Spain to End Golden Visa Program: Deadline Set for April

Madrid, Spain. Photo source: Visita Madrid

The Spanish government recently announced the abolition of its Golden Visa Program, a decision that follows Prime Minister Pedro Sánchez’s initial statement made a year ago. This move is part of the government’s effort to address the ongoing housing crisis in Spain.

The Golden Visa Program, a residency-by-investment initiative offered by several countries, allows non-EU nationals to obtain a residence permit by making a qualifying investment, typically in real estate, businesses, or government bonds.

According to the Spanish government’s decision, April 3 will be the final deadline for non-EU nationals wishing to apply for residency in Spain through the Golden Visa Program.

During the three-month “transition period,” which began on January 3 with the publication of the new law in the official government Gazette, Golden Visa applications will still be accepted. Applications pending as of the law’s effective date will continue to be reviewed, while those approved before the law’s implementation will remain renewable, even after the transition period ends.

Among the most popular options in Spain, the Golden Visa through real estate investment required wealthy individuals to purchase property worth at least 500,000 euros. This investment could include commercial, residential, or land property. Cities such as Madrid, Málaga, Alicante, Palma, Valencia, and Barcelona have been particularly popular, with these areas being considered the most stressed regions in terms of housing demand.

A matter of political decision

Prime Minister Pedro Sanchez. Photo source: Prime Minister’s press office

Prime Minister Pedro Sánchez had previously emphasized the government’s commitment to tackling Spain’s housing crisis during an April 2024 announcement. “Housing is not a mere speculative business, but a right,” he had stated. This decision aligns with broader efforts to ensure affordability and accessibility in Spain’s real estate market.

International media have pointed out that other Mediterranean countries are also taking steps to ease the pressure on housing and rental prices, both as a result of Golden Visa programs and the expansion of the short-term rental market.

In the context of Greece, it has been noted that the Greek government has raised the investment threshold for real estate properties to 800,000 euros (from as low as 250,000 euros previously) for applicants seeking a Golden Visa, with some geographical exceptions.

History, facts, and figures of Spanish Golden Visa Program

The Golden Visa Program in Spain was introduced in 2013 by the government of Mariano Rajoy, during the country’s financial crisis, as part of efforts to boost economic growth.

From its introduction until 2022, a total of 6,200 Golden Visas were granted, according to official estimates. The primary beneficiaries of the program were nationals from Russia and China. Of the total 6,200 visas, nearly 45 percent were issued to Chinese nationals, and 20 percent to Russian nationals, with an average investment of €657,204 per applicant.