The Spanish Government Finally Ends the Golden Visa Program: There Is Still Hope

• Ending of residency permits for investments initiated by Rajoy's Government in 2013
• Applicants applying before the new regulation takes effect will obtain the visa.
• The law was published in the BOE on January 3rd this year but will come into force in April.

The Spanish government has completed the procedure to terminate the Golden Visa program - we wrote about the ending of the Golden Visa program last year - which previously granted residency to foreign real estate investors for properties valued at 500,000 euros or more. This decision was made at a Council of Ministers meeting on April 9, 2024, marking the end of an initiative started in 2013 under the government of Mariano Rajoy, aimed at attracting foreign investments after the severe Eurozone crisis that impacted the Spanish real estate market.

Current President Pedro Sánchez emphasized that the goal of eliminating the program is to recognize access to affordable housing as a fundamental right rather than a speculative business opportunity. "94% of these visas are linked to real estate investments in major cities, which are dealing with an overstressed market where it is nearly impossible to find decent housing for those who already live, work, and pay taxes there," Sánchez stated. Starting in April 2025, the government will no longer accept new applications for Golden Visas, though it will continue processing renewals and maintain the validity of visas already granted until their expiration.

While the Golden Visa program also allowed residency for substantial investments in government bonds or rising Spanish companies, the majority of visas have been granted for real estate purchases. Transparency International highlighted that in 2023 alone, 6,200 Golden Visas were granted, with a high concentration of Chinese beneficiaries, followed by Russians, Iranians, Americans, and Britons.

Katya Moshnikova, a senior Barcelona real estate sales consultant at Urbane International Real Estate, highlighted the usefulness of the Golden Visa program for non-European investors seeking Spanish residency, although she mentioned that many tend to overestimate the number of beneficiaries. "In over a decade, we've only seen just over 22,000 beneficiaries in 11 years, which represents about 2,000 sales a year against a total sales volume that ranges from 400,000 to 720,000 annually. Clearly, these numbers are not sufficient to significantly impact the real estate market or justify the government's concerns that the program affects housing access," explained Moshnikova. She added that, despite these figures, it remains the easiest and most effective way to obtain Spanish residency. Moshnikova also pointed out that with the Golden Visa, an investor can work but does not have to become a tax resident.

Internationally, countries such as the United Kingdom, Ireland, Portugal, and Australia have reformed or abolished similar programs, responding to pressures from the European Commission which urges tightening policies due to security concerns, especially following recent geopolitical events like the Russian invasion of Ukraine.

There Is Still Time to Act

Despite the imminent elimination of the program, there is still a window of opportunity for those interested in taking advantage of the Golden Visa in Spain. Urbane International Real Estate, with over 35 years of experience and having managed more than 100 Golden Visa clients, is fully prepared to assist clients who wish to act quickly while there is still time. This is a call to action for those who want to secure their residency in Spain through real estate investment, taking advantage of the final moments of this beneficial program.