5 Reasons Why You Should Get The Spain Golden Visa Today

The investment migration industry is in a state of constant flux. This rapidly changing environment may seem hard to follow from the outside, but for those involved in the industry, it is seen as a positive one since it opens doors of opportunity.

One of those opportunities at the moment is the Spanish Golden Visa, a highly popular EU residency by investment program that may change soon, meaning that investors who want to take advantage of all the benefits it currently offers should act quickly.

Why you should get the Spain Golden Visa today is the central theme of this article where we unpack the specifics of this program. In this piece, Savory & Partners will detail the reasons why now is the opportune moment to apply for the Spanish Golden Visa.

Why Choose Spain to Get a Spanish Golden Visa?

Spain is a country that offers a perfect blend of culture, history, and modern amenities. With its stunning beaches, vibrant cities, and world-class healthcare system, it's no surprise that Spain has become a top destination for investors and families looking to secure their future.

Spain's healthcare system is among the best in the world, ranking 7th globally according to the World Health Organisation. With a Spanish Golden Visa, investors and their families will have access to this top-tier healthcare system, ensuring that they can receive the care they need, no matter what the future may hold.

But Spain isn't just a beautiful place to live – it's also a smart investment. The country's economy is on the rise, with a growing tech sector and a thriving real estate market. By investing in Spain, investors can secure their future and position themselves to benefit from the country's continued growth and success.

Spanish Golden Visa benefits

Spain's Golden Visa provides investors with endless benefits, such as:

• Freedom to live, work, and study anywhere in Spain
• Visa-free travel throughout the Schengen Area
• Pathway to permanent residency after five years
• Eligibility for Spanish citizenship after ten years
• Opportunity to diversify assets in a stable, growing economy
• Attractive investment opportunities in Spanish real estate market
• Streamlined and efficient application process
• Accessible investment threshold of €500,000 in real estate

5 Reasons It is an Opportune Moment to Obtain Spain's Golden Visa Now

For investors in the Philippines, the key to unlocking the full potential of an investment migration program is the right timing. With Spain currently offering unmatched benefits and opportunities, there has never been a more crucial moment for Filipino investors to seize this opportunity.

There are a multitude of reasons that make this moment the best one to apply for a Spanish Golden Visa, such as:

1. Spain's government is discussing scrapping the real estate option

Spain's Golden Visa has four different investment options, with one particularly favoured among investors:

• €500,000 in real estate (on the open market)
• €1 million investment in company shares
• €1 million deposited with a Spanish bank or other financial institution
• €2 million in government bonds

The real estate option, due to its lower price point and the nature of its asset class, is the most popular among Golden Visa applicants, however, there is some chatter regarding this specific investment option.

Some parties in Spain's Parliament are pushing the government to shut down the real estate option in the Golden Visa (minor voices also want to shut down the program entirely).

As we've seen in Portugal and Greece, discussions like these can quickly snowball and turn into reality given the right environment and each political wing's specific goals.

While Spanish law making tends to take its time, these proposals have been around for about half a year, and this could quickly transform from chatter to real discussions and eventually decisions.

This means that investors who want to get an EU residency permit through a real estate option need to act quickly, especially since Spain's government may opt to adopt a new law without granting any grace period, a matter which is in the realm of possibility.

2. Favourable exchange rates

With the current exchange rates, your investment will go further in Spain than ever before. This means that investors can secure their Golden Visa with a lower investment than they might have needed in the past.

The Euro has still not reached its post-pandemic (or even directly pre-pandemic) heights, meaning that investors who deal in more stable currencies or growing ones (USD, GBP, for example) can get better value for their money at the moment.

3. Increased global uncertainty

Increased global uncertainty is a defining characteristic of the contemporary world, with a confluence of factors contributing to a pervasive sense of instability and unpredictability.

Political upheavals, economic fluctuations, and the profound and ongoing impact of the COVID-19 pandemic have collectively underscored the challenges inherent in planning for the future with a high degree of confidence.

Against this backdrop of uncertainty, the Spanish Golden Visa program offers a compelling proposition, providing investors and their families with a robust sense of stability and security.

The acquisition of a Golden Visa confers the right to live, work, and travel freely throughout the European Union, irrespective of the challenges that may emerge in the years to come.

The COVID-19 pandemic has starkly illustrated the potential ramifications of global mobility disruptions. Border closures and rapidly evolving travel restrictions have left many individuals and families stranded, unable to return to their countries of origin or relocate to new destinations.

The Spanish Golden Visa, however, mitigates these risks, ensuring the flexibility to move freely within the EU even in the face of unanticipated circumstances.

The benefits of the Golden Visa extend beyond enhanced mobility, offering investors the opportunity to diversify their assets and mitigate exposure to risk.

In an era characterised by currency fluctuations and economic turbulence, allocating a portion of one's wealth to a stable, growing economy such as Spain's can provide a valuable hedge against uncertainty.

4. Increased taxation

Governments are increasingly raising taxes to offset economic strain. There is also a growing trend geared toward taxing the wealthy, especially in countries like the US, India, and the UK.

From a financial perspective, the Spanish Golden Visa program presents several compelling benefits. Spain boasts a stable and growing economy, offering investors the opportunity to diversify their assets and potentially achieve attractive returns.

The country's real estate market, in particular, has demonstrated consistent growth and resilience, making it an appealing target for diversification.

Spain also offers a highly favourable tax regime for foreign investors, with the potential for significant tax savings under the so-called "Beckham Law."

This legislation, named after the famous footballer David Beckham, allows qualifying individuals to pay a flat income tax rate of 24% on Spanish-sourced income and capital gains for their first six years of residence. This compares favourably to the standard progressive tax rates, which can reach as high as 45%.

5. Opportunistic market

The Spanish real estate market presents a compelling investment opportunity in 2024. With robust house price growth, attractive rental yields, and a gradually improving construction sector, Spain's property market is poised for further growth and stability.

One of the key reasons to invest in Spanish real estate is the continued increase in house prices. According to Idealista, nationwide house prices rose by an impressive 7% (3.68% inflation-adjusted) in Q1 2024 compared to the previous year.

This follows a full-year growth of 8.16% (4.9% inflation-adjusted) in 2023.
The Bank of Spain also reported a 5.32% increase in house prices to €1,842 per square meter in 2023, with a quarterly rise of 1.65% (1.28% inflation-adjusted) in Q4 2023.

Although property demand has weakened recently, with home sales falling by 9.9% to 586,037 units in 2023, the market remains resilient. Residential construction activity is showing signs of improvement, with housing starts increasing by 1.1% year-on-year to 98,040 units in 2023 and completions rising slightly by 0.7% to 80,473 units.

Another compelling reason to invest in Spanish real estate is the attractive rental yields. Gross rental yields on property in Spain stood at 6.17% in Q1 2024, up from 6.09% in Q3 2023.

The time is now

The Spanish Golden Visa program presents a compelling opportunity for investors seeking to enhance their global mobility, secure their financial future, and enjoy an exceptional quality of life.

With its many benefits, including tax advantages, access to world-class healthcare, and the expert support of Savory & Partners, the program is an optimal choice for those looking to navigate the challenges and opportunities of an uncertain world.

Your turn

To learn more, contact Savory & Partners to book a comprehensive consultation with one of our experts.