In 2025, the issue of overtourism has once again come to the forefront in popular European destinations such as Greece and Spain. As millions of tourists flock to these countries each year, local governments are grappling with the economic and environmental strain that excessive tourism imposes. One controversial solution gaining traction is the elimination or restriction of the Golden Visa scheme, which critics argue has contributed to rising real estate prices and an influx of foreign investors in key tourist regions.
The Link Between Golden Visas and Overtourism
The Golden Visa programs in Greece and Spain have been immensely popular among wealthy international investors, offering residency in exchange for real estate investments. While these programs have boosted local economies and provided substantial foreign capital, they have also driven up housing prices in tourist hotspots, limiting local residents’ ability to find affordable housing and contributing to the overdevelopment of these areas.
Key Points of Contention:
1.Increased Housing Prices: Real estate investment from Golden Visa holders has led to skyrocketing property prices in cities like Athens, Mykonos, Barcelona, and Madrid.
2.Overdevelopment in Tourist Areas: Investors frequently target properties in desirable vacation destinations, resulting in a proliferation of luxury developments at the expense of local neighborhoods.
3.Decline in Long-Term Rentals: With an increase in short-term rental properties, residents in popular cities have struggled to find long-term housing options.
Measures Taken by Greece and Spain
To combat these issues, both Greece and Spain have implemented changes to their Golden Visa programs in recent years:
•Greece: The investment threshold for real estate-based Golden Visas has increased from €250,000 to €500,000 in key regions, such as Athens and the Aegean islands, to curb speculative investments.
•Spain: In 2024, Spain hinted at a potential phase-out of its Golden Visa scheme, particularly in areas experiencing housing shortages. Instead, Spain is focusing on attracting entrepreneurs through its Entrepreneur Residence Permit program.
Both countries are also exploring additional regulations to prevent oversaturation in tourist hubs while promoting more balanced investment across less-developed regions.
Alternative Solutions to Overtourism
Beyond adjusting Golden Visa policies, Greece and Spain are adopting several other strategies to combat overtourism:
•Sustainable Tourism Programs: Implementing limits on the number of daily visitors to popular landmarks like Santorini’s cliffs and Barcelona’s Sagrada Familia.
•Promoting Off-Season Travel: Encouraging tourism during non-peak months to distribute visitor numbers more evenly throughout the year.
•Investment in Rural Areas: Both countries are offering incentives for investments in rural or lesser-known destinations, helping to alleviate pressure on major cities.
Economic Implications of Golden Visa Restrictions
While the potential elimination or restriction of Golden Visa schemes may alleviate housing shortages, it could also impact local economies that have benefited from foreign investment. Golden Visa programs have generated billions in revenue for both Greece and Spain, funding infrastructure projects and boosting local industries. Eliminating these programs could lead to a slowdown in real estate sales and reduce the influx of foreign capital.
The debate over the Golden Visa scheme’s role in overtourism highlights the complex balance between economic growth and sustainable tourism. Greece and Spain must carefully weigh the benefits of foreign investment against the preservation of local communities and tourist destinations. As they implement stricter residency requirements and sustainable tourism policies, the future of their Golden Visa programs remains uncertain. For potential investors, staying informed about these regulatory changes is crucial when considering European residency options.
