Spain Is Ending Its Golden Visa Program in April 2025
Updated: Jan 15
The Golden Visa Program in Spain will be terminated on April 3, 2025, as part of efforts to address the ongoing housing crisis in the country, according to a decree published in the Official State Gazette. This decision follows concerns that the program has contributed to rising housing prices and made it more difficult for local residents to access affordable housing.
The government aims to prioritize housing equity and accessibility, signaling a significant shift in policy regarding foreign investment in real estate.
"Visas and authorisations for investors that are in force on the date of entry into force of this transitional provision will remain valid for the period for which they were issued" the document states.
It also states - "In the event that renewal applications are submitted, they will be processed and resolved in accordance with the regulations in force on the date on which the initial authorisation was granted".
Key Changes to the Golden Visa Program in Spain
In January 2025, the Spanish government officially announced the termination of the Golden Visa program. This decision follows a broader trend across Europe, where several countries have either overhauled or discontinued their residency by investment pathways. Unlike some neighboring countries that have only restricted specific investment options, Spain has chosen to eliminate the entire program.
Following the announcement, a transitional period has been established, allowing applications under the existing rules until April 30, 2025. This provides a limited window for investors to secure residency through the current program, which includes options such as the €500,000 real estate investment or investments in treasury bonds and business ventures.
Reference: Spain is ending Golden Visa Program.
Surge in New Applications
The impending closure of the Golden Visa program has resulted in a significant surge in applications. Reports indicate that the number of applications tripled in June 2024 and has continued to rise sharply since the beginning of January 2025. Investors are rushing to take advantage of the program before the new restrictions take effect.
Market Response
The announcement of the program's termination has led to heightened demand for luxury properties, particularly in major cities like Madrid and Barcelona. This rush reflects investors' urgency to secure their residency status before the program is officially closed.
Why is Spain ending its Golden Visa Program?
Here are the key reasons behind this decision:
1. Impact on Housing Prices
The program has been linked to rising housing prices, particularly in major cities like Madrid and Barcelona. Many believe that foreign investment through the Golden Visa has contributed to making housing less affordable for local residents.
2. Focus on Housing Affordability
The Spanish government aims to prioritize housing as a fundamental right rather than a speculative investment opportunity. By abolishing the Golden Visa, officials hope to make housing more accessible to those who live and work in Spain.
3. Political Pressure
The decision to end the program has been influenced by the left-wing coalition partners in the government, who have long advocated for reforms to improve housing conditions for citizens.
4. European Commission's Stance
There has been external pressure from the European Commission urging EU countries to reconsider residency-by-investment programs due to security concerns, especially in light of geopolitical events such as Russia's invasion of Ukraine.
5. Historical Context
The Golden Visa Program was introduced in 2013 to attract foreign investment following the eurozone crisis. However, the current government views it as no longer aligned with the needs of the Spanish population.
During a meeting of the Council of Ministers on 9 April 2024, ministers reached a consensus to end the practice of granting visas in exchange for the purchase of properties valued at 500,000 euros or more.
In summary, the abolition of the Golden Visa Program is part of a broader strategy to tackle the housing crisis and ensure that housing remains affordable for local residents.
Read More:
The recent changes to the Spanish Golden Visa program have created a significant surge in new applications, especially from U.S. citizens eager to secure their residency before the program's termination. With a limited timeframe and increasing competition, potential applicants must act quickly to take advantage of the existing opportunities.
