Spain Golden Visa Cancelled? Government Moves “One Step Closer” to Closing the Program in January 2025
November 12, 2024 · Spain · 8 min read
The Spanish government is planning to close its Golden Visa program in January 2025. The program allows investors and their families to obtain a residence permit by making a qualifying investment in Spain.
The Spanish government is planning to close its Golden Visa program in January 2025. The program allows investors and their families to obtain a residence permit by making a qualifying investment in Spain. The decision comes amid concerns over property speculation, which has pushed up housing prices and made it harder for local residents to find a home.
The Spain Golden Visa program was launched in 2013 to attract international investors and help revive the economy after the 2008 financial crisis, offering several investment routes such as real estate, shares, and bank deposits. Over the years, it has drawn investors from around the world, particularly those seeking the right to reside in a European Union (EU) country.
Yet while it has delivered some economic benefits, the program has also drawn considerable criticism. A central concern is the sharp rise in housing prices, especially in major cities such as Madrid and Barcelona. Foreign investors buying property to qualify for the program have contributed to rising prices, making it difficult for many local residents to find affordable housing.
The Spain Golden Visa bill still has to complete the legislative process before it takes effect
Spanish Prime Minister Pedro Sánchez first announced plans to abolish the Golden Visa program in April 2024, but the process has run into several obstacles. Housing Minister Isabel Rodríguez initially sought to include the end of the Golden Visa in a new land law, but that plan failed for lack of support. Sánchez’s Socialist Party then moved to fold the abolition into a separate bill on the efficiency of the public justice service and consumer protection, which was before the Justice Committee. The bill would leave the key Golden Visa articles blank, effectively removing the program’s core requirements from existing law.
Although the bill was approved in the Justice Committee by an overwhelming majority, it still needs to pass both the Congress of Deputies and the Senate and receive royal assent before it formally becomes law.
In addition, the main opposition parties, the People’s Party (Partido Popular) and Vox, remain opposed to abolishing the program, signaling potential challenges in the upcoming parliamentary debates.
In addition to the real estate route, which requires a minimum investment of €500,000 (approximately US$560,000) and accounts for 95% of the residence permits issued, ending the program would also affect the other investment routes: the €2 million Spanish government bond option and the €1 million threshold for shares in Spanish companies or bank deposits.
According to Spanish media, if the bill completes the full legislative process, the changes could take effect in January 2025, meaning the Spain Golden Visa program could close in January 2025.
Spain Golden Visa alternatives: other European residency options
With this decision, Spain will join the countries that have closed their residency-by-investment (Golden Visa) programs, while many other EU countries are also looking to adjust similar programs to limit their negative impact on domestic markets.
Investors can currently consider residency-by-investment programs in other European countries such as Greece, Malta, and Cyprus. Benefits of these programs include:
- The right to live and study in a high-quality European environment (work rights vary by program), with access to healthcare and education.
- Visa-free travel within the Schengen Area for short stays (up to 90 days in any 180-day period) for holders of a residence permit issued by a Schengen member state, such as Greece or Malta. Cyprus is not yet part of the Schengen Area.
- A potential path to citizenship by naturalization once the residence and other legal requirements are met. Citizenship of an EU member state brings the right to live in any European Union (EU) country, along with visa-free or visa-on-arrival access to more than 180 destinations worldwide.
| Explore European residency by investment programs here.
If you are considering residency or citizenship by investment programs, contact IMM Group or leave your details below. Our experienced advisors will provide detailed guidance and help assess your eligibility and the strength of your application. We will keep your personal data confidential and use the information you provide only to advise on your family’s case.
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