Spain may end its Golden Visas in January 2025 - What you need to know

The Spanish residency-by-investment programme has been one of the most successful Golden Visas in the EU. The country issued 11,464 golden visas since its launch, with nearly 2,500 in real estate investment visas given in 2022 alone.

However, Spain's Congress of Deputies has already approved a bill that will terminate the Golden Visa and the end of the programme might come as soon as January 1st, 2025.

What's changing?

Spain may officially end its Golden Visa residency programme on 1 January 2025. The decision comes after months of political deliberation and concerns about housing affordability in major Spanish cities.

Prime Minister Pedro Sanchez has been vocal about the programme's impact. In April 2024, he highlighted that 94 per cent of approved visas came from real estate investments in 'stressed' property markets like Madrid, Barcelona, Málaga, and Valencia.

The legislative journey is not entirely straightforward. While the bill has passed through the Congress of Deputies, it must still undergo the Senate's review. On 2 December 2024, the Spanish Senate vetoed the Judicial Efficiency Bill passed by Congress of Deputies to terminate the programme.

The Popular Party (PP), holding a majority in the Senate, successfully blocked the legislation but this veto is not a definitive defeat. The Spanish Socialist Workers' Party (PSOE) and its coalition partners still retain the power to override the Senate's decision.

Senators could potentially delay implementation by up to two months, which might push the effective date to early May 2025. Congress of Deputies. However, Congress can reinstate the bill during plenary sessions scheduled for December 10-12 or 17-19.

If Congress overrides the veto, the law could be published in the Official State Bulletin by early January, potentially taking effect around April 2025.

Why is Spain ending its Golden Visa programme?

The decision to terminate Spain's Golden Visa programme stems from mounting pressure on the country's housing market. Government data reveals that foreign investment through the programme has contributed to significant property price inflation in key metropolitan areas.

Between 2013 and 2023, property prices in Barcelona increased by approximately 45%, whilst Madrid saw rises of over 40%. Valencia and Málaga experienced similar trends, with local residents increasingly priced out of their own cities. The Spanish government argues that the Golden Visa programme has exacerbated this housing crisis by attracting speculative investment rather than genuine residency.

Additionally, the European Union has been applying pressure on member states to review their citizenship and residency-by-investment programmes. The European Commission has raised concerns about security risks, money laundering, and tax evasion associated with these schemes. This broader EU scrutiny has influenced Spain's decision to align with the bloc's evolving stance on Golden Visa programmes.

Impact on current Golden Visa holders

Existing Spanish Golden Visa holders need not worry about their current status. The proposed legislation includes grandfather clauses that protect those who have already obtained residency through the programme. Current visa holders will retain their rights to:

• Renew their residency permits according to existing timelines

• Apply for permanent residency after five years of continuous legal residence

• Pursue Spanish citizenship after ten years (or two years for certain nationalities)

• Include family members under family reunification provisions

However, the renewal process may become more stringent, with authorities potentially requiring additional documentation to prove ongoing compliance with residency requirements.

Can investors still apply for the Golden Visa in Spain?

Thankfully, yes, investors can still apply because even if the bill terminating the programme is passed, the law will not apply retroactively. This means investors who submit applications before 1 January 2025 can still obtain Spanish residency under the current rules.

Investors still have a brief window to apply through several investment routes:

• Purchasing real estate worth over €500,000

• Buying shares in Spanish companies or investment fund units starting from €1,000,000

• Opening a bank deposit of at least €1,000,000

• Investing in government bonds from €2,000,000

Timeline for last-minute applications

Given the uncertain political timeline, prospective investors should act swiftly. The application process typically takes 2-3 months from submission to approval, assuming all documentation is complete. Key steps include:

1. Securing the qualifying investment (property purchase, bank deposit, or share acquisition)

2. Obtaining required documentation, including criminal background checks and health insurance

3. Submitting the application to Spanish consulates or immigration offices

4. Attending biometric appointments and interviews if required

Legal experts recommend beginning the process immediately, as any delays could result in missing the programme entirely.

What are the best Golden Visa alternatives for investors looking for EU residency?

With Spain's programme potentially ending, investors are exploring alternative pathways to European residency. Each remaining option offers distinct advantages and investment thresholds.

Portugal Golden Visa

Though Portugal has removed the real estate investment option, its golden visa programme remains the most attractive in the EU. With a minimum investment of €250,000, it provides a viable path to citizenship after five years of legal residency. It also allows for family reunification.

The programme now focuses on investment funds, venture capital, and job creation in low-density areas. This shift aligns with Portugal's goal of promoting economic development outside major urban centres whilst maintaining the programme's attractiveness to international investors.

Greece Golden Visa

Greece continues to offer attractive residency options, with investment minimums around €250,000, typically through real estate purchases. However, recent changes have increased the threshold to €800,000 for properties in central Athens, Thessaloniki, and popular islands like Mykonos and Santorini.

The Greek programme offers permanent residency from day one, with no physical residence requirements. This makes it particularly appealing for investors seeking EU access without relocating immediately.

Malta residency programmes

Under the Malta residency programme, investors can rent or purchase property, make donations, and pay fees to the government. The Malta Permanent Residence Programme (MPRP) requires a government contribution of €68,000, plus property investment and administrative fees.

Malta's programme offers a pathway to citizenship after five years, making it one of the faster routes to an EU passport.

Cyprus residency options

In Cyprus, investors can still obtain residency by purchasing real estate, company shares, or securities in investment funds, with a minimum investment of €300,000. The programme grants permanent residency and allows for citizenship applications after seven years of continuous residence.

Tax implications and planning considerations

The potential end of Spain's Golden Visa programme has significant implications for tax planning strategies. Investors who have structured their affairs around Spanish residency may need to reconsider their approach, particularly regarding double tax treaties and inheritance planning.

For those considering alternative programmes, it's crucial to understand each country's tax regime. Portugal offers attractive tax benefits through its Non-Habitual Resident (NHR) programme, whilst Malta provides favourable treatment for non-domiciled residents. These considerations should factor heavily into any investment decision, particularly for high-net-worth individuals with complex international structures.

Long-term implications for European Golden Visas

Spain's decision reflects a broader trend across Europe, where EU countries are reassessing their Golden Visa programmes. Ireland and the UK have already terminated their schemes, whilst Portugal has significantly restricted its offerings.

This trend suggests that remaining programmes may become more competitive and potentially more expensive. Investors considering European residency should act decisively, as the window of opportunity for accessible Golden Visa programmes continues to narrow.

How we can help

The rapidly changing landscape of European residency programmes requires expert navigation and strategic planning. At International Wealth Ventures, we understand the complexities facing international investors and provide comprehensive guidance tailored to your specific circumstances.

Our services include detailed analysis of alternative citizenship by investment programmes, tax-efficient structuring advice, and ongoing support throughout the application process. Whether you're seeking European residency for lifestyle, business, or succession planning purposes, our team can help you identify the most suitable pathway.

We also provide comprehensive retirement planning services for those considering European residency as part of their long-term lifestyle strategy. Our expertise extends to investment portfolio management, ensuring your assets are optimally positioned regardless of your chosen residency jurisdiction.

Don't let the changing regulatory environment catch you unprepared. Contact International Wealth Ventures today to discuss your options and secure your pathway to European residency before opportunities disappear. Our experienced advisors are ready to help you navigate these complex decisions and implement strategies that protect and enhance your international mobility and wealth.

About the Author

Angela Taylor — Investment Analyst — Spain & Portugal. Angela is an investment analyst covering Southern European residency programmes and tax-efficient savings for British expats in Spain, including Prudential International compliant bonds.