Spain has officially announced that it will be ending its Golden Visa Program, a scheme that allows non-EU nationals to obtain residency by making significant investments, mainly in real estate. The final deadline for submitting applications is April 3, 2025. After this date, the program will no longer be available.

Key Dates and Legislative Developments

• December 2024: Spain’s Congress of Deputies approved the plan to end the Golden Visa Program, with a close vote of 177 in favor and 170 against.
• January 3, 2025: Spain’s Official State Gazette (BOE) published Organic Law 1/2025, confirming the decision.
• April 3, 2025: The last day for non-EU investors to apply for a Golden Visa.

Initially, there was some political resistance to this change. The Spanish Senate vetoed the bill on December 2, 2024, but the government eventually moved forward with the proposal.

Why Is Spain Ending the Golden Visa Program?

The main reason behind this decision is the ongoing housing crisis in Spain. The government believes that allowing wealthy foreigners to buy property in exchange for residency has contributed to rising real estate prices, making housing unaffordable for many Spanish citizens.

Spain’s Prime Minister, Pedro Sánchez, emphasized that housing should be a fundamental right rather than a tool for speculation. The government aims to take necessary steps to stabilize the real estate market and ensure that properties are accessible to local residents rather than being used as investment assets by foreign buyers.

Impact of the Golden Visa Program Over the Years

Spain introduced the Golden Visa Program in 2013 to attract foreign investment, particularly in real estate. It was a highly popular initiative, bringing in significant economic benefits:

• In the first ten months of 2024, Spain granted 780 Golden Visas to investors.
• The average investment per applicant was approximately €657,204.
• Most participants in the program purchased property worth at least €500,000 to qualify for residency.

While the scheme contributed to the economy, critics argue that it exacerbated the housing crisis by driving up property prices, especially in major cities like Madrid, Barcelona, and Valencia. The government is now shifting its focus toward policies that prioritize affordability for residents.

Who Will Be Affected?

1. Foreign Investors

Non-EU investors who were planning to obtain residency through this program will now have to explore alternative residency options. Those who have already obtained a Golden Visa will likely be able to retain their residency status, but new applicants must act before the April 3, 2025 deadline.

2. Real Estate Market

Spain’s luxury property market might experience a slowdown, particularly in areas where foreign investors play a significant role. However, this could lead to more housing opportunities for Spanish citizens by reducing speculative buying.

3. Local Communities

Many locals, particularly in cities with high foreign investment, have struggled with rising rent prices and housing shortages. Ending the Golden Visa Program could help stabilize prices and make housing more accessible to residents.

What Are the Alternatives for Investors?

While the Golden Visa Program is ending, non-EU nationals who wish to live in Spain still have several options:

• Non-Lucrative Visa: Suitable for retirees or individuals with sufficient passive income, this visa allows residency without the need for investment.
• Entrepreneur Visa: Designed for those who wish to start a business in Spain.
• Highly Qualified Professional Visa: Available for skilled professionals who have job offers in Spain.
• Student Visa: For individuals who want to study in Spain and possibly transition to residency later.

Final Thoughts

The Golden Visa Program has played a significant role in Spain’s economy, attracting wealthy investors from around the world. However, its impact on housing affordability has led the government to take action. While the program is coming to an end, Spain still offers various pathways for foreign nationals who wish to relocate, invest, or do business in the country.

For investors still interested in applying, the deadline is quickly approaching. Those who wish to take advantage of the program must ensure that their applications are submitted before April 3, 2025.

In the long run, Spain’s decision reflects a broader trend seen in other European countries, where governments are re-evaluating the impact of residency-by-investment schemes. Whether this move will successfully address housing issues remains to be seen, but it marks a significant shift in Spain’s immigration and economic policies.