ou may have seen the headlines: Spain has officially ended its popular "Golden Visa" programme, specifically the route granting residency through significant property investment. This marks a significant shift after nearly 12 years. At Ashworth & Drake, we know changes like this can raise questions for international clients considering Spain for their property purchase. Let's break down what's happened and what it means for you.
What Was the Golden Visa?
Launched back in 2013 during an economic downturn, the Golden Visa aimed to attract foreign capital. For property buyers, it offered Spanish residency to non-EU nationals who invested at least €500,000 in real estate (either a single property or multiple properties reaching this value). This visa was renewable, didn't require constant physical presence in Spain, and importantly, granted freedom of movement across the Schengen Area.
Modern white Spanish Villa in Marbella
What's Changed (As of April 2025)?
Effective April 3rd, 2025, the Spanish government officially repealed the articles of the law that enabled residency permits specifically linked to property investment. The government cited pressures on the housing market, particularly in areas popular with foreign buyers, as a key reason for the change, following announcements made over the past year.
Putting it in Perspective:
While the Golden Visa certainly attracted attention, data shows that between 2013 and 2023, just under 15,000 such visas were granted for property purchases. Even with a peak in 2023 (around 3,270 visas), these purchases represented a relatively small fraction of the overall Spanish property market. In 2023, purchases over €500k accounted for roughly 9.7% of all foreign acquisitions, with only about half of those buyers being non-EU nationals potentially eligible for the Golden Visa.
The key areas attracting these investments have been Barcelona, Madrid, Málaga, Alicante, the Balearic Islands, and Valencia.
What if You Applied Before the Change or Need to Renew?
Crucially, the government has clarified:
Pending Applications: If you submitted your Golden Visa application before the new regulation came into force (April 3, 2025), it will still be processed under the old rules.
Renewals: Existing Golden Visa holders will have their renewals processed according to the regulations in place when their initial visa was granted, provided the investment is maintained.
The Bigger Picture & Future Watchpoints:
Spain isn't alone in re-evaluating these schemes. Countries like Portugal, Ireland, and the UK have also tightened or ended similar visas. Others, such as Malta, Greece, and Italy, continue to offer variations.
It's also worth noting potential future changes mentioned by the Spanish government, though details remain unconfirmed:
- Increased Taxes for Non-Residents: There have been announcements about potentially significant tax increases for non-resident foreign buyers, but specific legislation has not yet been passed (as of April 10, 2025).
- Proposed Purchase Restrictions: A political party (ERC) has proposed restricting property purchases by non-residents without prior residency, but this is currently just a proposal, not law.
We will continue to monitor these developments closely.
Striking New Built Villa in Marbella
What Does This Mean for Buying Property in Spain?
The end of the Golden Visa for property investment closes one specific pathway to residency for non-EU buyers. However, it's vital to understand:
- Buying is Still Possible: Foreign nationals (both EU and non-EU) can absolutely still purchase property in Spain. The fundamental process of buying remains unchanged.
- Other Residency Options Exist: Spain offers various other visa routes for non-EU citizens seeking residency, such as the Non-Lucrative Visa (NLV), Digital Nomad Visa, work permits, and family reunification options. These are unaffected by the Golden Visa change.
Navigating the Future
While the Golden Visa chapter for property has closed, Spain remains a highly desirable location for international buyers seeking sunshine, culture, and lifestyle. The key is understanding the current regulations and exploring the residency pathways that best suit your circumstances.
At Ashworth & Drake, we remain committed to connecting you with the best properties and the most knowledgeable local agencies. We, alongside our network of legal and financial experts, can help you navigate the Spanish property market confidently, whatever your residency goals may be.
Disclaimer: This information is based on reports as of April 10, 2025, and is intended for general guidance. Regulations can change. Always seek personalized legal and financial advice from qualified professionals in Spain before making any investment decisions.
