Spain phases out popular Golden Visa program by April 2025

Spain is set to phase out its "golden visa" program by April 2025, according to recent amendments published in the Official State Bulletin, per Caliber.Az.

The program, which has attracted wealthy non-EU citizens seeking residency in Spain through investment, will officially close its doors to new applicants in just over a year.

Under the new law, those who currently hold golden visas or who have already applied before the law comes into effect will maintain their permits, which will remain valid for the duration they were initially granted. The government clarified that investors or their families who applied for visas before the rule change will still be eligible to obtain their permits as per the old regulations.

Launched in 2013, Spain’s golden visa program has provided an easy path to residency for non-EU citizens who make substantial investments in the country. The most common route has been the purchase of real estate valued at €500,000 or more. Other investment options include investing €1 million or more in Spanish companies or €2 million in Spanish government bonds.

This program has drawn significant interest, particularly from wealthy investors looking for a European base. Spain’s appealing lifestyle, good weather, and robust economy have made it a popular destination for those seeking to relocate. In 2023, Russians were among the top foreign buyers of property, purchasing over 2,700 properties in Spain, a 60% rise from previous years. These investors typically chose the real estate route, boosting the Spanish property market.

The decision to end the golden visa program comes as Spain seeks to reevaluate its immigration and investment strategies. While the program has been a financial success, critics have argued that it allowed wealthy foreigners to purchase properties and gain residency without significant integration into Spanish society. The amendments may also reflect concerns about rising housing costs, particularly in cities like Madrid and Barcelona, where foreign investments have been driving up property prices.

While new applicants will no longer be able to apply for the golden visa after April 2025, current visa holders need not worry. As long as they apply before the cutoff date, they will retain their residence permits. This ensures that those already invested in the program can continue to enjoy the benefits of Spanish residency without disruption.

The ending of the golden visa program marks a significant shift in Spain’s approach to foreign investments and immigration. It’s expected that investors who were previously drawn to Spain for the residency benefits may now look to other countries with similar programs, such as Portugal or Greece, which are also popular destinations for real estate investments.

By Tamilla Hasanova