The Spanish government has started the procedure to abolish the Golden Visa for foreign property investors which granted them a three-year renewable residence permit.
In 2013 this Golden Visa programme was the brainchild of the Conservative government, led by Mariano Rajoy. It was seen as a means of attracting crucial foreign investment following the impact of the eurozone crisis, which hammered Spain’s real estate sector.
However, on 9 April 2024 it was decided that granting visas in exchange for the purchase of properties valued at over 500,000€ would stop. Spanish Prime Minister Pedro Sánchez said, “Today, 94 out of every 100 such visas are linked to property investment. It is almost impossible to find decent housing for those who already live, work and pay taxes here.” He stated that his aim is to ensure that affordable housing is recognised as a fundamental right for local residents, and not simply a commercial activity. According to him, the majority of visas granted were for the purchase of properties in cities such as Madrid, Barcelona, Valencia, Malaga, Alicante and the Balearic Islands.
Transparency International notes that 2,712 Chinese nationals, representing more than 50 per cent of the total number of beneficiaries, received gold visas from Spain. Russians were the second largest group, with a total of 1,159. They were followed by 203 Iranian nationals, 179 Americans and 177 British nationals.
Therefore, as of April 2025 applications for “golden visas” for property investors will no longer be accepted. According to the Official State Gazette, “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 adds, “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.”
The decision also seems to stem from extra external pressure on Spain, from the European Commission, to abolish these visas with a view to cracking down on security concerns. So Spain is following in the footsteps of the UK who, in 2022, abolished their scheme of allowing foreigners residency in exchange for investment.
There are many who do not agree with the abolishment of the Golden Visa. They argue that its eradication will not improve the housing situation.
Francisco Iñareta, a representative of the property portal Idealista states that “the housing problem in Spain, both for sale and rent, is not caused by the golden visas, but by the growing lack of supply and the exponential increase in demand.”
What are your thoughts?