Spain has officially ended its Golden Visa program and implemented a 100% tax on foreign buyers as part of its efforts to address the ongoing housing crisis. This controversial decision, announced on January 14, 2025, aims to make housing more accessible to local residents by curbing foreign investments in residential properties.
Golden Visa Program Terminated
Spain’s Golden Visa scheme, which allowed non-EU nationals to gain residency by purchasing properties worth €500,000 or more, has been a significant draw for international investors over the years. However, government officials argue that the influx of foreign buyers has inflated housing prices, particularly in major cities like Madrid and Barcelona.
100% Tax on Foreign Property Buyers
The new policy also includes a 100% property purchase tax for foreign investors. Authorities believe that this drastic measure will deter speculative investments and ease pressure on the housing market. Critics, however, warn that it could lead to a decline in overall property sales and deter economic growth linked to real estate.
A Growing Trend in Europe
Spain’s decision follows a broader European trend of tightening rules around real estate investments to prevent housing crises. Countries like Portugal and Greece have also recently adjusted their Golden Visa policies in response to affordability concerns.
The full impact of these changes remains to be seen, but it marks a significant shift in Spain’s approach to foreign investments in real estate.
Spain’s move to abolish the Golden Visa program and introduce a hefty tax on foreign buyers signals a firm stance against speculative real estate investments. Whether this policy will succeed in stabilizing the housing market or create new challenges for the economy will be closely watched by both locals and international investors.
