Spain Ends Golden Visa Today

As of today, April 3, the amendment to Law 14/2013, dated September 27, concerning support for entrepreneurs and their internationalization, is now in effect. This change abolishes investment visas, commonly referred to as 'golden visas', following the announcement on January 3 of Organic Law 1/2025, dated January 2, regarding measures for the efficiency of the Public Justice Service. The first law passed in 2025 provided a three-month timeframe for the removal of articles 63 to 67 of Law 14/2013, which previously governed the residency regime for foreigners making significant investments in the country, including purchasing property in Spain valued at a minimum of 500,000 euros.

The 'golden visa', or residence visa for investment, was initially introduced to attract foreign investment during the economic crisis of 2013, promoting the acquisition of real estate and other assets such as public debt, investment funds, or investments in Spanish companies or projects of general interest.

It was established during the tenure of Mariano Rajoy (PP), similar to other European countries like Portugal and Greece following the 2008 crisis. Initially granted for two years, it could be renewed for successive five-year periods, provided the investment was maintained. Moreover, it was not necessary to reside permanently in Spain to keep it, allowing free movement within the Schengen Area.

During the previous term, former minister and current Governor of the Bank of Spain, José Luis Escrivá, mentioned that the Executive was considering revising the conditions of this visa. In April 2024, Prime Minister Pedro Sánchez announced the discontinuation of this visa for home purchases. At that time, the Government justified ending the "golden visa" due to the increase in home purchases by non-resident foreigners starting in 2022, particularly among British nationals (post-Brexit), Russians, Chinese, and Latin Americans.

From 2013 to 2023, 14,576 visas were issued for home purchases exceeding €500,000. While 2,017 visas were granted in 2022, the number rose to 3,270 applications in 2023, doubling the 2021 figure (997).

The most recent data for 2024 indicates that golden visa applications approached 800, as despite the government's announcement nearly a year ago, the investment remains valid for those who applied before the regulation took effect.

In terms of visa renewals, these will be processed and resolved according to the regulations in force on the date the initial authorization was granted.

Over the past year, visas have been issued to individuals from the Persian Gulf, including Saudi Arabia, Kuwait, and Qatar; European countries such as the United Kingdom, Ukraine, Serbia, and Turkey; and Latin American countries such as Venezuela, Argentina, Chile, Uruguay, Brazil, Colombia, and Mexico.

The latest Real Estate Registry Statistics Yearbook from the Property Registrars for 2023 noted that "the positive trend in home purchases by foreigners over the last two years has been partly due to the addition of new nationalities to home purchases in Spain."

The proportion of housing purchases by foreigners exceeding 500,000 euros accounted for 9.71% of all purchases made by foreigners in 2023 (approximately 8,500 units).

Of the total foreign home buyers with purchases exceeding €500,000, 49.59% were EU citizens and 50.41% were non-EU citizens (around 4,500 homes). The latter are eligible for the residence permit, although a "golden visa" can also be obtained for purchasing multiple properties totaling that amount.

The main provinces targeted by these purchases of more than half a million euros include Barcelona, Madrid, Malaga, Alicante, the Balearic Islands, and Valencia. In cities like Marbella and Barcelona, home purchases linked to this type of investment account for 7.1% of total transactions in the Costa del Sol city, 5.3% in Barcelona, and 10% in some municipalities in the Balearic Islands, according to the Ministry of Housing and Urban Agenda (MIVAU).