The End of Spain's Golden Visa
In a landmark move, the Spanish government has officially announced the end of the Golden Visa program, following a vote in December 2024. The law, published in Spain's Official State Gazette on January 3, 2025, outlines that the changes will come into effect three months after its publication. This means that foreign investors outside of the European Union will have until April 3, 2025, to take advantage of the program, which allowed them to purchase property worth €500,000 or more in exchange for a residence permit.
After this deadline, the Golden Visa program will no longer be available, and investors will need to explore other pathways to reside in Spain.
The Golden Visa: A Brief Overview
Launched in 2013, the Golden Visa program was initially introduced as a strategy to attract foreign investment to Spain during a challenging economic period. The aim was to stimulate the acquisition of real estate and encourage investments in areas like public debt, Spanish companies, and national projects of interest. Over time, the program gained popularity, particularly among foreign nationals seeking a second home or strategic investment in one of Europe’s most desirable destinations.
For over a decade, the program allowed non-EU investors to gain residency by acquiring property worth €500,000 or more. It served as a gateway for those looking to establish a presence in Spain, whether for personal or financial reasons.
Why the Program Was Abolished
On April 9, 2024, a consensus was reached to end the practice of granting visas in exchange for the purchase of high-value properties.
Prime Minister Pedro Sánchez explained that the government's decision to abolish the Golden Visa was rooted in the desire to ensure housing is viewed as a fundamental right, rather than a commodity for speculation. This decision reflects growing concerns about the affordability of housing for local residents, with an increasing number of Spaniards struggling to find suitable housing options amidst rising prices.
The Real Housing Challenge: More Complex Than the Golden Visa
While the Golden Visa program did attract foreign investment, specialists argue that the underlying housing issue in Spain is much more complicated. Spain’s housing market, both for sale and rent, is facing significant challenges due to a shortage of available properties and a rapid increase in demand.
Experts suggest that these factors—rather than the Golden Visa program itself—are the true causes of the housing crisis. Though the Golden Visa may have contributed to certain market dynamics, it was not the root cause of the growing affordability issues.
Act Quickly: What Investors Should Know
If you are considering investing in Spain, the Golden Visa program offers one last opportunity to secure residency by investing in property. However, with the program set to end soon, it’s important to act quickly. After April 3, 2025, alternative investment options will need to be explored.