Interest in Spain’s Golden Visa Program has soared as the deadline for its termination draws near.
Since the announcement on January 3rd, 2025, published in Spain’s Official State Gazette (BOE), applications for the Golden Visa have surged, with non-EU nationals eager to secure residency in exchange for substantial investments. The program, which offers residency in Spain—including the Canary Islands—for investments like property purchases valued at €500,000 or more, is set to end on April 3rd, 2025.
Legislative Path to Termination
The decision to end the Golden Visa Program was formalized through Organic Law 1/2025. This law was passed by the Spanish Congress in December 2024, with a narrow approval of 177 votes in favor and 170 votes against.
Initially, the Senate vetoed the bill on December 2nd, 2024, causing a brief period of uncertainty. However, the bill was later passed in Congress and enacted on January 3rd, 2025. The legislation specifies that the program will end three months after publication in the BOE, giving investors a short window to apply.
Housing Crisis Motivates Change
The termination of the Golden Visa Program is part of Spain’s effort to tackle its ongoing housing crisis. President Pedro Sánchez emphasized the importance of prioritizing housing as a fundamental right over speculative investments.
Critics have long claimed that the program contributed to rising property prices, making housing increasingly unaffordable for local residents.
Launched in 2013, the Golden Visa Program allowed wealthy non-EU nationals to obtain Spanish residency in exchange for significant investments, primarily in real estate. Over the years, the program attracted substantial foreign investment but faced growing opposition due to concerns over its impact on housing accessibility.
Golden Visa’s Economic Impact and Recent Surge
Despite criticisms, the Golden Visa Program generated considerable revenue for Spain’s real estate market. In the first ten months of 2024 alone, Spain granted 780 Golden Visas, with each applicant investing an average of €657,204.
Following the announcement of the program’s termination, real estate investment firms like Golden Partners have reported a sharp rise in inquiries and applications as investors rush to apply before the deadline.
Implications of the Golden Visa’s End
The end of the Golden Visa Program marks the conclusion of one of Spain’s most well-known residency-by-investment initiatives. Although this change may slow certain segments of the real estate market, the government views it as a necessary step to address Spain’s housing issues.
Looking ahead, the focus will likely shift to policies aimed at making housing more affordable while reducing speculative activity in the property market.
