First, it is crucial to understand that Spain's Golden Visa program is not entirely coming to an end. The goal of eliminating the Golden Visa program's real estate investment option, according to Spanish Prime Minister Pedro Sánchez, is to transform housing from a speculative activity into a fundamental right.
This statement reminds me of Portugal, which previously experienced a similar policy transition. This suggests that the program will continue to explore other investment options even as it shifts away from the real estate industry.
What Are The Reasons After This Decision?
Since its inception in 2013, the Spain Golden Visa Program has increased foreign investment. Spain's economy has benefited from this, and people from all cultures have been accepted.
The program provided applicants and their families with important advantages. These included freedom of movement, flexible business possibilities, and visa-free travel inside the Schengen Area.
Critics claim that the scheme increased local people' housing costs. The government's decision to eliminate the real estate investment option from the program was largely influenced by these worries.
What Are The Effects of Program Change on Spain’s Real Estate?
This judgment will have a significant impact on many potential investors who believed that Spain's Golden Visa program was the best way to gain residency in the EU and begin a life there. The sudden announcement of the policy change in early 2024 has made investors reevaluate their options and highlighted a major shift in the global real estate market and the concept of investment-based immigration in general. Even while Golden Visa programs often offer a range of investment opportunities, which could affect real estate values, real estate investment remains the most popular option.
According to real estate experts, Spain only receives roughly 2,000 applications annually a small quantity in a nation of 48 million people and the property market is unaffected by this number alone.
Global Alternatives to Spain’s Golden Visa
Greece: The Only Remaining Program for Property Investors Seeking a Golden Visa
The United States citizens are increasingly focusing on Greece. It is among the most welcoming Golden Visa locations. Interest is probably going to rise after Spain shuts its doors. Greece will become a desirable location for early investment as a result. Greece's Golden Visa program offers one of the fastest residency procedures in Europe.
It used to only cost €250,000 to become a resident, which was one of the lowest amounts in Europe. That sum has now increased. The fact that holders of the Greece Golden Visa are not required to reside in Greece permanently is a significant benefit.
Italy: A Swift and Strategic Golden Visa Alternative in the EU
Through a variety of investment opportunities, Italy grants residency to non-EU investors. Unlike many other European nations, it does not, however, offer real estate investment as a direct option. The nation's distinct advantages and many investment avenues make it stand out.
Among European Golden Visa programs, Italy is unique. It accepts as a legitimate option government-approved investments in creative companies. This program concentrates on industries that promote economic growth, whereas many European initiatives target financial and real estate assets.
Portugal: A Strategic “Plan B” for Gaining EU Citizenship
Portugal is no longer a viable place to invest in real estate. It still offers a compelling Golden Visa program, though. This program makes it possible to invest money without having to be physically present. By fulfilling the five-year minimum stay and investment requirements, applicants can get Portuguese citizenship.
The Golden Visa scheme is now even more alluring due to Portugal's 2024 citizenship law overhaul. After five years, holders of Golden Visas are now eligible to petition for citizenship. The waiting time begins on the day they submit their first application for residency. They do not have to wait for permission. As a result, fund investments are currently the most often used method of program investment.
According to a study that was published in the Journal of Ethnic and Migration Studies, the Golden Visa program accounted for 14.4% of Portugal's foreign investments between 2013 and 2019. This percentage was 12.2% in Latvia and more than 7% in Greece during the same time frame.
This article is sourced from getgoldenvisa.com