Cancellation of Golden Visa in Spain

Spain’s Golden Visa program, a popular pathway for foreign investors to secure residency, is set to vanish permanently on April 3, 2025. This abrupt termination marks the end of an era for one of Europe’s most flexible residency-by-investment schemes. Below, we explore the implications of this decision, the rationale behind it, and the alternatives available for those seeking residency in Spain.

What Is the Golden Visa?

Introduced in 2013, Spain’s Golden Visa allowed non-EU nationals to obtain residency by making qualifying investments in the country. Options included:

• Real estate investments (minimum €500,000).
• Capital transfers (€1 million in Spanish company shares or bank deposits).
• Business investments (€1 million in Spanish public debt or job-creating ventures).

The program’s standout feature was its minimal physical presence requirement: holders could renew their residency by visiting Spain just once annually, without needing to become tax residents. This flexibility made it particularly attractive to global investors seeking mobility.

Why Is Spain Cancelling the Golden Visa?

The Spanish government cites three primary reasons for scrapping the program:

1. Housing Crisis: Soaring property prices in cities like Madrid and Barcelona have made housing unaffordable for many locals. Critics argue that foreign investors, particularly Golden Visa holders, exacerbate speculation and price inflation.
2. EU Alignment: Neighboring countries like Portugal have already terminated similar programs. Spain’s decision aligns with broader EU efforts to curb investment-driven residency schemes, which are seen as favoring wealth over equitable economic growth.
3. Tax Reforms: Plans to introduce higher taxes for non-resident property buyers aim to stabilize the housing market and prioritize local access to homes.

By eliminating the Golden Visa, Spain hopes to address systemic inequality and redirect investment toward sectors that benefit residents directly.

Who Can Extend Their Golden Visa?

Existing Golden Visa holders need not panic — those who applied before April 3, 2025, will retain their residency rights. However, renewal conditions vary based on the investment type:

• Real Estate Investors: Can renew indefinitely, provided they retain ownership of the property.
• Shares, Bonds, or Public Debt Investors: Will lose residency eligibility upon expiration of their current permit, with no renewal options.

This distinction underscores the government’s focus on long-term, tangible investments like real estate over liquid financial instruments.

Alternatives to the Golden Visa

While no program matches the Golden Visa’s convenience, Spain offers other residency routes:

1. Non-Lucrative Residency

• Requirements: Proof of sufficient financial means (€28,800 annually) and private health insurance.
• Drawbacks: No work permitted in Spain; applicants must spend at least 183 days per year in the country.
• Key Difference: Unlike the Golden Visa, the Non-Lucrative Residency demands physical presence and blocks employment.

2. Digital Nomad Visa

• Eligibility: Remote workers employed by non-Spanish companies or freelancers with international clients.
• Benefits: Fast processing (20 days), renewable for up to 5 years, and a lower income threshold (€2,400/month).
• Key Difference: Requires tax residency in Spain, unlike the Golden Visa’s “visit once a year” model.

3. Startup Visa

• Purpose: Targets entrepreneurs launching innovative businesses in Spain.
• Requirements: A viable business plan endorsed by Spain’s Entrepreneurial Law and proof of financial sustainability.
• Benefits: Grants residency for 1–3 years, extendable if the business succeeds.
• Key Difference: Focuses on active economic contribution rather than passive investment.

Even after the Golden Visa program ends, Spain remains a desirable destination. However, future applicants will face stricter requirements, such as longer residency periods or active economic participation.

The Golden Visa’s termination reflects Spain’s commitment to addressing housing inequality and aligning with EU norms. While its loss is significant, alternatives like the Non-Lucrative Residency or Digital Nomad Visa offer new opportunities for those willing to adapt. For current Golden Visa holders, maintaining compliance is critical to preserving residency rights.

Navigating Spain’s evolving immigration landscape requires expert guidance. The professional legal team at Navarra Associate can review your specific situation, recommend the most suitable alternative depending on your objectives, and simplify the paperwork from preparation of documents to submission. We ensure compliance with Spanish regulations and maximise your chances of a successful application.

Let our experienced advisors demystify the process and secure your future in Spain — contact us today to begin your journey.