DOM3 Expresses Regret Over Government's Decision to Abolish Golden Visa, Calls for Fiscal Measures to Ensure Activity in a Key Sector on the Costa del Sol

High-end housing entrepreneurs on the Costa del Sol, grouped under DOM3, have voiced their regret over the Central Government's decision to do away with the Golden Visa. This fiscal incentive, enacted in 2013, enables non-European Union foreigners investing more than €500,000 in real estate to obtain Spanish residency.

The province of Malaga, particularly the Golden Triangle (Marbella, Estepona, and Benahavís), stands out as one of the nation's leading destinations for foreign investment, alongside other regions like Barcelona, Madrid, Palma de Mallorca, and Valencia.

"It's disheartening news for foreign investment and, more specifically, for residential tourism, a strategic sector in the province of Malaga. It has emerged as a primary source of employment and wealth, while also helping to mitigate seasonality," states Javier Pérez de Vargas, a solicitor specialising in real estate and associate of DOM3.

In this context, DOM3 has called for the implementation of alternative fiscal measures to ensure the ongoing vitality of an industry that has become the mainstay of the Costa del Sol. Indeed, the more than 40 companies affiliated with DOM3 provide direct, quality employment to over 2,500 individuals, in addition to generating an indirect employment volume exceeding 5,000 positions.

"We must make it clear that the impact of this measure will be relative because less than 1% of foreigners investing in the Costa del Sol's residential market have obtained the Golden Visa over these 11 years. Nevertheless, this decision will have a negative impact on the country as a whole, diminishing its appeal as a residential destination in the international market," highlighted Charly Simon, president of DOM3.

Since the introduction of this policy, China has received the highest number of visas at 2,712, followed by Russia with 1,159, and Iraq with 203. Further down the list are the USA, the United Kingdom, Egypt, Ukraine, the Philippines, Mexico, Venezuela, and Saudi Arabia.

It's important to note that the major markets for high-end housing on the Costa del Sol, where over 90% of the investors are foreigners, come from Central and Western Europe. The British continue to account for a significant percentage of the buyers, and in recent years, there has been a considerable increase in other nationalities such as Polish, Dutch, and Czech investors.

In recent months, with the addition of direct flights from Malaga to destinations such as New York and Doha, there have been noticeable increases in these markets. This trend was generating significant expectations among entrepreneurs, which could be impacted by the elimination of the Golden Visa.

"The abolition of this measure will not solve the housing access problems being experienced in tense areas like the Costa del Sol and Malaga city, issues we at DOM3 are deeply concerned about. This is where the Central Government's efforts should be focused, on ensuring dignified housing at affordable prices for the population, rather than penalising a sector that generates quality employment and wealth in an area that, until recently, depended solely on sun and beach tourism," Simon laments.