“The golden visa”, or residence permit for investors, has been an important element of Spanish policy for years. This is because it allowed foreigners to obtain the right to stay in exchange for investment in the Iberian Peninsula. However, the Spanish government has announced a plan to abolish this programme.
What is a ‘golden visa’?
The Spanish ‘golden visa’ is a programme that allows non-EU citizens to obtain the right to reside in Spain in exchange for making a significant capital investment. It was therefore a solution for investors who wanted to reside in one of Europe’s most attractive countries while enjoying numerous benefits.
“Golden visas” were introduced in Spain in 2013. The aim of the scheme was to attract foreign investment and increase revenue to the country’s budget. Non-EU nationals who bought property worth a minimum of €500,000 could obtain the right to stay in Spain for three years. The programme also covered other forms of investment, such as the purchase of Spanish securities, bank deposits of more than €1 million and investments in Spanish companies.
Spain’s “golden visa”
The application process took around two weeks, with the key element being to make one of the eligible investments, such as:
Purchase of real estate
- The minimum value of the property is €500,000.
- It can be a residential property or an investment property.
- A property of this value must be free of encumbrances.
Equity investments
- At least €1 million in shares of Spanish equities, investment funds or bank deposits.
- Alternatively, purchase Spanish government bonds with a minimum value of €2 million.
Business projects
- Developing innovative ventures that create jobs or contribute to science and technology.
The Spanish ‘golden visa’ was an attractive option for investors interested in staying in Spain and accessing the Schengen area. The programme combined an investment opportunity with the benefits of living in one of Europe’s most attractive countries. For many, the ‘golden visa’ was also the first step on the road to permanent residence and citizenship.
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Twilight of Spain’s “golden visas”
In November 2024, the Congress of Deputies approved a bill that abolishes the ‘golden visa’ regulations. The new legislation is currently awaiting Senate approval, which is the last step before it comes into force. Spain’s decision to abolish the ‘golden visa’ is similar to that of 2023. Portugal – after more than a decade of operating such a programme.
“Golden Visa”, regulated by articles 63-67 of Law 14/2013 on supporting entrepreneurs, was intended to attract foreign capital. However, the scheme has been controversial, especially in the context of property prices and the situation in the housing market. The main objective of the abolition of the ‘golden visa’ is to provide Spanish citizens with access to affordable housing.
Brussels has been calling for an end to such programmes for years, pointing to the risks to security and transparency in the property market. In particular, the European Commission was concerned that golden visa schemes could be a tool to facilitate illegal financial transfers.
What do the new rules change?
In line with the amendments passed:
- Applications submitted prior to the entry into force of the new law will be processed in accordance with the provisions in force at the time of submission.
- Current visas and permits will remain valid for the period for which they were issued.
- Renewals of visas and permits granted before the change in the law will be decided in accordance with the previous legislation.
The new regulations are expected to come into force three months after their publication in the Journal of Laws. Although the bill is still awaiting Senate approval, all indications are that the ‘golden visa’ in its current form will cease to function. For investors who have been considering taking advantage of this scheme, it will be crucial to make a quick decision and submit applications before the new regulations come into force.
