Spain ends ‘Golden Visa’ to curb property speculation
The property market (real estate market) may experience new changes. The elimination of the Golden Visa may mean a drop in purchases by English and Swedes in Spain. And a drop in housing prices due to great demand from foreign buyers. Or much worse. Stagnation of the real estate market.
The Golden Visa in Spain is a type of visa that is granted to foreign investors who make a significant investment in Spain. This visa program allows non-European Union citizens to legally reside in Spain in exchange for a minimum investment in certain sectors of the Spanish economy, such as real estate, business projects or investment funds.
To obtain the Golden Visa in Spain, it is necessary to meet certain requirements, such as investing at least 500,000 euros in real estate, creating a business project that generates employment in the country or making an investment in Spanish investment funds for a value of at least 1 million euros.
Once the Golden Visa is granted, the holder can legally reside in Spain for an initial period of one year, and then renew the visa for additional periods of two years. In addition, the visa allows free movement through the Schengen area, making travel through Europe easier.
The Golden Visa in Spain is an attractive way for foreign investors to obtain legal residency in the country in exchange for making a significant investment in the Spanish economy.
Golden Visa = Real estate speculation
This program “supposedly” benefited real estate speculation because it incentivized foreign investors to buy properties in Spain with the sole objective of obtaining residency, without necessarily having the intention of residing in the country or contributing to the local economy in a significant way. This drove demand for property and could increase prices, which in turn could make housing more difficult for local residents to access.
Furthermore, the Golden visa program in Spain did not require a commitment to stay in the country from investors, which meant that they could purchase property and obtain residency without actually having to reside in Spain, which could contribute to the speculation and rising prices in the real estate market.
Golden Visa Costa del Sol
The elimination of the Golden visa for investments and individuals on the Costa del Sol could have several negative effects on the economy and real estate sector in the region. Its results are yet to be determined.
Firstly, the Golden visa has been an important incentive to attract foreign investors to the Costa del Sol, which has contributed to the growth of the real estate and tourism market in the region. The elimination of this program could reduce the amount of foreign investment in the area, which in turn could negatively impact economic activity and job creation on the Costa del Sol.
The Golden visa has been a tool to attract high-net-worth individuals who buy luxury properties in the region, which has contributed to the development of a high-end real estate market on the Costa del Sol. Without the Golden visa, it is possible demand for luxury properties in the region will reduce, which could affect house prices and the profitability of real estate projects.
Golden Visa Nerja
The market in Nerja could lead to a drop in property prices. The elimination of the Golden visa for investments and individuals on the Costa del Sol could have a negative impact on the economy and real estate sector in the region, reducing foreign investment and demand for luxury properties in the area. But also making the market cheaper so that local people can invest in properties.
