Spain Ends Golden Visa Policy

Golden Visa phase-out in Spain is on the horizon, as Prime Minister Pedro Sanchez announced his government’s intention to abolish this administrative convenience on Monday, April 8. Established in 2013, the Spanish Golden Visa has offered non-EU nationals residency in Spain in return for a minimum investment of €500,000 (US$ 540,000) in real estate, or by investing at least two million euros (US$ 2.16 million)  in government bonds or Spanish businesses, though these were less common options.

Owing to its favorable climate, appealing lifestyle, and relatively low cost of living, Spain has emerged as a highly sought-after destination for wealthy international individuals. Over the decade, Spain has granted 14,576 Golden Visas, primarily benefiting citizens from China and Russia, but also Iran, the United States, the United Kingdom, Egypt, Mexico, and Venezuela. The demand for Golden Visas has seen a significant increase in recent years, with 5,290 visas issued between 2022 and 2023 alone. Barcelona, Madrid, Malaga, Alicante, and Valencia were the favored cities for golden visa issuing, concentrating as much as 90 percent of the investments.

According to Sanchez, the decision to terminate the Golden Visa program stems from the challenges Spanish citizens face in the housing market, exacerbated by speculative practices. In recent years, the Golden Visa has drawn hundreds of Latin American investors to Madrid, mostly from Mexico, but also Colombia, Venezuela, Chile and Argentina, earning the Spanish capital the nickname ‘New Miami’.

Golden Visa across Europe

The Golden Visas policy in Europe has been significantly impacted by the Russian-Ukrainian conflict. In the aftermath of the Ukraine invasion, several European nations, including Ireland, have discontinued these visa programs, primarily as they benefited Russian millionaires and oligarchs.

In the Mediterranean, Italy, Greece, and Portugal continue to offer Golden Visa options. Similar to Spain, Italy grants residency for a minimum investment of €500,000, offering additional perks such as family reunification, a special tax regime, and the possibility of Italian citizenship after ten years of residency. Greece and Portugal have also maintained their Golden Visa programs, albeit with stricter conditions. Greece has increased its minimum investment requirement from €250,000 to €500,000 in certain regions, with considerations to further escalate it to €800,000 (US$ 864,000). Conversely, Portugal has retained its €250,000 minimum investment threshold but recently excluded real estate transactions from its program to combat speculative pricing in the housing market.