Express Way to Obtain Golden Visa Through Real Estate Before Its Elimination

On April 9, 2024, Spain’s President, Pedro Sanchez, revealed plans to repeal the rule that grants ‘golden visas’ to foreigners in exchange for real estate investments. This announcement has generated considerable concern and uncertainty among foreign investors, particularly with the proposed amendment to Article 63.2(b) of Law 14/2013.

Government’s Silence and the Role of Legal Professionals

The lack of transparency from the central government has left many investors feeling unsettled. It is now crucial for legal professionals to step in and provide reassurance to clients, investors, and entrepreneurs amid this absence of official clarification.

Shedding Light on the Situation

  • New Applications: While new applications are generally expected to proceed as usual, some consulates have requested additional documentation or have even paused their activities. For example, the UGE briefly displayed an ‘out of service’ notice on their website.
  • Applications in Process: These should continue to progress normally, as the government’s announcement does not indicate an immediate repeal of the current law.
  • Effective Date of Changes: The exact date for eliminating the real estate investment option for Golden Visas remains uncertain, but it is anticipated to occur sooner rather than later, possibly on the 21st of October 2024.
  • Acquired Rights Protect Residency: In our opinion, the rights to renewal and obtaining citizenship for those who have already applied for residency through investment in the past will not be affected, as they can be considered acquired rights.

Alternative Pathways for Investors

Given the current uncertainty, many investors are exploring other options. If you do not wish to purchase another property, you can consider alternative investment routes under Law 14/2013 to obtain a Golden Visa. These include investments in listed shares, social participations, investment funds, and bank deposits. Another option for those who wish to reside in Spain without working is the Non-Lucrative Visa.

Expected Timeline and Actions for the Elimination of Real Estate Golden Visas

  1. Before 21 October (Real Estate Option): Real Estate investment is still active and can be expedited through (1) signing a deposit contract and (2) depositing at least €500,000 in a Spanish bank account.
  2. After 21 October (Other Options): Other investment options include:
    • Capital Investment: Investing at least €1 million in Spanish bank deposits, shares, or investment funds.
    • Business Project: Creating a business project in Spain that generates employment, has a significant socio-economic impact, or contributes to scientific/technological innovation.
    • Government Bonds: Investing €2 million in Spanish government bonds.

Timeframe for Express Process before October 21st

  1. Stage 1: NIE Application
    • Timeframe: Approximately 1 week from receiving POA and passport.
  2. Stage 2: Golden Visa Application with Only the Arras:
    • Documents:
      1. Reservation Agreement (Arras): Preliminary contract showing the intent to purchase the property.
      2. Proof of Deposit: Proof of the deposit of at least €500,000 in a Spanish bank account.
      3. Passport: Complete copy of a valid passport.
      4. NIE (Foreigner Identification Number): Required for all legal transactions in Spain.
      5. Visa Application Form: Completed and signed.
      6. Medical Insurance: Valid health coverage in Spain.
      7. Proof of Financial Means: Documents demonstrating sufficient economic resources to live in Spain.
      8. Police Clearance Certificate: Issued by the country of residence.
    • Submission: These documents should be submitted to the relevant Spanish consulate or embassy.
    • Timeframe: 20 days from submission.
  3. Stage 3: Investment Completion
    • Documents: Notary purchase deeds.
    • Timeframe: Variable depending on agreements between seller and buyer.
  4. Stage 4: Visa Application
    • Documents:
      1. Visa Application Form.
      2. Notary Deed.

Stay informed, act decisively, and explore all available avenues to safeguard your investment and residency in Spain.

For further information on this matter, please feel free to contact us.

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