Spain is bringing the curtain down on its decade-long “Golden Visa” programme, a scheme that offered residency to non-EU citizens willing to invest at least €500,000 cash in property, which became popular with British and American buyers in the last few years.

Last Thursday the 14th of November the Congress of Deputies approved legislation terminating the Spanish “Golden Visa” residency by investment scheme. Starting in 2025, new visas under the programme will no longer be granted, though existing holders and pending applicants are assured of their status.

The initiative, introduced in 2013 by Mariano Rajoy’s PP government, was initially designed to attract foreign capital in the aftermath of the eurozone crisis. At first it was a flop and had to be tweaked to make it more attractive to investors. Over time, it became synonymous with wealthy individuals buying their way into Spain, often through luxury property acquisitions. Once a left-wing coalition of socialists and communists took power in 2018 the schemes days were numbered, though Socialist Prime Minister Pedro Sánchez waited until April 2024 to say as much. His government is now using an amendment to a Justice Efficiency Law (Ley para la Eficiencia de la Justicia) to repeal the Spanish Golden Visa scheme.

A limited but visible impact

According to the Ministry of Housing and Urban Agenda (MIVAU), more than 10,000 golden visas have been issued since 2016. Demand was initially dominated by Chinese and Russian investors, but in recent years British and American buyers have gained importance and risen into second and third place respectively. SPI subscribers can check out the data here: Spanish Golden Visa numbers.

Whilst the Spanish government blames Golden Visa “speculators” for driving up housing costs and forcing the demise of the scheme, I argue that the Golden Visa’s termination will have minimal effect on Spain’s broader residential property market. The bulk of housing transactions in Spain, even in high-demand areas like Madrid and Barcelona, are driven by domestic buyers and expatriates already residing in the country.

For those holding or seeking golden visas through alternative investment routes, the programme offered a spectrum of options beyond real estate. Qualifying investments included:

• Over €2 million in Spanish public debt securities.
• More than €1 million in shares or equity of active Spanish businesses.
• Over €1 million in Spanish investment funds or bank deposits.
• The creation of a business project deemed of general interest.

The versatility of the scheme attracted diverse investors, though property purchases remained the most popular route.

The winds of change

While the government has not explicitly detailed the rationale behind the programme’s termination, the timing aligns with growing scrutiny of foreign property investment in Europe. Housing affordability, a longstanding issue in major Spanish cities, may have played a role in the decision, as policymakers aim to curb speculation in the real estate market. Moreover, the Sánchez government has signalled a shift in focus, perhaps favouring other economic development and immigration strategies over investment-based residency.

Critics of the Spanish Golden Visa residency-by-investment scheme have often argued that it disproportionately benefit the wealthy while exacerbating local housing pressures. Proponents counter that the capital influx has bolstered segments of the economy and created ancillary benefits, from job creation to greater international integration. The debate is far from resolved, but Spain’s legislative pivot is a clear sign of shifting priorities.

A quiet farewell

The law’s passage was not without its quirks. As noted in parliamentary discussions, the decisive amendment was introduced “behind closed doors” in the broader bill on public justice service efficiency. The method, while procedurally valid, highlights the relatively subdued approach taken by the government on an issue that once dominated headlines.

With the bill now awaiting Senate review, Spain is poised to end a chapter that brought both investment and controversy. Whether the move will yield long-term benefits for the housing market and broader economy remains to be seen. For now, the golden glow has dimmed, leaving questions about what will replace it in the country’s immigration and investment landscape.

A trend across Europe?

Spain’s decision mirrors a broader European reassessment of golden visas. Countries such as Portugal and Ireland have also tightened or terminated similar programmes, responding to public pressure and evolving economic priorities. For Spain, the golden visa’s legacy will remain a subject of analysis—an experiment in blending economic necessity with immigration policy, now consigned to history.