Spain is set to officially abolish its controversial Golden Visa program, which has allowed numerous non-EU nationals, particularly from Britain, to gain residency through property investments since its inception in 2013. The decision, made by the Congress of Deputies—Spain's lower house of parliament—marks significant changes to immigration policy, primarily impacting those who have utilized this scheme to relocate post-Brexit.
After extensive parliamentary debate, the proposal to terminate the Residency by Investment scheme was passed recently with 177 votes for and 170 against, according to reports from Schengen.News. The popular route to acquire a Golden Visa typically involved purchasing property worth over €500,000, which appealed to many British retirees seeking to make Spain their permanent home.
The program faced obstacles when the Spanish Senate initially vetoed the abolition on December 2, arguing a lack of adequate legislative technique and planning. This veto was pushed by the Popular Party (PP), which holds the majority in the Senate. The bill was then returned to the Congress, where it was eventually approved following pressure from the ruling Socialists to integrate it within their new Judicial Efficiency Law.
Despite objections, the new regulations are poised to take effect after being published in the Official State Gazette (BOE). April 3, 2025, has been set as the final date for individuals to submit applications under the Golden Visa scheme, marking the end of this pathway to residency for many foreign nationals.
Some British citizens who purchased properties to qualify for the Golden Visa may now reconsider their investments. Nicky Kelvin, Editor at Large at The Points Guy, suggested, "Some Brits might be put off by the change and choose to invest in Golden Visa programs in other countries, such as Greece or Italy." This highlights the potential shift of interest away from Spain's real estate market to other European nations offering similar investment citizenship opportunities.
Critics of the Golden Visa program have long argued it has bloated property prices, exacerbated housing scarcity, and made it increasingly difficult for locals to secure affordable housing. The critics contend the termination of the program will do little to resolve Spain's housing crisis and might be more symbolic than substantive.
Reacting to the shifts, Eduardo Pérez Mazuecos from Marbella Solicitors Group Law Offices commented, "From the point of view of our many expert agents, this explanation of the measure is not reasonable," indicating skepticism about whether the government's cancellation of the Golden Visa will translate to tangible benefits for Spanish citizens.
The amendments to the residency program follow several months of legislative challenges and public scrutiny surrounding the program's impact on local housing issues. The government's intention is to pivot the focus toward creating more accessible residency pathways aligned with constitutional rights to housing. This objective has ignited debate over the efficacy and potential repercussions of halting the scheme.
Supporters of the original program viewed it as beneficial, contributing to Spain's economy through foreign investment, particularly during the challenging economic climate exacerbated by the COVID-19 pandemic. Yet, the strong opposition led the government to reassess the sustainability of maintaining such schemes amid rising housing costs and increasing criticism from local populations.
Following the bill's approval, the government is now faced with the challenge of managing public sentiments, particularly from loyal supporters of the program, as the transition period approaches its culmination. The Socialists aim to maintain housing accessibility for all Spaniards, yet the validity of testimonials from British expatriates and real estate professionals continues to overshadow the discourse.
While existing Golden Visa holders will retain their residency rights upon renewal, the program's termination raises questions about the future of similar investment migration strategies within Europe. Experts now suggest prospective investors may start exploring alternative avenues, such as the Non-Lucrative Visa, which could cater to those eyeing long-term stays without the hefty investment requirements.
With the official end date of April 3, 2025, closing fast, many individuals seeking residency through investment must now navigate new avenues if they wish to settle in Spain. The government hopes to realign these policies to strike a balance between encouraging foreign investment and safeguarding the availability of affordable housing for its citizens.
Spain's Golden Visa program, once hailed as a streamlined access point for residency, now finds itself on the brink of obsolescence as the country grapples with broader socioeconomic challenges and legislative reform initiatives.