2023-05-12 18:57:18
The government studies the possibility to delete the well-known system of ‘golden visa‘, which grants residence rights to foreigners who invest in real estate, as confirmed by Reuters. The system has been repeatedly criticized by the parties of the left, considering that influences the evolution of the prices of the living place in Spain, especially in coastal areas and large cities. Companies in the real estate sector minimize its effect, understanding that investments are mainly allocated to higher-priced homes or second-home areas.
The leader of Más País, Íñigo Errejón, assured this week that there is an agreement with the Ministry of Social Security to put an end to the ‘golden visa’ program. According to this system it is possible to directly obtain the residence permit by buying a home of more than 500,000 euros. Added to this is the possibility of obtaining Spanish nationality. This type of visa can also be obtained if more than two million have been invested in Spanish public debt or more than one million in shares of Spanish companies or deposits in national banks.
The government has not officially confirmed any plans to end the program. An official familiar with the talks told Reuters the deal has not yet been formalized as the parties’ proposals are still being analyzed.
The European Commission has urged EU countries to end programs that allow investors to obtain citizenship and tighten controls when issuing residence permits, describing them as a security risk and black money laundering.
Spain issued nearly 5,000 residence permits this way, with Chinese investors topping the list, government figures show.
The removal of the ‘golden visa’ could be a setback for some real estate of the country that operate in areas that are very sensitive to the demand of foreigners, such as the Mediterranean coast or the center of cities such as Barcelona or Madrid. The Balearic Islands has been one of the autonomous communities that has put the most pressure on the Government to take measures given the weight that foreigners have in the real estate market. The attempt to directly prohibit sales to foreigners ran into legal obstacles, but greater controls have been put in place on real estate agencies. In the case of the Balearic Islands, foreign buyers acquired more homes than ever in 2022: a total of 6,133, the highest number since the Association of Registrars handled this data, 10 years ago. This figure also represents 34.4% of the total sales registered on the islands, the second highest percentage since the 35.6% represented by the 3,784 purchases in 2015.
José María Basáñez, president of Tecnitasa and president of Atasa (Professional Association of Valuation Societies), calculates that the percentage of foreign buyers of homes in Spain “has been in recent years at an average of between 10% and 15%having closed 2022 with a figure of approximately 12%”. But in this case the averages mask the effect that the demand for foreigners may have in certain areas. Thus, according to the College of Registrars of Spain, the autonomous communities that registered a The largest purchase weight by foreigners during the fourth quarter of 2022 were the Balearic Islands (36.15%), the Valencian Community (28.47%), the Canary Islands (27.25%), the Region of Murcia (21.87%), Catalonia (15.58%) and Andalucía (14.70%).The provinces with the greatest weight in home purchases by foreigners during the fourth quarter were Alicante (42.94%), the Balearic Islands (36.15%), Málaga (34 05%), Santa Cruz de Tenerife (32.55%), Girona (31.12%), Las Palmas (22.15%) and Murcia (21.87%), but there may be areas in which practically all of owners are foreigners.
Although the large urban centers along the coast and beaches tend to be the main destinations From the searches for homes among foreigners, Idealista determines the 22 towns with less than 5,000 inhabitants where the interest in buying a house is greater from abroad than in Spain. These are Fuente Obejuna (Córdoba), where 77% of the visits received by the portal in recent months came from abroad; the Salamanca municipalities of Garcirrey (69%) and El Milano (66%); Cala Ratjada (63%), in Majorca; Laroya (61%), in Alemeria; Valle Gran Rey (57%), in La Gomera; Cómpeta (Málaga), also with 57% and Ciudad Quesada (55%), in Alicante. Also, Canillas de Albaida and Sayalonga (both in Malaga), with 54% of visits from foreigners looking for housing; Benitachell (Alicante), Cala Millor (Mallorca), Arboleas (Almería) and Cala Bona (Mallorca), with 53%; Sa Coma (Mallorca) and the La Gomera town of Alajero (Santa Cruz de Tenerife), with 52% of foreign searches, and Albanchez (Almería), Deya (Mallorca), Cala D’Or (Mallorca) and Lubrín (Almería), with 51% According to Idealista, Jete (Granada) and Portbou (Girona) are equally interested in buying a house by foreigners and nationals.
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