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Spain has officially announced the termination of its Golden Visa program, effective from April 2025. This decision marks the conclusion of a scheme that had been in place since 2013, allowing wealthy non-EU investors to gain residency in Spain through significant investments, particularly in real estate. While the program offered a coveted pathway for affluent individuals seeking residency, its scrapping has left many potential buyers and investors reassessing their strategies.
The Golden Visa scheme allowed non-EU citizens to obtain a residence permit in Spain by investing substantial amounts, such as purchasing property worth over €500,000 or investing in Spanish public debt, shares, or companies. The program also included options for depositing large sums in Spanish banks or creating business ventures deemed beneficial to the national economy. For those seeking the coveted residency, it was an attractive opportunity – especially for property investors who viewed Spain as a prime market for luxury homes. However, starting in April 2025, no new Golden Visas will be issued, although those already holding one will be allowed to renew it under the existing rules, but without the same privileges as before.
The Golden Visa’s Controversial Legacy
Initially introduced under the government of Mariano Rajoy, the Golden Visa program was intended to attract foreign capital, stimulate economic growth, and bolster the Spanish property market. For years, it was seen as a quick fix to boost Spain’s economy by drawing wealthy investors into the country. However, critics argue that the scheme disproportionately benefited the rich, making it harder for the average citizen to afford property in areas like Madrid and Barcelona.
By the end of 2024, the Spanish government published the law to phase out the Golden Visa, marking the end of the 2013 Entrepreneurs’ Support Law. The reform was part of a broader judicial overhaul aimed at addressing pressing issues in Spain’s economy, including rising housing prices. The decision to cancel the program came after months of public debate and pressure, with Prime Minister Pedro Sánchez expressing his desire to end the initiative. Despite a lack of formal parliamentary debate, the law swiftly passed, with the opposition, including the PP party, boycotting sessions in protest of the government’s handling of recent natural disasters.
Impact on Golden Visa Holders and Spain’s Economy
The cessation of the Golden Visa program will undoubtedly have a significant impact on Spain’s real estate sector, particularly in high-demand areas. International buyers, especially from non-EU countries, have played a crucial role in driving up property prices, and their absence could cause some instability in the housing market. While critics argue that this is a much-needed correction, others fear it could harm Spain’s economy in the long run by discouraging foreign investment.
For those who currently hold a Golden Visa, the situation is less clear-cut. As per the new law, existing visa holders will still be able to renew their visas under the same conditions as before, provided they continue to meet the criteria set when the visa was originally granted. However, the once-popular scheme will no longer be available to new investors, forcing them to explore other avenues if they wish to live in Spain.
A Shift Toward Sustainable Growth
The Spanish government defends its decision to end the Golden Visa, arguing that it is time to focus on long-term, sustainable growth rather than rely on large-scale foreign investments. Officials claim that the program was a temporary fix and that Spain must now look to other ways to build its economy that do not disproportionately benefit the wealthy. The goal is to ensure that the country’s growth is more inclusive and that ordinary citizens can have better access to housing.
As the Golden Visa disappears, the future of foreign investment in Spain remains uncertain. While other types of visas are still available, such as those for entrepreneurs and skilled workers, the lucrative path of buying residency will no longer be an option. This shift could encourage a more diversified and balanced approach to investment in the country.
A Global Trend
Spain’s decision follows a broader global trend, with other countries like Portugal and Canada also eliminating similar visa programs. These countries had initially introduced Golden Visas to attract foreign capital, but growing concerns over their social and economic impact have led to their cancellation.
With the Golden Visa scheme officially coming to an end, Spain is entering a new era. Investors and those hoping to move to Spain will need to adjust their plans, exploring alternative investment opportunities and residency options. While the program’s closure may cause short-term disruption in the property market, it is part of a larger movement towards a more equitable and sustainable approach to economic growth.
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