For decades, Spain has maintained its status as one of the most attractive destinations for international capital migration. The combination of climate, safety, and clear legislation made it a “safe haven” for investors from non-EU countries. However, 2024 has become a turning point: the country’s government announced its intention to revise the terms of the Golden Visa program, which allowed non-EU residents to obtain a residence permit through a real estate purchase of €500,000 or more.
This news generated a wave of rumors and panic. Some claim the program is already closed, while others believe it is mere political rhetoric. In this article, we will analyze the real state of affairs, examine whether there is still a chance to jump onto the “last train,” and look at strategies that will help preserve capital and obtain the status of a European resident.
Is the Golden Visa Program Working Right Now?
The short answer is: yes, the program is running, but the window of opportunity is rapidly closing.
In April 2024, the government of Pedro Sánchez initiated the process to abolish the option of obtaining a residence permit (ВНЖ) through investment in residential real estate. The authorities’ motivation is straightforward: to combat speculative housing price increases in major cities (Madrid, Barcelona, Malaga, Balearic Islands), which is making property unaffordable for local residents.
However, in Spain, the legislative process does not happen instantly. For the cancellation to take effect, the relevant amendments must be approved by the Congress of Deputies, receive Senate approval, and be officially published in the State Official Gazette (BOE).
Important Nuances for the Investor:
- Principle of Non-Retroactivity: According to the Spanish constitution, laws that worsen the position of citizens usually do not have retroactive effect. This means that investors who manage to submit documents before the official publication of the new law are highly likely to maintain their rights to a residence permit and its renewal.
- Current Status: As of the time of writing, real estate registries and migration authorities (UGE-CE) continue to accept applications under the old rules.
- Risks: The main risk now is time. Collecting documents, opening a bank account, and completing the transaction takes 1–2 months. If the law is adopted during this period, you may be left with expensive property but without the residence permit.
Investor Residence Permit Requirements: A Checklist
If you decide to act quickly, you must strictly comply with the criteria of Law 14/2013 on support for entrepreneurs. The requirements for the investor remain among the most loyal in the EU.
Financial Requirements
The key condition is a minimum investment of €500,000 in Spanish real estate.
- Own Funds: The amount of €500,000 must be paid from the applicant’s personal funds, without using a mortgage.
- Mortgage: Only permitted for the amount exceeding the threshold of 500 thousand. For example, if the property costs €700,000, you can invest half a million of your own money and take out a loan for the remaining €200,000 from a Spanish bank.
Applicant Requirements
- Legal age (18 years or older).
- No criminal record in Spain or in the countries of residence for the last 5 years.
- Possession of private health insurance with full coverage (sin copago).
- Confirmation of sufficient financial means for living (separate from the investment amount).
Investment Geography: Where to Look for Liquidity?
In uncertain conditions, choosing a location becomes a critically important factor for capital protection. If investors previously massively bought villas on the Costa Blanca for seasonal holidays, now the focus has shifted to preserving the asset’s value.
Resort real estate is subject to seasonal fluctuations and suffers more during crises. In contrast, megacities show stable price growth and high demand for long-term rentals.
Why Madrid Wins Against the Coast?
Madrid is the economic and political center of the country. Headquarters of international corporations, top universities, and a constant flow of high-level expats are concentrated here.
The decision to buy an apartment in Madrid is today considered a protective strategy by experts. Unlike resort housing, an apartment in the Salamanca, Chamberí, or Retiro districts provides:
- Liquidity: The possibility to sell the asset quickly without loss of value.
- Yield: High rates for long-term rentals (an average of 4-5% per annum, which is an excellent indicator for a European capital).
- Lack of Seasonality: The apartment works 12 months a year, not just in summer.
Step-by-Step Algorithm: From Property Selection to Resident Card
The process of obtaining the Golden Visa requires clear coordination between lawyers, realtors, and the bank.
Stage 1: Preparation
The first step is obtaining a Foreigner’s Identification Number (NIE). Without it, no legally significant transaction can be made. In parallel, it is necessary to open an account in a Spanish bank. In 2024, compliance checks for citizens of CIS countries have significantly tightened, so a full package of documents confirming the origin of funds (income statements, tax declarations, contracts for the sale of assets in the home country) is required.
