Golden Visa Scheme Set to Expire in Spain
The Spanish ‘Golden Visa’ program, which offers residency to foreign investors purchasing property valued over 500,000 euros, is due to end on April 2. The impending termination of the scheme has triggered a flurry of last-minute property purchases by investors eager to secure their visa before the deadline.
Marbella’s ‘Golden Triangle’ a Hotspot for Luxury Buyers
The ‘Golden Triangle’ region, encompassing Marbella, Benahavís, and Estepona, has emerged as a preferred destination for high-end property buyers. Manuel Burgos, Vice-President of the DOM3 luxury housing association, attributes this to the region’s superior quality of life and infrastructure, rather than administrative incentives.
Increased Interest from US and Ukrainian Buyers
The past month has seen a surge in interest from buyers, particularly those of US and Ukrainian origin. Critics of the visa scheme’s cancellation argue that this uptick in last-minute purchases indicates potential negative repercussions for emerging markets like the US and Qatar, despite less than 1% of luxury buyers applying for the visa.
Impact on Spain’s Image as a Safe Investment Destination
While the luxury sector remains robust, with the Costa del Sol continuing to attract international investors and residents, real estate experts warn that the termination of the Golden Visa could tarnish Spain’s reputation as a secure and stable investment destination. Javier Neto, CEO of Pure Living Properties, expressed this concern.
Emerging Markets and the Potential Shift in Investment
Over 90% of luxury property purchases in Marbella, Benahavís, and Estepona are made by foreign investors. Real estate managers suggest that the cancellation of the Golden Visa could steer these investors towards more favourable markets, such as Greece or Italy. Neto noted the growing interest from US, Czech, and Polish investors, who may reconsider their commitment to Spain following the visa scheme’s termination.
Golden Visa Not a Barrier to Housing Access
Industry representatives argue that the Golden Visa is not a hindrance to housing access. Instead, they assert that the luxury property sector has been a significant economic driver for the Costa del Sol.
