End of the Golden Visa in Spain, the residency for real estate investment, after more than a decade in force. We analyse how this decision will affect the high-end housing market.
What was the Golden Visa?
The Golden Visa was a programme created by the Spanish government in 2013 to attract foreign investment, especially in the real estate sector. This special visa allowed non-EU citizens to obtain legal residency in Spain by purchasing real estate valued at more than 500,000 euros.
For more than 10 years, the Golden Visa facilitated the arrival of investors from countries such as China, Russia, Iran and Venezuela, who were looking for a quick way to legally reside in Spain while diversifying their assets into high-value properties.
However, the situation has changed. The end of the Golden Visa in Spain is now a reality.
Why has the Golden Visa come to an end in Spain?
The government has decided to put an end to the Golden Visa in Spain in order to curb property speculation and protect the right to housing. According to the government, this type of visa contributes to rising prices, especially in cities such as Madrid, Barcelona, Valencia and coastal areas of high tourist interest.
This measure is intended to promoting access to permanent housing and prevent real estate from becoming purely financial assets for foreigners who do not even reside in the country. The end of the Golden Visa in Spain The new housing policy thus responds to a new housing policy that is more focused on social sustainability.
Effects of the end of the Golden Visa in Spain on the luxury real estate market
From Lumina Propertiesas specialists in exclusive properties in Valencia and the Costa Blanca, we consider that the end of the Golden Visa in Spain will have a number of consequences for the luxury real estate segment:
1. Reduction of the foreign investor buyer
Many non-EU buyers who invested mainly because of the visa will stop doing so. This could lead to a slight fall in international demand in certain premium areas. However, this reduction will mainly affect speculative investor profiles, not real buyers looking for quality of life.
2. A more stable and professionalised market
The end of the Golden Visa in Spain can lead to a positive cleansing of the market, favouring more transparent transactions based on the real value of properties. It is an opportunity to consolidate a healthier and more long-term oriented market.
3. Opportunities for European buyers
With less pressure from non-EU buyers looking for quick residence, a new window of opportunity could open up. space for EU buyers or nationals with purchasing power who were previously outbid by large foreign capital.
4. Change of profile: from investor to resident
The end of the Golden Visa in Spain gives way to a new type of client: people who really want to live in Spain, telework, start a business or retire in high-end areas such as Valencia, Jávea or Altea. This profile is looking for more than a visa: they are looking for lifestyle, security, culture and climate.
Is this the end of foreign investment?
Not necessarily. Although the end of the Golden Visa in Spain is an important change, it does not prevent non-EU citizens from continuing to buy property. What changes is that residency is no longer automatically linked to that purchase.
Spain continues to be one of the preferred destinations in Europe to live, invest and enjoy. In addition, there are other legal ways to obtain residency, such as the visa for digital nomadsvisas, visas for entrepreneurship, studies or roots.
More information through this link on the website of the Spanish Government
Conclusion: a new era for the real estate market
From Lumina Properties we believe that the end of the Golden Visa in Spain marks the beginning of a new era in the luxury real estate sector. A less speculative market, more focused on quality, sustainability and real residence.
Our commitment is to continue offering the best luxury properties in Valencia and the Costa Blanca, adapting to regulatory changes and offering comprehensive advice to national and international buyers, with or without a visa.
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