In a significant shift in immigration and economic policy, the Spanish government has officially ended its Golden Visa programme—a popular residency-by-investment route that allowed wealthy foreigners to gain residency by investing in Spanish real estate. The move, announced in early April 2025, comes after 12 years of operation and mounting criticism that the programme has driven up housing prices and made affordable housing increasingly scarce for local residents.
The decision is part of Spain’s broader efforts to curb speculative investment in the real estate sector and prioritise access to housing for citizens, particularly in major cities like Madrid, Barcelona, and Valencia, where property prices have soared in recent years.
What Was Spain’s Golden Visa Programme?
Launched in 2013, Spain’s Golden Visa scheme allowed non-EU nationals to obtain Spanish residency by investing at least €500,000 in real estate. The programme quickly gained popularity, attracting thousands of applicants, especially from countries such as China, Russia, India, and the Middle East.
Golden Visa holders were granted:
- The right to live and work in Spain
- Visa-free travel across the Schengen zone
- Pathways to permanent residency and eventual citizenship (subject to conditions)
However, unlike standard residency applicants, Golden Visa holders were not required to reside in Spain full-time—only to visit at least once a year—leading critics to label the programme as a “pay-to-passport” model that offered legal residency without local commitment.
Why Has Spain Ended the Programme?
Spain’s Prime Minister Pedro Sánchez announced the end of the programme, stating that housing is a basic human right, not a speculative commodity. He argued that Golden Visa-fuelled demand has exacerbated the housing crisis, particularly in urban centres and popular tourist regions.
“More than 94% of Golden Visas granted were linked to real estate purchases. This contributed to an artificial rise in housing prices and gentrification of working-class neighbourhoods,” Sánchez said.
The government is now prioritising policies aimed at increasing affordable housing, regulating rental prices, and limiting non-resident ownership in high-demand areas.
Who Will Be Affected?
The cancellation affects new applicants only. Those who have already obtained their Golden Visas or are in the process of renewal will not lose their residency rights, but they will no longer be able to apply for further investment-based residency through real estate.
Investors who were planning to apply this year are being advised to explore alternative residency routes, such as:
- Entrepreneur or Startup visas
- Non-lucrative visas for retirees or those with independent income
- Job or student visas for those seeking to reside long-term with local ties
Real estate developers and immigration consultants say they are fielding calls from clients unsure how the cancellation will impact their future plans.
Indian Investors Among Top Applicants
India ranked among the top 10 countries whose citizens took advantage of Spain’s Golden Visa programme. Wealthy Indian families often used the visa route to secure EU residency, diversify investments, and access education opportunities for children.
The announcement is expected to slow Indian interest in Spanish property investments, particularly in urban and coastal areas that were previously marketed as “visa-qualified” locations.
Real estate analysts in Mumbai and Delhi are now advising clients to shift focus to alternative countries like Portugal (though its own golden visa is under revision), Greece, or the UAE.
A Broader European Trend
Spain is not alone in revisiting or cancelling its Golden Visa programme. In recent years, several EU countries have come under pressure from both citizens and EU policymakers to reform or discontinue residency-for-investment schemes that are seen as driving inequality.
- Portugal significantly scaled back its golden visa benefits in 2023, excluding Lisbon and Porto from eligible real estate zones.
- Ireland shut down its Immigrant Investor Programme in early 2023.
- Greece raised its real estate investment threshold in response to housing market pressures.
These changes reflect growing scrutiny over the social and economic impact of wealthy foreigners buying up residential property, often pricing out locals and leaving urban homes empty for most of the year.
The European Commission has also raised concerns that such programmes may pose security risks, enable money laundering, and create unfair advantages for the wealthy.
Impact on Spain’s Real Estate Market
The real estate sector in Spain has mixed reactions to the announcement. While housing advocates welcome the move as a step toward curbing speculation and improving affordability, developers warn of potential investment slowdowns—particularly in high-end property markets.
“While foreign buyers were only a segment of the overall market, their influence on pricing in key districts was disproportionate,” noted a real estate analyst in Barcelona. “With this change, we may see price stabilisation and more room for local buyers.”
There are also concerns that tourism-linked cities, already facing over-tourism and housing shortages, will need complementary reforms to truly fix affordability issues.
Legal and Financial Implications for Investors
Foreign investors who have already purchased properties and obtained visas under the previous scheme will retain their residency rights, provided they continue to meet renewal conditions.
However, they may now face:
- Reduced resale value for properties once advertised as “Golden Visa eligible”
- Fewer new buyers in the investment market
- Changing tax and ownership regulations under Spain’s new housing reforms
Law firms handling immigration and real estate transactions are advising clients to seek updated guidance, particularly if they intend to sell or rent properties acquired under the old system.
Final Word
Spain’s decision to scrap its Golden Visa programme marks a turning point in Europe’s approach to wealth-based immigration. After more than a decade of promoting real estate-led residency pathways, the country is pivoting to housing-first policies designed to protect its citizens and cities from the consequences of speculative investment.
For global investors, this signals the end of one of Europe’s most popular golden visa routes—and a need to reconsider residency plans based not only on opportunity, but on long-term sustainability, social responsibility, and legal transparency.
As Spain works to balance foreign interest with domestic welfare, the message is clear: residency cannot come at the cost of local communities.
