Changes in housing law in Spain. Facts and myths

The end of the so-called "Golden Visa" program is coming? True 

Let us remind you that the "Golden Visa" is a special residence permit in Spain for foreigners. For several years, since 2013, this financial instrument has enabled non-EU citizens to obtain the right of residence in Spain by investing at least half a million euros in real estate. The program also covered other forms of investment, including the purchase of Spanish securities, bank deposits worth over one million euros and investments in Spanish companies. In return, non-EU citizens could obtain the right to reside in Spain for three years and access to the Schengen area. 

Although "golden visas" were popular among investors from around the world, in recent years there has been increasing talk about ending the program. The bill was approved by the Congress on November 14, 2024, then ratified by the Senate and published in the Journal of Laws (BOE) on January 3 this year. The changes will enter into force on April 3, 2025.

Will changes in the field of "golden visas" also apply to EU investors? Myth

The so-called program "golden visas" concerned only foreigners from outside the European Union and only this group of investors will be affected by the modifications related to its closure. EU residents can purchase real estate in Spain under unchanged conditions. 

Can applications for a "golden visa" be submitted before April 3, 2025? True

Applications submitted before the entry into force of the Act will be considered in accordance with the provisions in force on the date of submission of the application. Investor visas that will be valid on the date of entry into force of the transitional provisions will remain valid for the period for which they were issued. In the event of an extension of visas already granted for the purchase of real estate, they will be processed and resolved in accordance with the regulations in force on the date of issue of the original permit.

Is 100% property tax already a done deal? Myth

Spanish Prime Minister Pedro Sanchez announced the introduction of a 100% property tax for foreigners from outside the European Union, which would improve the housing situation on the Iberian Peninsula. However, the introduction of a solution that would affect foreign investors from outside the EU has not yet been decided. The Spanish government is yet to start work on this project. According to data from the Spanish real estate registers, transactions involving foreign buyers, including those from the EU, account for approximately 15%. the entire Spanish housing market. Spaniards still dominate among people buying apartments and houses on the Iberian Peninsula. About 85 percent of them are residents of this country. Additionally, foreign investment is one of the main drivers of the Spanish real estate market, especially in destinations that are most popular among tourists and international buyers, such as the Costa del Sol. Currently, the real estate tax in Andalusia is 7 percent, which further encourages foreign investors to purchase apartments and houses in this region.

Will 100% real estate tax not apply to EU citizens? True

The 100% real estate tax, if it comes into force at all, will apply only to investors from outside the European Union. As in the case of "golden visas", tax changes will not apply to EU citizens. The imposition of a special real estate tax will not affect transactions on the Spanish real estate market concluded by EU investors.