Golden Visa Scheme Spain


Changes to the golden visa scheme Spain announced

The Golden Visa scheme Spain is going to be withdrawn.

Where it relates to the purchase of a property.

Whilst there is a lot of press speculation that this will affect mortgages in Spain and Spanish purchases. The reality is a little different.

Very few Golden Visas have been granted based on purchase of a property above 500k. In total only some 5,000 or so.

Of those most are Russian or Chinese buyers.

Official Travel documents

Will changes affect the level of mortgages in Spain and purchases

The affect on Non resident Spanish mortgage numbers and property sales will therefore be negligible.

For a while it may in fact boost sales of high end property. As buyers rush to obtain the Golden Visa scheme Spain. Before legislation is passed.

Spanish loans and the golden visa scheme Spain

The scheme itself means that a minimum of 500k of your own personal funds must be put toward the purchase price. Taking a loan for any part of that 500k to qualify, is not possible. Neither can you include the costs of Spanish loan or purchase, in the 500k.

A mortgage in Spain can only be used if the property price is above 500k. Then only for the portion of the price that exceeds 500k.

Without a doubt Visa restrictions of only 90 days in every 180 days has affected the non resident Spanish mortgage market. Both for loans in Spain and sales. Where it relates to UK buyers. However bit by bit UK applicants for a mortgage in Spain re beginning to increase. As potential buyers have adjusted to the limitations.

January 2024 Spanish loan completions

The first month of 2024 showed a significant increase over December of 2023. In terms of number of new Spanish mortgages. Also capital lent.

However against January of 2023 there was a decrease across the board.

In total 33,128 new Spanish loans were constituted. This was up 32.9% on December 2023. However down 10.3% of January the previous year.

4.576.584 million euros were lent. Up 30.7% on December but down 12.7% on January 2023.

The average loan size fell both month on month and year to date. In January 2024 it was 138.149.

Latest Interest rate data for loans in Spain

The 12 month Euribor, after stabilising has increased marginally in last couple of months. For reviews and completions April it stands at 3.718%. This could be due to a belief that the ECB will not decrease the base rate as quickly as anticipated.

For the month of January Spanish mortgages had an average interest rate of 3.46%, over 24 years. The average variable rate was 3.24%. The average fixed rate 3.64%. How either are calculated remains a mystery as the Euribor itself was above the total average rate.

Fixed rate loans in Spain made up 58.2% of all new completions. Variable rates 41.8%.

In January 2023 the average rate was 2.64% so there is a significant increase in rates across the last 12 months.

Madrid leads the pack for new borrowing in Spain

Across the key regions the level of mortgages in Spain was down. Only Madrid saw a significant increase .Plus 13.2%.

Murcia was down 18.2%. Andalucía down 20.5%. Cataluña saw a fall of 14.1%. The Islands Balearics and Canaries fell 13.1% and 14.68% respectively.

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