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The Spanish Golden Visa is gaining popularity among investors

September 14, 2022

4 minutes read

Spain's Golden Visa is growing in popularity among investors

The number of foreign investors who want to live and work in Spain is visibly growing. Industry experts say that this interest appears in individuals who are planning to acquire inflation-resistant assets at the expense of overseas property.

According to Mohammad Butt, director of the office of Lucas Fox in Barcelona, the bulk of customers - people from the United States, the United Arab Emirates and Britain. British citizens are interested in the Golden Visa because of the exit from the EU - before the referendum, they had the opportunity to stay in the territory of the European Union for more than 90 days without obtaining additional permits.

More and more customers from the UK are selling real estate in their country to later invest in the Spanish real estate. Also, many companies are moving online, which provides more freedom of movement for employees.

According to Eurostat, in 2021 Spain has granted more than 370,000 primary residence permits to non-EU citizens (31% more than in 2020). This is only 13% of the total number of residence visas issued throughout the EU.

Details of the Golden Visa program in Spain

The program has been in effect since 2013, and participation in it involves investing 500,000 EUR or more in Spanish real estate. It allows foreign nationals to live and work legally in Spain, as well as travel without restrictions in the Schengen zone.

Raul Pinera, partner of the law firm Piñera del Olmo Canals, believes that Spain is chosen for its favorable climate, comfortable beaches, reasonable prices, a lot of cultural events, as well as international cities (such as Barcelona). A separate advantage for Americans is a convenient flight connection to the European country.

According to Piñera, in July the government made significant changes to the system. Thanks to this, obtaining a residence permit has become much easier. Now, it is easier for persons who want to live or study in Spain, to stay on its territory after obtaining a job and registration of the residence permit.

Data from INE (National Statistics Institute) show that, as of January 2022, about 5.4 million foreign nationals reside in Spain. At the same time, in 2021 their number was 49 612. The majority are Moroccans, Romanians, people from Great Britain, Colombia and Italy.

Due to rising oil and gas prices, the UAE citizens who are considering the purchase of Spanish real estate are also among the customers. Since they often work in an area that is largely dependent on external economic conditions, there is an increase in the number of requests.

Foreigners invest in Spanish real estate

Over the past year, the number of Spanish property buyers from outside the European Union has increased by 141%. The media report that the British citizens are leading by number (40%), and they are followed by the Americans (27%).

Butt said that the main reason for the popularity of real estate - the available starting price of 500 000 EUR, as well as the ability to use the object as an investment vehicle. Quite a few customers have made the purchase of real estate, and then rent it out, providing a return on investment.

Spain is the 13th largest economy in the world. Hugo Bagration, head of business development at Berkshire Hathaway HomeServices in Marbella, believes that the state is confirming its status as a center of foreign investment in the real estate market.

Source: Uglobal

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