Golden Visa Scheme Basis

The concession of golden visas in consideration of certain foreign investments was introduced by Sections 63 to 67 of the Law 14/2013, of September 27, on Support for the Entrepreneurs and their Internationalization. This concession was linked, as I say, to the realization of certain investments, either in public debt (2 million euros), company stock (1 million euros), investment funds (1 million euros) or bank deposits (1 million euros); in the acquisition  of real estate (500,000 euros onwards); or in the implementation of a business project accredited as being of general interest. The uninterrupted application of the Golden Visa for more than ten years has opened the doors of residence in Spain to nearly 15,000 non-EU investors (Russians, Chinese, Mexicans, Venezuelians, Colombians, Filipinos, Malaysians or Indonesians, among others) and attracted investments worth 5 billion euros.

 

Repeal of the Scheme

However, despite de obvious sucess of the Golden Visa Scheme, it has just been repealed, thus fulfilling the predictions that had been circulating on this subject for some time. A repeal that has therefore been, to paraphrase Gabriel García Márquez in one of his best-known novels, the chronicle of a death foretold. But in the end, the death of this scheme, as serious as it is, has been much more serious than expected, since it has not only affected the acquisition of real estate as was initially believed, but all types of investments, from investments in public debt and other financial assets to the implementation of a business project. All of them have been repealed as a result of an Organic Law approved by the Spanish Parliament on January 2, at the request of the Socialist Party and its government partner, Sumar, and published the following day in the Official State Gazette.

This Organic Law 1/2025, of January 2, on Measures regarding the Efficiency of the Public Justice Service, is a profuse, difuse and confusing law, the result of a poor legislative technique, which does not hesitate to mix, in a way that is not very rational and coherent, very diverse issues. Despite this, it takes the opportunity to address the repeal of the Scheme in its Twenty-First Final Provision, stating that the following Sections of Law 14/2013, precisely the one that had introduced this Scheme, are left without content: 63 ( Residence Visa for Investors), 64 (Form of Investment Accreditation), 65 (Effects of the Residence Visa for Investors), 66 ( Residence Authorization for Investors) and 67 (Duration of the Residence Permit for Investors). Being so, what have been the reasons that have led the current Spanish government to act in this way, in apparent contradiction with its constant call to attract foreign investments?.

Reasons for the Repeal

One of the most striking aspects of this Organic Law 1/2025, apart from the already mentioned deficient legislative technique, is that its Preamble does not justify a measure of such magnitude as the repeal of the Golden Visa Scheme. The function of preambles, as Luis María Díez-Picazo, Professor of Law and former Supreme Court Justice, pointed out not long ago, is to explain the political opportunity and the technical-legal features of the laws they accompany, but in the present case, curiously, the explanation of that political opportuntity and those technical-legal features is conspicous by its absence. This is all the more shocking since Law 14/2013, which it partially repeals, does justify in its Preamble the introduction of the Golden Visa Scheme, with the following arguments:

• A scheme is being launched which, for reasons of economic interest, the granting of visas and residence permits is facilitated and expedited, in order to attract investment and talent.
• This scheme is aimed at investors, entrepreneurs, workers who carry out intra-company movements, highly qualified professionals and researchers, as well as their spouses or husbands and adult children.
• The scheme will be channelled through a quick process before a single authority, and for a variable period depending on the different cases contemplated.

On the contrary, the Organic Law 1/2025, as I said, does not contain in its Preamble any explanation of the reasons that led to the adoption of such radical measure as the repeal of the Golden Visa Scheme in its entirety. If the introduction of the latter was due to reasons of economic interest, and its application was successful to the point of incorporating nearly 15,000 investors and attracting investments worth of 5 billion euros, what is the reason for this repeal?. Because the Spanish economy has already reached such a level of development that foreign investment and talent are no longer necessary? Because this investment and talent strain, burden or undermine the Spanish business or social fabric? Or simply because the introduction of this Scheme is due to a party of a different colour to that of the Socialist  and its goverment partner?.

 

Consequences for Foreign Investors

Yet, as a lesser evil, Paragraph Two of the Twenty-First Final Provision contains a First Transitional Provision, in relation to applications submitted by investors or relatives of investors prior to the entry into force of the Organic Law -which will take place next April, 3, 2025- providing that they will be approved in accordance with the regulations in force on the date of submission, that is. Law 14/2013. And Paragraph Three of this same Twenty-First Final Provision, in its turn, a Second Transitional Provision, as regards the renewal of visas and authorizations for the acquisition of real estate, stating that: a) Visas and authorizations that are valid at the the entry into force of this transitional provision will remain valid for the time for which they were issued; and b) In the event of applications for renewal, they will be processed and resolved in accordance with Law 14/2013.

 

Any Alternatives to Explore?

Despite the repeal of the Golden Visa Scheme, there are, however, other options for obtaining a residence visa, which I briefly summarize below. Firstly, the residence visa for self-employed  entrepreneurs, for which  a project of establishment or activity, among other key requirements, is needed. Secondly, the non-lucrative residence visa, for people who, with passive income, do not carry out a work activity. And thirdly, the residence visa for digital nomads (DNV), either for business owners, self-employed individuals  or employees who wish to reside in Spain while working remot outside Spain.  Each option has its own characteristics and  advantages, so before making a decision it is advisable to obtain a proper legal advice on the scope and content of every one in order to adjust them to the real needs of the potential inversor.

Antonio Viñal
Lawyer
AVCO Legal
madrid@avco.legal