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Spain has officially ended its "Golden Visa" program, a residency-by-investment scheme that allowed non-EU nationals to obtain Spanish residency by investing at least €500,000 in real estate. This significant policy shift, effective April 3, 2025, aims to address the country's escalating housing crisis and curb property speculation.
Background and Rationale
Introduced in 2013 during an economic downturn, the Golden Visa program was designed to attract foreign investment. Over 14,500 visas were issued under this scheme, with approximately 95% linked to real estate purchases in major cities like Madrid, Barcelona, Málaga, and Valencia . However, critics argue that the influx of foreign capital inflated property prices, making housing less affordable for local residents. Prime Minister Pedro Sánchez emphasized that housing should be a right, not a speculative business, and described the program as contributing to housing inequality .
Legislative Action
The Spanish Congress approved the termination of the Golden Visa program through an amendment to the Law for the Efficiency of Justice. This legislative change eliminates residency permits tied to real estate investments. Notably, applications submitted before the law's enactment will still be processed under the previous regulations .
Impact and International Context
While the Golden Visa program attracted significant foreign investment, its impact on the broader housing market was relatively limited, accounting for less than 0.1% of over four million home sales during its operation . Nonetheless, the program's termination aligns Spain with other European countries like Portugal and Ireland, which have also ended similar schemes in response to housing affordability concerns and EU pressure to mitigate risks associated with money laundering and security .
This policy change reflects Spain's commitment to prioritizing affordable housing for its citizens and addressing the challenges posed by speculative real estate investments.
