Spain's government has officially announced the end of its Golden Visa program, a scheme that allowed non-European Union nationals to gain residency by making significant investments in the country. The Golden Visa program will cease on April 3, 2025, post the publication of Organic Law 1/2025 in the official gazette of the Kingdom of Spain. The three-month transition period gives investors a final chance to apply.

The Golden Visa Program: A Brief Overview

Introduced in 2013 under the government of Mariano Rajoy, the Golden Visa scheme required non-EU investors to contribute a minimum of €500,000 to Spanish real estate or meet other financial thresholds. While the program attracted substantial foreign capital, with an average investment of €657,204 per applicant in 2024, it also faced criticism for exacerbating Spain’s housing crisis.

Prime Minister Pedro Sánchez emphasized the government's dedication to housing rights, stating, "Housing is not a speculative business but a fundamental right." This aligns with broader efforts to make real estate more affordable and accessible for residents.

Legislative Journey to Abolition

The Congress of Deputies approved the law to abolish the Golden Visa program in December 2024, with 177 votes in favor and 170 against. Despite an initial veto by the Senate on December 2, 2024, the legislation eventually passed, becoming effective in January 2025. The three-month transition period ensures that pending applications filed before April 3, 2025, will still be processed.

Renewals for visas granted before the law’s enforcement will remain valid under the original regulations, ensuring that existing investors are not immediately impacted.

Economic and Social Impacts

Though the Golden Visa program facilitated foreign investments in real estate, public debt, and business ventures, its overall effectiveness has been questioned. Only 451 visas were issued in 2022—a 50% drop from the previous year. Critics argue that the program's impact on housing prices, coupled with its low output, outweighed its benefits.

The visa also allowed investments beyond real estate, such as purchasing €2 million in public debt or €1 million in shares of Spanish companies. It offered pathways for entrepreneurs who developed accredited business projects in Spain. However, the rising housing costs fueled public and political dissatisfaction, prompting the decision to discontinue the program.

A Global Trend

Spain’s move follows similar actions by countries like Portugal and Canada, which have also eliminated their Golden Visa schemes due to economic and housing market concerns. The global trend reflects increasing scrutiny over residency-for-investment programs, with governments prioritizing economic balance and housing equity.

Final Opportunity for Investors

Prospective investors have until April 3, 2025, to secure residency through the Golden Visa program. After this date, Spain will no longer provide residency pathways tied to financial investments. While the program’s closure marks the end of an era, it signals a shift in focus toward sustainable economic and housing policies.