Spain’s Congress Approves Bill to End Golden Visa Program by January 2025
Key Points
- Spain’s Congress of Deputies has approved a bill to remove the real estate investment option from the Golden Visa Program.
- The change is expected to take effect in January 2025, pending further legislative approval.
- The bill must still be reviewed by the Senate, with potential amendments, before returning to Congress for final approval.
Congress Approves Bill to End Real Estate Investment Option
On November 14, 2024, Spain’s Congress of Deputies approved a bill that proposes eliminating the real estate investment option from the country’s Golden Visa Program.
This decision aligns with amendments introduced under the Law for the Efficiency of Justice, which were recently endorsed in Congress. According to reports from local media, the real estate investment route could be phased out as early as January 2025. However, the bill still requires Senate review and final approval from Congress before it can be enacted.
Golden Visa and Real Estate Investment
Spain’s Golden Visa Program offers residency opportunities to non-EU nationals in exchange for significant investments in the country. Among the investment options, the real estate pathway has been the most popular, allowing individuals to obtain residency by purchasing property valued at €500,000 or more, subject to additional criteria.
Prime Minister Pedro Sánchez highlighted earlier this year that 94% of approved Golden Visas were linked to real estate investments, particularly in high-demand areas like Madrid, Barcelona, Málaga, and Valencia. He attributed this trend to exacerbating Spain’s housing crisis, prompting the government to propose removing this option.
In April 2024, Sánchez announced that the government would take steps to amend the 2013 law allowing residency through property investment. The move aims to prioritize housing as a fundamental right rather than a speculative opportunity.
Economic Impact of the Golden Visa Program
The Golden Visa Program has made significant contributions to Spain's economy, especially through real estate investments. In 2022 alone, 2,462 Golden Visas were issued under the real estate option, marking a 60% increase compared to 2021. Since the program's inception in 2013, over 11,464 individuals have benefited from it.
Despite its economic benefits, the government is shifting focus to address the housing crisis and ensure fair access to housing for residents.