The day after the end of the Golden Visa: what now?
The Official State Gazette (BOE) recently published the law that puts an end to the so-called Golden Visa from April, a decision of the Spanish government that has generated a barrage of criticism in the real estate and business sector and that leaves a significant path of uncertainty in the short term.
The measure, which eliminates the granting of residency to foreigners who invest more than 500,000 euros in real estate, threatens to curb the arrival of large investors and is a direct blow to the economy of especially coastal cities, and in the Mediterranean (including the Balearic Islands), where this type of buyer has been key.
Sources in the sector point out that the problem is not that they are clients of half a million, but clients of four, five and even ten million euros. They are investors who not only buy properties, but also generate employment, boost the economy and attract more wealth.
And the fact is that the data support this. As the vice-president of DEXTERAlfonso Merlos, "In recent years, the Golden Visa has made it possible to attract investors with high purchasing power from half the world, not only Europeans but also from North and South America, to Madrid, Andalusia and the Balearic Islands, but also to other enclaves such as the Valencian Community or the Canary Islands themselves. The door is now open to these buyers to explore other Mediterranean markets, such as Portugal, and stop contributing their wealth to that of Spain"..
Over the last five years, DEXTER has led the alternative private equity financing sector, to a large extent, serving the needs of foreign developers and builders, but also, to a large extent, providing liquidity to international entrepreneurs who have opted for one of the most sought-after products: the bridge loan with mortgage guarantee.
