What is Spain's “Golden Visa” Program?

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Foreigners that have made a significant investment in Spain can benefit from the special residence permit for investors. It is commonly referred to as the “golden visa program.” It was first introduced in September 2013 with the approval of Act 14/2013, of 27 September, of Support to Entrepreneurs and Their Internationalization.

Since then, this law has become a very popular tool not only for investors from all over the world, but also for many Spanish companies that got a much faster way to hire highly-qualified persons from abroad, or for multinationals in need of transferring staff to Spain on a temporary basis.

Since April 2024 there have been talks that Spain may end or modify its golden visa program, in particular, ending the possibility of real estate investment.

What Investments Qualify?

• Investments in real estate of €500,000 net and above.
• Financial assets (bank deposits, shares, investment funds of €1 million, public debt of €2 million).
• Business projects of special interest to Spain—there is no minimum amount, but you will need to obtain a prior approval from the Directorate of Commerce and to prove that your business will be of “general interest” to the country.

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Main Advantages

• For real estate investors—you can rent or lease the properties you own and to generate income.
• Properties can be purchased jointly provided that each of the joint owners invests €500,000.
• Any type of golden visa residency does not require actual residence in Spain. This means you can spend less than 183 days in Spain and continue being a tax resident in your country of usual residence.
• Your family can apply together with you in the same application.
• You and your family will be directly authorized to work or set up a business in Spain without any geographical or sector restriction.

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How to Get It

First you need to complete the investment process, that is to say, deposit the money in the Spanish bank or investment fund, or complete the property purchase and register it in your name in the property registry.

Technically it is possible to request the residency permit just after signing the down payment contract of purchase and sale with payment of a deposit, however, in practice it is rarely done. This is primarily because the residency permit requires that the entire purchase amount be deposited in a Spanish bank, which usually happens just before completing the purchase at a notary public.

If you are outside of Spain, you will need to get an investor’s visa first through the Spanish Consulate of your country of residence. The law says such visas must be issued with priority within 10 working days. Unfortunately, as with many official procedures in Spain, especially in diplomatic missions, it is quite common to encounter delays.

If you are already living in Spain on a different visa or residence permit, or legally visiting as a tourist, you can apply directly for an investor’s residence permit. You need to submit your application online directly to the Large Business and Strategic Groups Unit (Unidad de Grandes Empresas y Colectivos Estratégicos, or UGE), typically through your immigration lawyer.

The UGE must respond within 20 working days, and if they don’t your permit is deemed “approved by administrative silence.” In practice, the UGE usually responds quite fast to such applications, so you can expect to get an answer in a matter of a couple of weeks. After that, you just need to get your residence card, which will be issued for three years, renewable for five.

You can find more information at the official website of the UGE.

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A Look at the Numbers

According to the official Spanish Government web La Moncloa, since the law was passed in 2013, 14,576 golden visas have been granted for investments in real estate, mostly to citizens from China, Russia, the United Kingdom, the United States, Ukraine, Iran, Venezuela and Mexico. The main real estate investment provinces are Barcelona, Madrid, Malaga, Alicante, the Balearic Islands and Valencia, which account for 90% of the authorizations granted throughout Spain.

To provide a bit more of context, the total number of permits that Spain issued just in the year 2022 (including EU citizens, post-Brexit permits, and any other permits allowed under the Spanish law) was of 1,068,976, so we can see that the total number of the golden visas based on real estate investment is quite low in proportion of the total number of residence permits granted.

There was a significant decrease in the number of golden visas issued in Spain in 2020, mainly because of the travel restrictions caused by COVID-19. According to some statistics, the number of residence permits obtained by investors was half as many as in 2019. However, these numbers quickly recovered as soon as the travel bans were lifted, and have been increasing steadily since 2021 as Spain remains a very attractive place for foreign investment.

Brexit was one of the main factors that contributed to the increase of applications for Spanish golden visas in the last few years. Spain is a very popular place for Brits to purchase a second residence, and since the UK left the European Union, UK citizens must comply with the general Immigration rules, and also new rules apply to Britons seeking to buy property in certain areas. Starting January 1, 2021, UK citizens that did not have Spanish residency before the withdrawal deadline will need to obtain their residence permits under the same rules as other non-EU nationals, and the golden visa is a pretty straight-forward way to do so for those who own a property of significant value.

Another notable tendency in golden visa applications in the last couple of years was a sharp decrease of applicants from Russia and a significant increase of applications from Ukraine, mainly due to the military conflict that started in February 2022 and the consequent sanctions imposed against Russia.

Will the Golden Visa Program End Soon?

Up until the date of writing of this post, real estate investment, by far, has been the most popular option for expats. It offers the lowest amount of all (€500,000), and has been seen as the most “reliable” and easy-to-execute approach.

The Spanish Government announced in April 2024 that it wants to end the golden visa program for real estate investors, claiming that the measure aims to “guarantee that housing is a right and not merely an object of corporate speculation.”

Since then, the Parliamentary Group “Sumar” introduced a bill to modify significantly the 14/2013 Act on International Mobility, which initially introduced the golden visa. The proposed reforms eliminate completely the investment in real estate and investment funds, while keeping the investment of public debt of €2 million, bank deposits or shares in Spanish companies €1 million, or undefined amount in business projects of special interest to Spain.

It is hard to know whether their initiative will receive enough support from other stakeholders, nor how long it may take until the proposed bill goes up for a vote.

Meanwhile, as of the date of writing this article, the golden visa program works in the same way as it has from the beginning, and it is still possible to apply for a visa or residence permit on any of the above investments, including €500,000 in real estate.  

Anna Klevtsova is managing partner of Klev&Vera with over 18 years of experience in public service and international cooperation projects. Anna leads the corporate and immigration practice, specializing in company formations, investment transactions and immigration strategies. Anna is fluent in English, Russian, Spanish, and also speaks French and Catalan.

Sponsored by Klev&Vera International Law Firm.

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Published March 11, 2021, updated September 5, 2024.