Lorraine Williamson
Spain’s government has announced that the Golden Visa programme, which grants residency to non-EU nationals who invest in real estate, will no longer be available after April 2, 2025.
Applications submitted before this date may still be processed under the laws in effect before the deadline.
What is the Golden Visa?
The Golden Visa allows non-EU nationals to obtain Spanish residency by making a significant investment in the country’s economy. The main qualifying investments include:
- Real estate: Purchasing property worth at least €500,000. If the property is co-owned, each applicant must meet the minimum investment threshold individually.
- Public debt: Investing at least €2 million in Spanish government bonds.
- Business investment: Investing at least €1 million in Spanish stocks, closed-end investment funds, venture capital funds, or bank deposits in Spanish financial institutions.
The Golden Visa is the only residency permit in Spain that does not require a minimum stay for renewal, allowing holders to leave Spain for more than six months without losing their status.
Reasons for ending the scheme
The Spanish government argues that the programme has contributed to rising housing costs, particularly in Madrid, Barcelona, and coastal regions. Prime Minister Pedro Sánchez recently announced that eliminating the scheme is part of a broader strategy to make housing more accessible to residents.
Critics say it primarily benefits wealthy investors while worsening housing shortages for locals. According to government data, a significant portion of visas have been granted in areas where property prices have surged the most.
Impact on foreign investors
- Applications submitted before April 2, 2025: These will still be processed under the current regulations.
- Existing Golden Visa holders: Visas granted before April 2, 2025, will remain valid for their original duration. Renewal applications will be assessed under the legal framework in place when the visa was initially granted.
- New applications after April 2, 2025: Will no longer be accepted under the Golden Visa scheme.
Countries such as Portugal and Ireland have already discontinued similar programmes, citing concerns over housing affordability and market speculation.
Future residency options
Spain continues to offer other residency options for non-EU nationals, including:
- Non-Lucrative Visa: Requires proof of financial means and does not permit employment.
- Digital Nomad Visa: Allows remote workers to live in Spain while working for foreign companies.
Applying for the Golden Visa before April 2, 2025
To apply before the deadline, applicants must meet the following requirements:
- Be a non-EU national
- Have sufficient financial means to sustain themselves and any dependants
- Have no criminal record or entry ban to Spain
- Provide a valid medical certificate
- Obtain public or private health insurance valid in Spain
- Pay the visa fee, which varies by country
Applications must be submitted to the relevant Spanish consulate. After approval, the applicant must enter Spain within three months and apply for a residency card (TIE) within one month of arrival.
What Happens Next?
The Spanish government is finalising the phase-out process. Investors considering property purchases for residency should stay updated on legal changes and explore alternative visa options.