NAVIGATING UNCERTAINTY: The Future of Golden Visas in Spain
On April 9, 2024, Spain’s president, Pedro Sanchez, announced plans to repeal the rule governing ‘golden visas’, which grants residency to foreigners in exchange for significant investments in the country. This announcement has introduced significant concerns and uncertainties among foreign investors, particularly regarding the proposed amendment to Article 63.2(b) of Law 14/2013.
Government’s Silence and the Role of Legal Professionals
The central government's lack of transparency has left many investors feeling unsettled. It is now the responsibility of legal professionals to reassure clients, investors, and entrepreneurs amidst this absence of official clarification.
Shedding Light on the Situation
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New Applications: Although new applications are expected to proceed as usual, some consulates have been requesting additional documentation or even pausing activities. For instance, the UGE briefly displayed an 'out of service' notice on their website.
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Applications in Process: These should continue to progress normally, as the government's announcement does not signify an immediate repeal of the current law.
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Effective Date of Changes: The exact date for the elimination of the real estate investment option for Golden Visas remains uncertain, but it is anticipated to occur sooner rather than later.
Alternative Pathways for Investors
Given the current uncertainty, many investors are exploring alternative solutions. One such option is the Law 20/2022 of October 19, known as the "Grandchildren's Law" (Ley de nietos). This law allows those born outside of Spain to become citizens if their parents or grandparents are Spanish. Although the nationality requirements under this statute are disputed and ambiguous, the Ministry of Justice has issued an interpretive instruction to provide clarity.
Once clarified, this law will enable many foreign entrepreneurs to access the benefits of the Spanish market, from EU entry to business development in a favorable environment. It not only serves as a civil or immigration measure but also signals Spain's openness to foreign investment and its commitment to supporting those contributing to its economic growth.
Act Swiftly or Explore Other Investment Avenues
Those still interested should act promptly, as the law is set to expire on October 21, 2024, with no indication of an extension. Should time run out, remember that Law 14/2013 offers alternative investment routes to obtain a Golden Visa, including investments in listed shares, social participations, investment funds, and bank deposits.
Stay informed, act decisively, and explore all available avenues to safeguard your investment and residency in Spain.
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