The Golden Visa, a program that has allowed foreign investors to obtain residency in Spain since 2013, will come to an end on the 3rd of April 2025. This decision marks a significant change in the country's immigration and investment policies. Let's take a look at the most important details about this elimination and its implications.
Written by Esjaba Messaoud
Lawyer, Political Scientist and Mediator
Key date and reasons for the phase-out
The Spanish government has officially set the 3rd of April 2025 as the date when it will stop accepting new applications for the Golden Visa. This decision was made after months of legislative debate and was approved by the Congress of Deputies with 177 votes in favor and 170 against. Its elimination is approved through Organic Law 1/2025, of the 2nd of January, on measures regarding the efficiency of the Public Justice Service (Ley Orgánica 1/2025, de 2 de enero, de medidas en materia de eficiencia del Servicio Público de Justicia), which abolishes Articles 63 to 67 of the Law 14/2013, of the 27th of September, supporting entrepreneurs and their internationalisation (Ley 14/2013, de 27 de septiembre, de apoyo a los emprendedores y su internacionalización).
The main reasons for eliminating the program include:
- Housing affordability crisis: It is argued that the program has inflated property prices in major cities such as Barcelona and Madrid.
- Limited economic impact: Although it attracted investors, the broader economic benefits, such as job creation, were less significant than expected.
Transitional Provisions
It is important to note that there are transitional provisions for those already participating in the program or in the process of applying:
- Investors and family members holding a Golden Visa valid as of the 3rd of April 2025 will retain its validity for the time for which it was granted.
- Applications submitted prior to the 3rd of April 2025 will be processed according to the regulations in effect on the date of submission.
- Renewals will be processed in accordance with the regulations in force on the date the initial authorisation was granted.
Impact and statistics
Since its launch in 2013 until 2023, Spain issued 14,576 Golden Visas linked to real estate investments. The main beneficiaries were citizens of China, Russia, United Kingdom, United States, Ukraine, Iran, Venezuela and Mexico. In 2023, 3,273 visas were approved, with an average investment per applicant of 657,204 euros.
Investment alternatives in Spain after the elimination of the Golden Visa
With the elimination of the Golden Visa in Spain, foreign investors interested in residing or investing in the country will have to explore new options. Although this program offered a direct route to obtain residency through significant investments, there are other legal alternatives and opportunities that may be attractive. The following are the main options available:
- Entrepreneurship Visa
The Entrepreneurship Visa is designed for foreigners who wish to develop innovative business projects in Spain. It is ideal for those seeking to contribute to the country's economic and technological growth.
- Main requirements:
- Present an innovative business plan that brings added value to the Spanish economy.
- Have sufficient financial resources to implement the project.
- Obtain a favorable evaluation of the plan by the competent authorities.
This visa not only allows the applicant to reside in Spain, but also to work and manage the business directly.
- Non-Lucrative Residency
Non-lucrative residency is an option for those who wish to live in Spain without the need to work. It is especially attractive for retirees or people with passive income.
- Main requirements:
- Demonstrate a stable income of more than 28,000 euros per year (plus a certain percentage for each additional family member).
- To contract a private medical insurance valid in Spain.
- No work or professional activities in the country.
- Digital Nomad Permit
The digital nomad permit is a recent alternative that allows remote workers to live in Spain while working for foreign companies or as freelancers.
- Advantages:
- Ideal for professionals who can perform their work online.
- It allows them to enjoy the Spanish environment without having to change employers or clients.
Conclusion
The elimination of the Golden Visa in Spain represents a significant change in the country's foreign investment policy. Those interested in taking advantage of this program have until the 3rd of April 2025 to submit their applications. After this date, it will be necessary to explore other avenues to obtain residency in Spain. This change reflects a balancing act between attracting foreign investment and addressing concerns about housing affordability for local residents.
