Spain’s golden visa is likely to move into the spotlight after Portugal made some unpopular changes to its golden visa program.
From January 2022, buying a home will help investors qualify for Portugal’s golden visa only if the property is located in the Madeira, Azores islands, or the interiors of the country. Buying a home in Lisbon or Porto will no longer help investors qualify.
This is a major change for two reasons. One, restrictions on real estate investment is always a big negative for golden visa investors. Two, bulk of the real estate golden visa investments in Portugal was concentrated in Lisbon and Porto.
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Real Estate: Preferred Option for Golden Visa Investors
Barring a few exceptions like the US and Australia, qualifying for PR or citizenship by buying property is a common feature of investment immigration programs across the world.
Investors love this option because the property serves as a second home in a foreign country, an investment, and a safe and simple way to qualify for fast-track permanent residence.
For countries, flow of foreign capital into real estate leads to infrastructure development, boosts demand across multiple sectors including construction and tourism, and generates good returns for existing investors.
Spain Likely Beneficiary of Portugal’s New Rules
Australia witnessed a sharp decline in demand for its Significant Investor Visa after it excluded residential real estate as an eligible asset class. However, the absence of alternate investment immigration destinations in the region meant investors had no choice but to play by Australia’s rules.
However, Portugal’s case is different because investors have multiple alternatives including Spain’s golden visa program. Like Portugal, Spanish PR offers unrestricted access to the EU and acquiring citizenship will make the investor a citizen of the European Union.
Like Portugal, Spain offers multiple investment options for those seeking fast-track permanent residence. Options include-
- €2 million in government bonds or public debt,
- €1 million capital investment in Spanish companies,
- €1 million in investment funds including venture capital funds in Spain,
- €1 million bank deposit in Spain.
- €500,000 in real estate in Spain,
- Investment in a business project leading to job creation, socio-economic benefits, or leading to scientific or technological innovation.
The €500,000 real estate option is the same as Portugal’s golden visa but without any restrictions on where investors can buy the property. This means buying a home in Madrid is enough for an investor to qualify.
While the Greek program has a lower investment requirement, Spain’s robust and stable economy may be preferred by investors seeking a balance of good returns and protection of wealth.
Spain weathered the 2008 economic crisis better than Greece, which means the Spanish program will be preferred by investors seeking to navigate the economic uncertainty caused by the pandemic and ongoing geopolitical tensions.
So, for investors, professionals, and entrepreneurs alike, Spain is likely to serve as a good golden visa destination that has no restrictions on where applicants can invest in real estate to qualify for permanent residence.