Spanish Golden Visa Withdrawal Will Have Minimal Impact

ACN Barcelona - The real estate sector questions the validity of golden visas for housing purchases, noting that the impact of their elimination on the market will be “small.” Real estate companies assert that golden visas have been a primary reason for foreign investment in Catalonia. However, they acknowledge increased interest since the Spanish government announced plans to eliminate them in April. According to Catalan News, some in the sector find it “difficult” for companies to make a “fundamental change” in property availability, stating that the measure “will not be the magic solution” to the housing crisis.

On April 3rd, the 'golden visa' for housing purchases will end. The Spanish government argues that this measure addresses a “very specific” issue in areas where finding property is “nearly impossible,” directly affecting Catalonia. “It just has an impact on the headlines,” says the API

Carles Sala, the institutional director of the API's legal department, doubts the measure's real impact on the housing market. “It just has an impact on the headlines,” he states.

Sala confirms that golden visas have generated “a lot of interest” recently, with some foreigners willing to pay 500,000 to obtain a visa, even if the property's value is lower.

Raise the minimum to a million euros

Christoph Toelle, managing partner of Sotheby's International Realty Barcelona & Costa Brava, suggests raising the minimum limit to one million euros instead of eliminating the golden visa. This would reduce “competition” in the “mid-range” housing market and allow wealthier foreigners to remain in the State “without many issues.”

The real estate company, specializing in properties over 800,000 euros, finds it “difficult” for the golden visa to increase housing availability, noting that the percentage of transactions using this method is “small.” They also state that the “main reason” foreigners come is not for residency but for the “freedom” of the EU. “Ultimately, the golden visa makes life easier for our clients,” they say.

The golden visa reached record numbers following its withdrawal announcement. Between November 2024 and November 2024, 314 residence permits will be granted to foreigners for buying homes over 500,000 euros in Catalonia, marking the highest increase since 2020. According to the Ministry of Foreign Affairs, over 300 visas will be issued to Chinese citizens, followed by Iranians, North Americans, and British nationals.