Spain scraps golden visa: Why it ended — know the hot alternatives

Spain has officially ended its Golden Visa, the residency-by-investment programme that for over a decade provided a gateway for non-EU citizens to gain residency through financial contributions. The decision reflects growing concern over speculative property investment, affordability issues, and a worsening housing shortage in the country.

Authorities estimate that Spain faces a deficit of nearly 600,000 housing units in 2025, with local residents increasingly priced out of urban markets such as Madrid and Barcelona.

From financial recovery tool to housing pressure

The Golden Visa was first introduced in 2013 under Law 14/2013, designed to stimulate the Spanish economy following the global financial crisis. It granted residency permits to investors who committed significant funds to Spain, most notably through real estate purchases.

For more than a decade, the programme attracted thousands of non-EU investors, particularly from Asia, the Middle East, and Latin America, contributing billions of euros to the property sector.

By the end of 2023, official data showed 14,576 applications had been approved since launch. With an additional 936 approvals in 2024, the total stood at approximately 15,512 by the programme’s closure—a figure excluding family members who often accompanied the primary applicants.

Why the Golden Visa became controversial

While the programme bolstered capital inflows, more than 90% of applicants pursued the real estate route, which required a property investment of at least €500,000. Far fewer investors opted for business creation, innovative projects, or government bonds.

Critics argued that this heavy reliance on property purchases contributed to speculative bubbles, making homes less affordable for average Spaniards. With rental costs soaring and young families struggling to access housing, the scheme came under sustained political and public pressure.

Prime Minister Pedro Sánchez’s coalition responded by framing housing as a fundamental right rather than an investment tool. This shift in policy led to the programme’s dismantling.

Legal repeal and final deadline

In late 2024, Spain’s Congress passed Organic Law 1/2025, which repealed the relevant provisions of the 2013 legislation. Published in the Official State Gazette on January 3, 2025, the new law set April 3, 2025 as the cut-off date for new applications.

• Applications submitted before April 3: processed under previous rules.
• Applications after April 3: no longer accepted.
• Existing Golden Visa holders: retain residency rights and can continue to renew permits.

Benefits that made it popular

The Golden Visa was attractive for several reasons:

• Visa-free travel across the 27-country Schengen Area.
• Minimal stay requirement — applicants only needed to visit Spain once per renewal period.
• Family inclusion — spouses, dependent parents, and children under 18 could join.
• Residency pathway — one-year permit renewable every two years, leading to permanent residency in five years and possible citizenship in ten.
• Tax incentives — non-residents living fewer than 183 days per year were only taxed on Spanish-sourced income, avoiding global taxation.
• Access to services — holders benefited from Spain’s healthcare, education, and cultural infrastructure.

Impact on property market

The scheme injected over €1 billion annually into the Spanish economy, most of it into real estate. However, policymakers argued that this influx did little to address broader social and economic needs.

With housing costs escalating, the government determined that the visa was exacerbating inequality and crowding locals out of housing markets.

Alternatives after Spain’s decision

Investors and high-net-worth individuals are now turning to other European options:

• Portugal’s Golden Visa (fund-based investments rather than property).
• Greece’s Golden Visa, requiring €250,000+ in real estate.
• Spain’s Non-Lucrative Visa, suitable for retirees or those with passive income.
• Spain’s Digital Nomad Visa, offering one-year renewable permits for remote workers.

The bigger picture

Spain’s move highlights Europe’s evolving approach to residency-by-investment programmes, balancing economic gain with social responsibility. While lucrative, such schemes face increasing scrutiny for driving inequality and speculative real estate practices.

For Spain, the abolition of the Golden Visa closes a profitable yet contentious chapter, underscoring a new priority: making housing accessible and affordable for citizens first.