The recent abolition of the Golden Visa in Spain has caused quite a stir among investors and those who wished to live in the country. This legislation, which was part of the Spanish government’s strategy to attract foreign investment, has been criticised for its effects on the property market and housing affordability.

Below, we explore all the relevant aspects of this decision, including its implications, the requirements for alternative visas and its impact on the Spanish property market.

Golden Visa abolition: what are the consequences?

The abolition of the Golden Visa will bring significant changes to Spain’s investment landscape. Many foreign investors who had backed the programme will be affected, as will the property market, which could see a fall in demand.

One immediate effect will be that it becomes harder for new investors seeking to live in Spain through this visa. However, those who already hold a Golden Visa will be able to renew it as long as they meet the requirements set out in the new Organic Law 1/2025.

This change may also affect perceptions of Spain as an investment-friendly destination, potentially prompting investors to reassess their strategies in the future. The consequences of this abolition remain to be seen, but it is clear that the approach to foreign investors is changing.

What was the Golden Visa and what was its main purpose?

The Golden Visa was introduced in 2013 as part of an initiative to attract foreign capital to Spain. Its main purpose was to encourage significant investment that could boost the country’s economy and property market.

This visa allowed investors to obtain residence in Spain by investing in property or businesses, or by purchasing public debt. The programme aimed not only to increase the flow of capital, but also to create jobs and revitalise certain areas of the country’s economy.

Over the years, the Golden Visa attracted many investors, particularly from non-EU countries, who saw Spain as an opportunity to settle and gain access to the Schengen Area. However, criticism also emerged about its impact on the property market, which has been affected by rising house prices.

Reasons for abolishing the Golden Visa

The decision to abolish the Golden Visa is based on several factors, including:

• Concerns about gentrification: The Golden Visa was controversial because it was seen as contributing to rising prices in vulnerable neighbourhoods.
• Housing affordability: Many Spanish citizens argued that the programme made it harder to access affordable housing.
• Unsustainable investment: Questions were raised about whether the investments made had genuinely benefited the local economy in the long term.

These reasons led the Spanish government to rethink its strategy for attracting foreign investors, focusing on more sustainable and balanced alternatives.

What will happen to existing Golden Visas and pending applications?

Existing Golden Visas may be renewed provided they meet the conditions set out in the new legislation. This means that those who have already obtained this visa may continue living in Spain as long as they maintain their investment.

Pending Golden Visa applications will be affected by the programme’s abolition. Once Organic Law 1/2025 comes into force, no new applications for this type of visa will be accepted.

This represents a significant change for people interested in living in Spain, who will now need to consider other available options for obtaining residence.

What impact could the end of the Golden Visa have?

The end of the Golden Visa could have a considerable impact on both the property market and the Spanish economy as a whole. Some possible effects include:

• Reduced foreign investment: The removal of the Golden Visa could discourage prospective investors who saw Spain as an attractive destination.
• Falling property prices: Without the boost in demand from foreign investors, property prices could be expected to fall.
• New alternatives for investors: The removal of the Golden Visa could pave the way for new programmes that may be more favourable and sustainable for the local economy.

It is essential to see how the situation develops and whether the Government will implement new measures to attract investment effectively.

Who could apply for this visa?

The investment visa, popularly known as the Golden Visa, was designed for foreign investors who met certain criteria. The investment categories included:

• Purchase of real estate: A minimum investment of 500.000 euros in Spanish property.
• Investment in companies: At least 1 million euros in the share capital of a Spanish company.
• Investment in government debt: A minimum investment of 2 million euros in Spanish government bonds.

The programme was open to citizens from around the world, excluding those from the European Union. However, applying involved an administrative process that included submitting documents and verifying the investment.

How do you apply for an investment visa in Spain?

For those interested in living in Spain through an investment visa, the application process involves several key steps:

• Choose an investment category: Decide between the available options, such as buying property or investing in companies.
• Gather the required documents: Prepare documents demonstrating your financial capacity and the legality of the investment.
• Submit your application: Apply through the Spanish consulate in your country or directly in Spain.
• Obtain your visa: Once your application has been approved, you can receive your visa and enjoy the benefits of living in Spain.

It is advisable to seek advice from lawyers specialising in immigration to ensure the process is completed correctly and efficiently.

Related questions about the removal of the Golden Visa in Spain

How much money do you need for an investor visa in Spain?

To obtain an investor visa in Spain, a minimum investment of 500.000 euros is required for the purchase of real estate. However, there are other options, such as investing 1 million euros in a Spanish company or 2 million euros in government debt. Each option has its own requirements and benefits, so it is important to assess which one best suits your needs.

Will the investor visa in Spain end in 2025?

Not necessarily. Although the Golden Visa has been abolished, other investment visas are still available. The new regulations will provide alternatives for investors seeking to live legally in Spain. It is essential to stay informed about legislative updates to understand the options available.

How much do you need to invest in Spain to obtain residence?

To obtain residence through an investment visa, you need to make a significant investment. As mentioned above, the minimum amount varies depending on the type of investment: 500.000 euros for real estate, 1 million euros for companies, and 2 million euros for government debt. It is essential to plan this investment carefully to meet all the legal requirements.

How much do you need to invest in Spain to get a visa?

The investment required to obtain an investment visa in Spain depends on the option you choose. Each category has a specific amount, and it is vital to meet the required minimum to apply for the appropriate visa. You should also take into account other costs associated with the application process.