The decision of Spain to cease the Golden Visa program on April 3, 2025, signals a major shift in the realm of foreign investment and resident. After more than a decade of providing non-EU citizens the right to reside in exchange for substantial financial investment, especially in real property and property development, the Spanish government has cut off the program. For investors from around the world and real estate developers and potential EU citizens, this move can be both symbolic and significant. In this article, we will explore the reasons Spain took this decision and what it affects investors as well as the real property market and how this move is a part of the wider European trend.
Table of Contents
What Was Spain’s Golden Visa Program?
In 2013, in the aftermath of Spain’s economic slump In 2013, the Golden Visa scheme was designed to draw foreign capital. It gave non-EU citizens residency rights if they made an investment of at the minimum of EUR500,000 into Spanish real estate or other qualified assets such as bonds issued by the government or investment funds.
Investors were also granted visa-free travel within the Schengen Area, and after 10 years of residence legally it was possible to obtain Spanish citizenship. The program drew nearly 16,000 investors and the majority of them came from China, Russia, the United States, and the United Kingdom.
Why Did Spain End the Program?
The Spanish government, headed by the leadership of Prime Minister Pedro Sanchez, cited several reasons:
- Housing Affordability Critics claimed the program was responsible for rising prices for housing, especially in cities such as Madrid and Barcelona.
- Beware of Speculation: There was a growing concerns that homes were being bought, not to be used as homes but rather as investment properties for speculation.
- Public Sentiment: Residents and housing advocates resisted the system they believed prioritized international wealth above local needs.
- EU Pressure The European Union has called for stricter oversight or bans on these plans, citing fears regarding tax evasion, money laundering and national security threats.
- Limited Impact Reports show that Golden Visa linked purchases accounted for less than 0.1 percent of the total real estate transactions in the period 2013-2022.
- Economic imbalance The government also analyzed that other investment avenues in the framework of the program (such such as business ventures or public debt) didn’t produce large-scale economic benefits.
Although only a small fraction of the Spanish housing market was directly affected by the program, the symbolic significance of ending the program conveys a clear message that housing is for individuals not portfolios.
Impact on Global Investors
The end of the Golden Visa program cuts off an easy route to EU residency for those who are wealthy and non-EU citizens.
Who’s Affected?
- High-net-worth people from countries such as the US, UK, China and Russia who saw the program as a way to Europe.
- Real property investors looking to enter the Spanish property market to gain the lifestyle aspect as well as long-term profits.
Where Will They Go Now?
The closure of Spain could shift investor attention to:
- Greece: Offering residency for a minimum real estate investment of EUR250,000-EUR800,000 depending on location.
- Portugal offers options such as capital transfers, investment funds or job creation although real estate was taken off in 2023.
- Italy allows the investment of EUR250,000 for start-ups to EUR2,000,000 of government bonds.
- Hungary Relaunched their program in 2024, focusing on real estate investment funds and education donation.
- Malta and Cyprus are still fairly easy routes towards permanent residency.
The departure of Spain makes the field more narrow however, there are still options.
Spain’s Real Estate Market After the Golden Visa
The Golden Visa program was often blamed for price increases in cities that are hot spots. However, the data indicates that its actual impact could have been a bit less:
- In 2023 Golden Visa related purchases comprised only 0.1 percent of total real property transactions.
- Foreigners bought 87,000 houses in 2023, which is about 15 percent of transactions.
- The main issue is the chronic housing shortage in Spain and the projected shortage of 600,000 houses by 2025.
What Could Change?
- Luxury Property Market may see a decline in demand for properties that cost more than EUR500,000, mainly in the important regions such as Madrid, Barcelona, and the Costa del Sol.
- Developer Strategy Projects that target Golden Visa investors may pivot towards domestic or lifestyle buyers.
- State Measures: Spain may introduce higher property taxes for foreign non-resident buyers, further cooling speculation investment.
While there are some short-term fluctuations to be expected the long-term stability will be due to Spain’s popularity and value for lifestyle.
Impact on the UK’s Residency Program
With Spain out certain investors might be interested in the UK’s Tier 1 Investor Visa. However, the UK isn’t the only one in the queue:
- investment requirement Starts at PS2 million, which is four times the threshold for Spain.
- Limited EU Access: Post-Brexit, no Schengen or EU mobility.
- Security Examination The original UK investor visa canceled in 2022 because of national security issues.
While the UK may see a small amount of interest, EU-based programs such as programs that are in Greece or Italy are more likely to draw Spain’s displaced investors.
Alternative Residency Options in Spain
For those who are still keen on moving to Spain, a variety of visa options remain open:
| Visa Type | Target Audience | Key Requirements |
|---|---|---|
| Non-Lucrative Visa | Retirees and passive income earners | A monthly income of EUR2,400 private insurance, and cannot work in Spain |
| Entrepreneur Visa | Startup founders, business innovators, and founders | Business plan that is viable, economic/social contribution, money to support the project |
| Digital Nomad Visa | Remote workers, freelancers | Earn up to 80% of your income from abroad, EUR2,760/month minimum |
| Work Visa | Employees who are sponsored | Valid job offer with sponsoring by the employer, and salary thresholds met |
| Student Visa | Foreign students | Enrollment proof, financial means, accommodation & insurance |
Applications received prior to the 3rd of April, 2025 will be processed in accordance with previous rules. Current holders of visas will retain their rights.
Europe’s Shifting Stance on Investment Migration
Spain’s departure out of the Golden Visa scene is part of a larger trend across Europe:
- Ireland The country has ended the Golden Visa program.
- Portugal removed real estate from being an investment that is eligible.
- Netherlands The Netherlands has ended the option for investors to get a visa.
- Hungary The country has recently launched its program under new conditions.
- Greece The country is open, but has raised investment thresholds in important areas.
- EU Examination Growing concern over the security of financial information, transparency and equity in housing.
There’s a growing trend in Europe to limit the flow of passive investments in favor active participation in the economy.
Final Thoughts: End of an Era, Start of a New Chapter
The closure of Spain’s Golden Visa program is both an effective response to housing problems and an opportunity to signal investors around the world. While it conveys an unambiguous message about national priorities, the evidence indicates that its direct impact on the market was very limited.
Investors, for instance, can mean an opportunity to move towards different EU nations or an innovative strategy such as remote work or entrepreneurship. For Spain it’s a shift towards more sustainable open economic participation.
As global mobility continues to evolve the need for adaptability is paramount. If you’re looking to move to or invest or develop in Spain understanding your options regarding visas and the changing environment of investment migration is crucial in the years to come.
Be informed and weigh your options and make a plan.