Please see below the latest financial update from Blevins Franks
Please do not hesitate to contact Paul should you have any questions related to this or other financial matters.
Spain golden visa abolished
How does this impact UK nationals?
By Paul Montague, Partner, Blevins Franks
928 433 411 | canaryisles@blevinsfranks.com | www.blevinsfranks.com
The Spanish government has voted to end Spain’s golden visa. When the amended law comes into force on 3 April 2025, non-EU nationals can no longer obtain residency and freedom of movement in Spain simply by buying high-value property.
While this sounds like bad news for UK nationals who no longer have EU freedom of movement, other visa options are available if you intend to retire in Spain and live here most of the year. In fact, the non-lucrative visa approach is cheaper as you do not need to spend a set amount on a property and can choose to buy or rent whichever home you want.
Abolishment of Spain’s golden visa confirmed
On 2 January 2025, Spain’s Official State Gazette (BOE) published Organic Law 1/2025, confirming that the elimination of the Golden Visa programme will come into effect on 3 April 2025.
The Council of Ministers had first agreed to eliminate the golden visa in April 2024, and the Congress of Deputies approved the legislative amendments to abolish it in November. Although the Senate then vetoed the proposal, on 19 December 2024 the Spanish Congress officially approved the repeal of the Golden Visa programme, with 177 votes in favour to 170 votes against.
Articles 63, 64, 65, 66 and 67 of Law 14/2013, which provided the legal framework for the golden visa, have been removed.
Applications for the golden visa will still be accepted until 2 April 2025, so you still have a couple of months to apply.
The golden visa was launched by Prime Minister Mariano Rajoy in 2013 in the wake of the banking and property crisis, which hit Spain hard. However, the escalating housing crisis over recent years, driven by soaring property prices and restricted access for locals, has led to criticism of the programme. The government hopes that eliminating the golden visa will help
ease housing shortages and make homes affordable again for local residents. Spain has also been under pressure from the European Commission, which wants to clamp down on such residence schemes because of security concerns.
Existing golden visa holders and applicants
Since 2013, the golden visa has offered a flexible residence option for third-country nationals who can make a substantial capital investment in Spain. For some, the key attraction was being able to come and go as they pleased, with virtually no cap on how much time they could spend in or out of the country.
If you have already been granted a golden visa, you don’t need to worry. It will remain valid for the original term and can be renewed in accordance with the original provisions of the programme.
If you have already submitted an application or apply between now and the law being repealed in a couple of months, your application will continue to be processed under the regulations that were in place at the time of submission.
The most common way to qualify has been to purchase a property worth at least €500,000. Other pathways include buying shares in a company or making a deposit in a Spanish bank of at least €1 million, or investing in a new business that offers employment opportunities or significant local benefits.
Spain’s Non-Lucrative Visa option for retirees
The non-lucrative visa is the residence approach most retired UK nationals take since Brexit.
As explained on Spain’s Ministry of Foreign Affairs website, this is a “visa to reside in Spain without carrying out any gainful (work or professional) activity, provided that the applicant has sufficient and guaranteed means to live on.”
A key requirement for a successful application, therefore, is to provide proof of sufficient financial means to cover the expenses of residing in Spain or confirming that you have a regular source of income. If your monthly pension income does not reach the minimum, having sufficient deposits in a Spanish bank account may cover you.
You will also need suitable medical health insurance from an insurer in Spain, medical check records, and clean criminal records.
Your initial visa will last for one year, at which point you can renew it for two years. You will need to provide similar documentation again, including proof of funds. After five years you can apply for a permanent residency permit if you are eligible.
The non-lucrative visa does not provide the same level of flexibility as the golden visa in terms of how much time you can spend out of Spain each year. However, since a Spanish Supreme Court ruling in 2024, you no longer have to maintain tax residence in Spain to retain your non-lucrative visa. The court ruling clarified that temporary residency cannot be automatically revoked for absences beyond six months without a valid legal basis.
However, although the regulation was struck from the law, this does not prevent the government from updating the ‘core’ law in future to include restrictions. Note, too, that the other requirements for renewing a non-lucrative visa, such as financial stability and health insurance, were unaffected and continue to be enforceable.
Making the most of Spain
If you plan to move to Spain, you will need to adjust your financial affairs to suit your new situation. You will benefit from planning ahead before you become tax resident, to understand all the tax implications and make the most of opportunities to save tax by restructuring your affairs before you change residency.
Take advice from a cross-border tax and wealth management specialist who understands the residence and tax rules in Spain and the UK and the interaction between them. You may be surprised by how much tax a strategic and compliant financial plan could save you.
The tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; an individual should take personalised advice.
Blevins Franks Wealth Management Limited (BFWML) is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists. Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of trusts, retirement schemes and companies. This promotion has been approved and issued by BFWML.
You can find other financial advisory articles by visiting our website here
