Spain's 'Golden Visa' scheme bearing fruit

Spain’s ‘Golden Visa’ permits non-EU nationals to travel freely throughout the EU

Following a somewhat slow start when the scheme was initially launched in 2013, Spain’s ‘Golden Visa’ initiative has gained a bit of traction, accounting for €911 million in property investment up until the end of 2015. Aimed at helping bolster recovery following the real estate crash and economic crisis towards the end of the last decade, foreign buyers were originally slow on the uptake, but a steady flow of €500,000-plus investments have injected a welcome and sizeable chunk of change into the ever-improving Spanish economy…

Up until the end of last year, a total of 1,189 Golden Visas have been awarded to foreign investors for the purchase of property in Spain. The scheme, aimed at non-EU nationals for the purchase of luxury homes, was introduced in Spain following similar successful schemes in countries such as Portugal and Cyprus. Put simply, the idea of the Golden Visa is to award Spanish residency to non-EU investors who spend at least €500,000 on property in the country. With residency secured, these newfound home owners can travel freely throughout the EU Schengen Zone, a liberty previously made difficult through complicated visa application processes and bureaucratic red tape.

During the two year period in Spain, Russian and Chinese investors accounted for more than 65% of the property purchases, and not surprisingly, the Málaga region was one of the most favoured. Second behind only Barcelona (another popular coastal area), Málaga and the Costa del Sol accounted for 18% of all Golden Visa transactions. Russian investors – in the initial stages of the programme extremely flush with cash thanks to a strong economy – were responsible for more than 35% of purchases of luxury homes, accounting for €328 million into Spanish coffers. Hot on their heels were Chinese investors, who have spent €268 million on Spanish property since 2013. Also obtaining Golden Visas during this time were buyers from the Middle East, the Ukraine and Venezuela.

With its abundant sunshine, cosmopolitan mix of nationalities and plethora of luxury properties, the Costa del Sol is the ideal place for those looking to avail of Spain’s Golden Visa initiative. Consistently topping the charts as one of the world’s most favourite tourist destinations, it comes as no surprise that investors from around the globe – and not just from northern Europe – look to Spain’s southern coast when buying a home abroad.