Spanish Golden Visa Ends, Spain's Charm Remains: Here's How

On April 9th, the Council of Ministers announced that Spain’s Golden Visa program would no longer be available. However, this development won't bring any obligation on future real estate purchases by foreign investors. Foreign property buyers still have alternative residency programs such as Non-Lucrative Visa or Digital Nomad Visa. You can take a look at our blog page to learn more about residency in Spain.

The Golden Visa is a program that enables non-EU citizens to get residency in Spain by investment. For a decade, it allowed them to live and work in Spain. The program also gave them Spanish citizenship after 10 years. However, this program remained in the back seat, with a surprisingly low demand.

Since 2013, over 4.5 million real estate purchases have come into the record. According to an official Council of Ministers report, less than 15.000 gained a Golden Visa to its buyer. Moreover, in 2023, 583.042 property purchases occurred. Out of them, 87.365 involved foreign buyers, and only 3.272 were Golden-Visa-related.

Here is the number of recipients year by year, according to the report:

• 632 in 2020
• 997 in 2021
• 2.017 in 2022
• 3.272 in 2023
• 426 until February 2024

Despite the announcement was made to finalize the Golden Visa program, the date of its legal termination has not yet been publicized. Buyers who want to benefit from the Golden Visa program can still take advantage if they act quickly, and proceed with the supervision of experienced consultants.

Even though the number increased each year, the Golden Visa clearly wasn’t a priority for buyers. Experts agree that buyers mainly seek a peaceful life and a good investment, both of which are available in Spain. Let’s take a deeper dive and explore Spain's offerings.

Reasons to Invest in Spain’s Real Estate Market in 2024

Here are the reasons investors choose to buy properties in Spain.

1. Life Quality

Spain is safe, calm, and vibrant, all at once.

It has festivals, concerts, and museums. It offers a well-developed transportation network. Also, it is home to the happiest expat communities in the world. The locals are friendly, the weather is amazing, and the food is delicious.

Plus, the housing options are wide, which attracts property buyers from all continents. For example, You can choose a tranquil lifestyle in a small town and buy fully detached villas with amazing views. Or, you can immerse yourself in modern life in a large complex with rich amenities and buy apartments.

2. Work-Life Balance

In the 21st century, it is essential to keep a work-life balance. Spain, well aware of this fact, established the Digital Nomad Visa system. If you can bring your work to any continent, this visa is what you need.

Spain has an outstanding work-life balance, making it a favored destination among digital nomads. It has seafront co-working spaces and cafes to spend your working hours. After clocking out, you can enjoy water and nature sports, play golf, hike, and explore restaurants. If this sounds interesting, see the Spanish Digital Nomad Visa, which is a gorgeous alternative to Golden Visa.

3. Economic Climate

With the interest rates (2.75%) and growing GDP (2.6%), Spain keeps attracting real estate investors in 2024. Here, it is possible to create a dream life on a budget. Both housing prices and monthly costs are below the European average.

According to the official EU website, Spain holds 8.3% of the EU’s total GDP. Its economy relies mainly on tourism, holding an attractive 12% GDP share.

Logistics hold an important role in Spain’s economy as well. Spain ranks second (after Poland) in the EU for international activities. The decrease in unemployment (12.1%) is another motive for expats’ arrival. All and all, the economic landscape creates good faith for investors.

4. Tourism Landscape

Spain is a true Mediterranean haven, offering sunny days, lush greenery, long coastlines, and a vibrant daily life. As an outcome, it attracts holidaymakers around the world. In 2023, the country received over 85 million visitors. This number exceeded forecasts and doesn’t seem to drop anytime soon.

The tourism landscape convinces a striking number of annual buyers for properties in Spain. Some of them want to buy a holiday home for sale in Spain. Some, on the other hand, want a holiday-like lifestyle. Both of these goals bring fruitful results.

Buying a property for sale in Spain brings flexibility to your holidays. Plus, you can benefit from rental income and ROI rates. As a result, you will not only have a Mediterranean holiday home but also make money out of it.

5. High ROI and Rental Yield

Spanish properties featured a 4.33% value gain in the last year. Currently, the country offers a 7.65% rental yield. Moreover, it featured a 7.3% ROI rate in the first quarter of 2024.

Taking smart steps does help your property investment in Spain to bring lucrative results. These smart steps involve buying the right property at the right time and right location. Following this rule ensures higher returns. Also, there are ways to access more quick and fruitful returns, like rental activities.

Letting your home in Spain is a good investment method. Short and long-term rentals bring Euro-based profits. Note that Spanish housing law requires an IVA (VAT) application for long or short-term rental activities. You must apply to the Tourism Registry for rentals of less than 3 months.

Is Spain still a good place to buy property?

Yes! Spain never relied on the Golden Visa to attract investors. Its allure lies in natural beauty, climate, and colorful atmosphere. As a result, the demand for Spanish properties is not likely to drop after this.

The decision marks the government's shift in perception. It aims to prioritize citizens’ housing needs and increase transparency. They also created 188,000 new jobs in the construction sector to meet the demand.

Spain's future seems promising. The economy is growing, and the government is taking smart steps to ensure future prosperity. It is investing in being a top sustainable living destination along with education and citizen’s economic relief. As a result, Spain doesn't seem to lose popularity.

Looking to make an investment in Spain?

Investment with TEKCE brings exclusive opportunities. Our agents will find the best properties for you, according to your needs, wishes, and budget. No matter what your goals are, we guarantee fruitful returns and a smooth buying process.

Let our team of experts guide you through every step of the way. Call us now and secure your spot in Spain's real estate market!

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