In a significant policy shift, Spain has officially ended its Golden Visa program, closing the door on a popular residency-by-investment scheme that attracted thousands of non-EU investors over the past 12 years. The program, which allowed foreign nationals to obtain residency by investing in real estate, was formally terminated by the Spanish government this week.
The decision follows growing concerns over housing affordability and social inequality, with officials citing the program’s role in driving up property prices in key urban areas such as Madrid, Barcelona, and coastal regions.
The End of a Popular Residency Path
Introduced in 2013, Spain’s Golden Visa program quickly became one of the most sought-after residency options in Europe. It offered non-EU citizens the opportunity to live and work in Spain, and eventually apply for permanent residency and citizenship, in exchange for a minimum real estate investment of €500,000.
The program attracted tens of thousands of applicants from China, Russia, the Middle East, and Latin America—many of whom sought access to the Schengen Area and the stability of EU residency.
But as Spain’s housing crisis worsened, public and political pressure mounted. Critics argued that the Golden Visa was fueling speculation in the housing market and reducing availability for local residents.
Spanish Prime Minister Pedro Sánchez emphasized that the program had “ceased to serve its original purpose” and was now contributing to social and economic challenges, particularly in cities where affordable housing is scarce.
European Trend Toward Restriction
Spain’s decision aligns with a broader trend across the European Union. Several countries—including Portugal, Ireland, and the Netherlands—have either closed or restructured their Golden Visa schemes in recent years in response to EU pressure and growing internal scrutiny.
While Spain’s program will officially close for new applicants, those who have already received their Golden Visa or have applied before the cut-off date are expected to retain their rights under transitional provisions. However, officials have yet to clarify the full scope of these measures.
What Does This Mean for Investors?
The end of Spain’s Golden Visa creates a vacuum in the Southern European investment landscape. With one of the region’s most appealing markets now closed to Golden Visa investors, attention is quickly shifting to alternatives such as Greece, Italy, and Latvia, which continue to offer residency through investment with relatively accessible entry points.
Greece, in particular, has seen a surge in applications in recent months, especially as its real estate market remains competitively priced and its visa process well-regarded for efficiency.
Investment consultants are advising clients who were considering Spain to act fast in other markets before further changes are implemented.
Economic Impact and Unanswered Questions
While the move is being applauded by housing activists and left-leaning politicians, some experts warn that eliminating the program could have negative effects on Spain’s real estate and tourism sectors, both of which have benefited from foreign capital over the past decade.
Developers, property agencies, and international law firms are urging the government to clarify what happens next for pending applications and long-term visa holders who entered under the program.
There is also concern over how Spain will continue to attract foreign investment without offering structured pathways to residency.
The official end of Spain’s Golden Visa marks the closure of a major chapter in European investment migration history. While the move may be politically strategic and socially driven, it leaves a noticeable gap in the market for investors seeking an EU foothold through property investment.
As countries across Europe reconsider or revise their Golden Visa policies, investors are urged to explore other programs while staying informed about upcoming legislative changes.