Stage 2: Due Diligence and Reservation
After selecting a property, an in-depth legal check is carried out. The presence of encumbrances (cargas), tax debts, and utility bills is verified. A reservation contract (Contrato de Arras) is signed, and a deposit is paid (usually 10% of the cost).
Stage 3: The Transaction (Escritura)
Signing of the deed of sale before a notary. At this moment, the full payment for the property takes place (usually by bank check). After signing, the notary sends the data to the Property Registry.
Stage 4: Application for Residence Permit
With confirmation from the Registry in hand, an application can be submitted to the UGE-CE (Unit for Large Companies and Strategic Collectives). An important advantage of the program is that you can apply while in Spain on a tourist visa. The processing time is only 20 working days.
Taxes and Hidden Costs that Realtors are Silent About
Many investors focus only on the advertised price, forgetting that overhead costs in Spain can reach 10–12% of the property’s value.
Below is a table comparing costs for buying second-hand housing and new builds:
| Expense Item | Second-hand Market (Resale) | New Build (Obra Nueva) |
| Main Tax | ITP (Property Transfer Tax) | IVA (VAT) |
| Rate | 6% – 10% (depending on the region) | 10% (fixed) |
| Stamp Duty (AJD) | Usually not charged | 0.5% – 1.5% (depending on the region) |
| Notary and Registry | ~0.5% – 1% | ~0.5% – 1% |
| Legal Support | 1% + VAT | 1% + VAT |
| TOTAL extra | ~8% – 12% | ~12% – 13.5% |
Important: The purchase of real estate does not automatically make you a tax resident of Spain. This is one of the main advantages of the Golden Visa over other types of residence permits. You become a tax resident only if you spend more than 183 days a year in the country.
Alternative Routes if the Golden Visa is Canceled
If you do not manage to take advantage of the investment program, there is no need to despair. Spain offers other working options for legalization.
- Residence Permit for the Financially Independent (Residencia No Lucrativa).
Suitable for those who have a high passive income outside Spain. The main drawback is the prohibition of working in Spain and strict stay requirements (you must live in the country for more than 183 days, which entails tax residency). - Digital Nomad Visa.
A hit of recent years. Suitable for remote employees and freelancers with an income of ~€2600 per month or more. This type of residence permit can be combined with the purchase of real estate for personal residence, but the purchase itself is not the basis for the visa.
FAQ (Frequently Asked Questions)
- Is it possible to buy several cheaper properties instead of one for €500,000?
Yes, the law allows the aggregation of property values. You can purchase, for example, two apartments for €250,000 each, or a residential house and commercial premises. The main thing is that the total amount of invested personal funds is at least €500,000. - Does the investor’s residence permit grant the right to work?
Yes. This is a significant difference from the “No Lucrativa” residence permit. The investor and their family members (spouses, dependent children of working age) receive the right to be employed or engage in business in Spain without additional permits. - Is it necessary to live in Spain permanently to renew the residence permit?
No. To renew the Golden Visa, it is sufficient to visit Spain once a year. This is an ideal option for those who want a “backup plan” but do not yet plan a full relocation. However, permanent residence is mandatory for obtaining Permanent Residence (after 5 years) and citizenship (after 10 years). - Can the residence permit be processed for the whole family?
Yes, the main applicant can include their spouse and minor children in the application. Adult children and parents can only be included if financial dependence on the main investor is proven and they do not have their own family.
Conclusion
The situation with obtaining a Spanish residence permit through real estate investment remains tense, but the window of opportunity is not yet closed. The current moment requires determination and a professional approach from the investor. If your goal is asset diversification and freedom of movement within the Schengen area, now is possibly the last chance to take advantage of the privileges of the Golden Visa program in its classic form.
However, it is extremely important not to act alone. Given the risk of legislation changing “on the fly,” be sure to enlist the support of specialized lawyers who can foresee clauses regarding the return of funds in the contract of sale in case the residence permit is denied.
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