Spain Moves Closer to Golden Visa Ban

Spain’s Move to End Golden Visas

Spain launched its golden visa program in 2013, primarily attracting investors through real estate purchases over €500,000. This route accounts for 94% of applications under the scheme.

However, the Spanish government has now moved to phase out the real estate option, citing its impact on housing affordability. Prime Minister Pedro Sánchez emphasized the need to prioritize housing as a right rather than a speculative investment.

Spain’s Congress has approved legislation to end its golden visa program, with the ban potentially coming into effect by January 2025. Pending final approvals, applications submitted before the deadline are expected to be honored.

The reform also aims to address other investment pathways, such as company shares, bank deposits, and government bonds. To date, Spain has issued over 15,000 golden visas since the program’s inception.

Investor Response

Since the announcement, there has been a surge in interest, particularly from Chinese investors keen to secure residency before the program ends. This echoes similar patterns seen in other countries, such as Portugal, which removed real estate investments from its golden visa program in October 2023 to curb property speculation.

Other Countries Ending or Modifying Programs

Several EU countries have recently ended their golden visa schemes:

• Ireland (February 2023): Terminated its program offering residency for donations or investments of at least €500,000.

• UK (February 2022): Scrapped its scheme to combat "dirty money" from Russia.

These moves reflect a broader European trend of tightening controls on investment-based migration.

The Future of Golden Visas

While some countries like Hungary are reviving their programs, most of Europe is phasing out or reforming golden visa schemes to address ethical, economic, and security concerns. Investors considering these options are advised to act quickly and stay informed as policies continue to evolve.