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The abolishment of Spain’s Golden Visa Program will not prevent wealthy internationals from buying luxury homes since they are more interested in profitable investments rather than residency, according to some real estate experts.
In an effort to better manage the housing crisis, Spain decided to end its Golden Visa Program on April 3, 2025, Schengen.News reports.
The most sought-after option of this program is the real estate investment option, which offers residency in exchange for purchasing properties worth €500,000 or more.
Besides, Spanish authorities unfolded plans to impose a tax of up to 100 per cent on the value of properties bought by non-EU nationals following the decision to abolish the Golden Visa Program.
In this regard, immigration and property lawyer Maryem Essadik, CEO of Barcelona-based Marfour Law, told the Local Spain that “this doesn’t make much sense because foreign investors are competing for housing that’s out of the reach of middle-class or low-income locals.”
In spite of new changes announced by the Spanish government, real estate experts told the Local that abolishing this visa option will not make high-class properties more available or affordable.
Real estate experts mentioned examples from Madrid and the Balearic Islands, stressing that these two areas are where the majority of Spain’s luxury properties are bought, together with Valencia and the Costa del Sol.
The President of the Official College of Real Estate Agents (APIS) of the Balearic Islands, José Miguel Artieda, told the Spanish newspaper El Confidencial that “there is excess demand in the Balearic archipelago for the purchase of luxury and super-luxury housing.”
100% Tax on Property Purchases From Non-EU Nationals
The Prime Minister of Spain, Pedro Sánchez, recently announced plans to introduce a tax of up to 100 per cent on the value of properties bought by nationals from non-EU countries.
The Spanish PM stressed that in 2023, nationals from countries located outside the European Union bought a total of 27,000 properties in Spain, not to live in it but to make money out of it.
Authorities in Spain are seeking to curb the spread of short-term rentals in order to better manage the housing crisis.
The Spanish PM emphasised that housing is among the most significant risks in European countries. Sánchez added that housing must become a right and not the pillar of the welfare state.
Source: https://schengen.news/end-of-golden-visa-program-wont-discourage-foreigners-from-buying-luxury-homes-in-spain-experts-say/
