The topic of buying property has been heating up in the forums lately, especially with all the rumors about the ‘Golden Visa.’ I’ve been following the news closely, and today I’m here to summarize the latest official information to help those of you who are watching and waiting.
The End of the Golden Visa: It’s Official
Yes, the news you’ve heard is true. Spain’s Prime Minister, Pedro Sánchez, has announced that the cabinet has approved a plan to eliminate the ‘Golden Visa’ program obtained through real estate investment. This means that spending €500,000 on a property will no longer be a fast track to Spanish residency! This policy, in place since 2013, has certainly attracted many investors, but the government now believes it has inflated housing prices in major cities like Madrid and Barcelona, leading to the decision to end it.
So, Can We Still Buy Property?
Absolutely! Canceling the Golden Visa ≠ Banning foreigners from buying property! It’s crucial to understand this distinction. The process and legal regulations for purchasing property remain exactly the same. The only change is that the route to gaining residency through property purchase is now closed. However, there are still many other ways to move to Spain, such as the non-lucrative visa, which just have different requirements for applicants. Therefore, the focus of buying property in Spain is shifting back to its original purpose—for living or investment, rather than as a bonus to get a residency permit.
When it comes to buying a home, we have to talk about taxes. This aspect remains stable, but it’s something you should be aware of when house-hunting. Simply put, the taxes for new-builds and resale properties are different. I’ve made a simple table to help you understand:
| Property Type | Main Tax | Tax Rate |
|---|
| New-build Property | VAT (IVA) | 10% nationwide |
| Resale Property | Property Transfer Tax (ITP) | Varies by region, typically between 6% - 10% |
PS: Besides these two main taxes, there are also stamp duty, notary fees, and registration fees, so make sure to budget accordingly.
This policy change for buying property in Spain primarily affects investors who were looking for a shortcut to residency. For those who genuinely love Spain and want to build a life here, the impact is not that significant. You can still buy property, and life goes on. It just means that when planning, you’ll need to consider ‘buying a home’ and ‘obtaining residency’ as two separate goals. What are your thoughts on this policy change? Is anyone currently house-hunting? Feel free to leave a comment below and join the discussion!
