Spain closes the “Golden Visa” program. What to do next?

Spain has officially announced the cancellation of the issuance of “golden visas” starting from April 3, 2025. This decision has caused a wide resonance among foreign investors seeking residency in this attractive European country.

What is a “Golden Visa” and how did it work?

The “golden visa” program, launched in 2013, allowed foreign investors to obtain residency (residency permit) in Spain in exchange for significant investments. The most popular option was the purchase of real estate worth from €500,000. Additionally, there were other investment options:

Investments in shares of Spanish companies for amounts starting from €1 million.
Investments in Spanish government bonds for amounts starting from €2 million.
Investments in bank deposits in Spanish financial institutions for amounts starting from €1 million.

The “golden visa” program attracted significant foreign investments to Spain, especially in the real estate sector. It became a popular way for investors from different countries to obtain residency, wishing to live, work, or do business in Spain, as well as to move freely within the Schengen area.

Why is Spain canceling the “Golden Visa”?

The Spanish government explains the cancellation of the “golden visa” program for several reasons, the main one being the fight against rising housing prices and ensuring the availability of real estate for local residents. In recent years, the real estate market in Spain has experienced significant growth, especially in major cities and popular tourist regions. The government fears that the “golden visa” program contributes to speculation in the real estate market and displaces local buyers, making housing less accessible for them.

Main provisions of the cancellation of the “Golden Visa”

Dates: The “golden visa” program will be canceled starting from April 3, 2025.
Existing visas: Investors who have already obtained “golden visas” will retain their resident status until the expiration of their visa.
Application submissions: Applications submitted before April 3, 2025, will be processed according to the current rules.
Alternative options: Spain offers other types of visas for foreigners wishing to reside in the country. For example:

NOMAD visa
Start Up visa
Student visa

What does this mean for investors?

Limited time: Investors have until April 3, 2025, to apply for a “golden visa”.
Retention of status: Investors who have already obtained “golden visas” will be able to retain their resident status until the expiration of their visa.
Restriction of freedom of movement: After the cancellation of the program, investors who do not obtain a “golden visa” will be restricted in their freedom of movement within the Schengen area.
Restriction on obtaining citizenship: The “golden visa” allowed investors to obtain Spanish citizenship after 10 years of residence in the country. After the cancellation of the program, this opportunity will be limited.
Alternative options: Investors will have to consider other ways to obtain residency in Spain.

Impact on the real estate market

The cancellation of the “golden visas” may impact the real estate market in Spain, especially in regions popular among foreign investors. It is expected that the demand for real estate meeting the “golden visa” requirements will increase in the coming months, which may lead to rising prices. However, after the cancellation of the program, demand may decrease, which could lead to stabilization or a decrease in prices.

Alternative options for investors

Despite the cancellation of the “golden visas”, Spain remains an attractive place to live and do business. Investors may consider the following alternative options:

“Non-lucrative residence” (visado de residencia no lucrativa): This type of visa is suitable for foreigners with sufficient means to live in Spain without the need to work. To obtain this visa, it is necessary to prove a stable income and sufficient savings.
Visa for highly qualified professionals (visado de profesional altamente cualificado): Spain offers special visas for foreign professionals working in certain sectors, such as technology, science, and engineering. To obtain this visa, one must have a higher education and work experience in the relevant field.
Entrepreneur visa (visado de emprendedor): This type of visa is suitable for foreign entrepreneurs wishing to start or develop a business in Spain. To obtain this visa, it is necessary to present a business plan and prove financial viability.
Student visa (visado de estudiante): Foreign students wishing to study in Spain can obtain a student visa. After graduation, they can apply for a residency permit for work or business.
Start-up visa: This is a new category of visa introduced under the Start-up Law (Ley de Startups), which came into effect in 2023. It is specifically designed for founders of start-ups and employees of innovative companies. It offers a number of tax benefits and a simplified application process.
NOMAD visa: Designed for remote workers who work for foreign companies or run their business online without affecting the local labor market. Proof of remote income and compliance with certain tax conditions is required.

Recommendations for investors

Investors interested in obtaining residency in Spain are recommended to:

Act quickly: If you wish to obtain a “golden visa”, make sure to purchase real estate in Spain and apply for the visa as soon as possible, as the deadlines are limited. SunLine real estate can assist you with this.
Thoroughly explore alternative options: Consider other ways to obtain residency in Spain to be prepared for changes.
Consult with lawyers and immigration specialists: Reach out to professionals for advice on immigration and investment matters.
Carefully check documents: Ensure that all your documents are in order and meet the requirements of the “golden visa” program or alternative options.
Be prepared for changes: Immigration policies may change, so be ready for possible changes in rules and requirements.

Conclusion

The cancellation of the “golden visa” program in Spain is a significant change that requires prompt action from investors. However, Spain continues to be an attractive country for living and doing business, and there are alternative options for those who want to obtain residency. It is important to thoroughly explore all available options, consult with professionals, and make an informed decision.

For more useful information about laws and life in Spain, visit the SunLine real estate website in the “Blog” section.