Spain to End Golden Visa Benefits Starting January 2025
Key Takeaways
1. Spain will end new residence permits through its Golden Visa Program starting January 2025.
2. The country will eliminate the real estate investment option to address the housing crisis.
3. Despite the removal of the real estate investment route, demand for Golden Visas in Spain remains strong.
Beginning in January 2025, Spain will no longer issue new residence permits through its Golden Visa Program in exchange for financial investments.
A report from La Region reveals that Spain’s Socialist Workers’ Party (PSOE) and its parliamentary allies pushed through legislation in the Justice Commission to discontinue the Golden Visa Program.
Spain has long been a popular destination for those seeking residency via investment, particularly for wealthy foreign nationals.
End of Real Estate Investment Option
The Golden Visa Program offered various ways for investors to gain residency, with the most popular option being through real estate investment, which allowed residency for those purchasing property worth €500,000 or more.
However, the growing demand for this option contributed to the country’s ongoing housing crisis. In response, Spanish Prime Minister Pedro Sánchez announced in April that the real estate investment route would be terminated as part of a broader effort to address the housing issue.
"I want to announce that tomorrow’s Council of Ministers will review a report submitted by the Minister of Housing and Urban Agenda to amend the law approved by the Popular Party in 2013, which permits obtaining residency through housing investment in Spain."
Golden Visa and EU Concerns
Golden Visa and Golden Passport programs, which offer residency or citizenship in exchange for financial investment, have faced increasing scrutiny from the EU due to concerns about potential misuse, such as money laundering and corruption.
Despite removing the real estate investment route, some critics, including Eka Rostomashvili, coordinator of Transparency International in Spain, believe this change does not go far enough. Rostomashvili highlighted that abolishing the real estate investment option doesn’t solve the broader issue of investor-driven programs potentially leading to irregular activities.
Surge in Golden Visa Applications
Interestingly, the removal of the real estate option has spurred a rise in demand for Spain’s Golden Visa Program. Juan Carlos Lois, an expert in international mobility, noted that applications in August tripled compared to the previous year, with requests coming in daily throughout the month.