect situations generated prior to the entry into force of the Bill.
In particular, the transitional provisions provided for are the following:
• Initial Application. All applications submitted before entry into force may follow the process of obtaining a visa or authorization in accordance with the regulations in force at the time of the application.
For clarification purposes, if all requirements are met and, for example, the application is submitted before the end of the last day of the three-month period indicated above, the Administration should grant the residence permit, even if the concession is already agreed at a time when the new regulation is in force.
• Renewal. Residence permits already granted to investors for the acquisition of real estate will remain valid until their expiration date.
However, to request subsequent renewals, the regulations in force at the time of the initial concession will apply – not at the time of submission of the application.
It will be essential to receive adequate and ongoing advice to correctly manage these initial applications and renewals, as well as to assess the possible impact of these permits on tax residency, taking into account the requirements established by Spanish legislation to acquire tax residency (rules relating to the number of days of stay in Spain in each calendar year and the location in Spain of the main base of economic activities, as well as the legal presumption of residency if the legally non-separated spouse and dependent minor children are residents in Spain).
The determination of tax residency in Spain may determine the subjection to taxation on worldwide income and assets, so a careful analysis of tax residency is necessary.
A brief summary of the different investment options, requirements and benefits of the Spanish Golden Visa:
A Golden Visa is a type of residence visa, established by Law 14/2013 of the 27th September 2013, aimed for non-EU residents who wish to enter Spanish territory in order to carry out a significant capital investment.
What type of permit or visa is applicable
A Residence visa for a one-year residence.
Three-year residence permit that can be renewed:
− If the investment is maintained, and
− If you have made at least one visit to Spain during the residence period.
Who can apply?
Investors who make a significant investment in Spain:
− Real Estate assets (€500,000). The investor could buy one or more properties as long as the total value is 500,000 euros or more.
− Shares or bank deposits (€1 million)
− Public debt (€2 million)
Business projects in Spain considered being of general interest.
What other benefits are there?
The residence permit allows its holder to live and work anywhere in Spain.
The awarding of this residence permit does not require actual residence in Spain, which is considered to be that over 183 days. The only requirement is to visit Spain once during the period of residence.
Combined processing of permits for couples and their children.