Spain's Congress Approves Plan to Terminate Golden Visa Program by January 2025
Key Takeaways
1. Spain’s Congress of Deputies has approved a bill to eliminate the real estate investment option from the Golden Visa Program.
2. The change is expected to take effect in January 2025.
3. The bill must still pass through the Senate for amendments and return to Congress for final approval.
Spain’s Congress Advances Plan to End Golden Visa Real Estate Option by January 2025
On November 14, 2024, Spain’s Congress of Deputies approved a bill to remove the real estate investment route from the Golden Visa Program. The decision follows amendments passed under the Law for the Efficiency of Justice and supported in a Plenary Session of Congress.
Reports indicate that the real estate investment option could be discontinued from January 2025. However, the bill still requires Senate review and amendments before returning to Congress for final approval.
Phasing Out the Real Estate Investment Route
Spain’s Golden Visa Program has provided residency opportunities to non-EU nationals through various investment options, including real estate, business development, and capital transfers. Among these, real estate investment has been the most popular, allowing individuals to gain residency by purchasing property valued at €500,000 or more and meeting specific criteria.
Earlier this year, Spanish Prime Minister Pedro Sánchez noted that 94% of approved visas stemmed from real estate investments in high-demand areas such as Madrid, Barcelona, Málaga, and Valencia. Highlighting concerns about the impact on the housing market, Sánchez announced plans to eliminate this route, describing it as a contributor to Spain's housing crisis.
*"I want to announce that tomorrow’s Council of Ministers will study a report from the Minister of Housing and Urban Agenda to amend the 2013 law, which allows residency visas through housing investments in our country,"* Sánchez stated, adding that the government is committed to ensuring housing remains a right, not a speculative venture.
Golden Visa Program's Economic Contribution
Despite its challenges, Spain’s Golden Visa Program has significantly benefited the economy, particularly through real estate investments. In 2022, the country issued 2,462 golden visas for real estate purchases of €500,000 or more, a 60% increase compared to 2021. Since its introduction in 2013, the program has granted residency to 11,464 individuals.