Farewell to the Golden Visa: Key Changes to the Entrepreneurs’ Law Starting in April 2025
14 Enero, 2025
On January 3, 2025, the Official State Gazette published Organic Law 1/2025, which amends Law 14/2013, of September 27, on support for entrepreneurs and their internationalization. Specifically, it removes the content of Articles 63, 64, 65, 66, and 67, thereby eliminating what is commonly known as the “Golden Visa” or residence by investment.
This change means that,** as of April 4, 2025**, no new applications for this residence permit will be accepted, marking a turning point in the country’s immigration policy. However, applications submitted before this date will continue to be processed under the current regulations, and those who already hold a Golden Visa may renew it without difficulty, provided they maintain the investment and fulfill the applicable requirements.
Why has the Golden Visa been so significant?
This residence permit has been one of the most popular among foreign investors due to the advantages it offers. It allows individuals to reside in Spain without the need for a minimum period of stay in the country, making it ideal for those with business or interests in multiple locations. Additionally, it grants access to the entire Schengen Area, facilitating travel throughout Europe, and allows the inclusion of immediate family members in the application, such as spouses, minor or dependent children, and dependent ascendants. It also accommodates various objectives, ranging from acquiring a property for personal use to diversifying investments in the Spanish real estate market.
If you are considering taking advantage of the remaining time to apply for the Golden Visa, it is crucial to be aware of its requirements. According to the regulations, in addition to having made the investment, paying the relevant taxes, and registering the property in the Land Registry, the applicant must also meet the following conditions:
- Not be in Spain illegally at the time of application.
- Be over 18 years of age.
- Have no criminal record in Spain or in the countries where the applicant has resided during the past two years for offenses recognized under Spanish law. The applicant must also provide a sworn statement confirming no criminal record in the last five years.
- Not be listed as an inadmissible person in the territorial space of countries with which Spain has border-control agreements.
- Have a public or private health insurance policy contracted with an insurance company authorized to operate in Spain.
- Submit a medical certificate.
- Have sufficient financial resources for personal support during the stay in Spain, as well as for any family members included in the application.
- Pay the corresponding fees for processing the visa and the residence permit.
Moreover, if the applicant wishes to include family members, they must also meet the general requirements and may apply for their visas simultaneously with or subsequent to the principal applicant. Eligible family members include the spouse or registered domestic partner, minor children or adult children who are financially dependent on the holder, and ascendants who are in the holder’s care.
The initial residence permit is granted for three years, and if the investment conditions and other requirements remain in place, it may be renewed for successive five-year periods. After five consecutive years of residence, the holder may be eligible to apply for permanent residency in Spain.
Key Steps in the Real Estate Purchase Process
For those seeking to obtain the Golden Visa through property investment, the purchase of a property in Spain involves both the selection of the right property and an understanding of the legal process.
Legal Status of the Property
- The first step is to verify the legal status of the property. You can do this by requesting a nota simple (a short property report) from the Land Registry, which will confirm whether the property has any liens, encumbrances, or ownership issues. It is also important to negotiate an earnest money contract (contrato de arras) or reservation agreement with the seller. This document secures the transaction and sets the conditions of the sale. However, it is recommended to review it carefully, as it may include clauses that complicate the refund of your deposit should you decide not to proceed.
- Signing the Public Deed before a Notary: The next step is to sign the public deed before a notary. To do this, you must obtain a Foreign Identity Number (NIE) and have the necessary funds in a Spanish bank account, which will require planning any transfers from your home country. This process may take several days due to anti-money laundering checks. After the purchase, you will need to pay the corresponding taxes, such as the Property Transfer Tax (Impuesto sobre Transmisiones Patrimoniales) or VAT (IVA), depending on whether the property is new or second-hand.
- Mortgage Settlement (if applicable): If there is an existing mortgage on the property, it is common practice on the day of signing to present two checks: one to settle the outstanding debt with the bank and another to pay the seller. In such cases, it is advisable to avoid making advance payments to the seller to minimize unnecessary risks. Once the deed is signed before the notary, the final step is to register the property with the Land Registry, which may take several weeks.
Golden Visa Application
Once the real estate purchase process is complete, you can begin the Golden Visa application. This involves gathering a series of documents, including a valid passport, criminal record certificates, private health insurance, evidence of sufficient financial resources, the public deed of conveyance (duly registered), and proof of payment of the required taxes. It is essential that all of this documentation be officially translated into Spanish if it is in another language, and in some cases, an apostille may be required.
Given that the window for submitting new applications is limited, prompt action is recommended. Although the process may appear complex, specialized professionals can help you manage it efficiently and safely, protecting both your interests and your investment.
Do not hesitate to seek advice to secure one of the most favorable residence permits Spain has ever offered—a permit that will end in three months.
