Applications for Spain's Golden Visa Program have surged as the deadline for its abolishment approaches. Since the announcement of its termination on January 3rd, 2025, published in the Official State Gazette (BOE), the program has seen a significant increase in interest from non-EU nationals.
Applicants have until April 3rd, 2025, to submit their requests under the program, which offers residency in Spain (including the Canary Islands) in exchange for substantial investments, most notably through property purchases valued at €500,000 or more.
Legislative Path to Abolishment
The decision to end the Golden Visa Program was cemented through Organic Law 1/2025, following approval by the Spanish Congress of Deputies in December 2024, where the measure narrowly passed with 177 votes in favour and 170 against.
The Senate initially vetoed the bill on December 2nd, creating a brief period of uncertainty. However, the Congress ultimately overcame this hurdle, and the law was officially enacted on January 3rd, 2025.
The legislation specifies that the program will officially conclude three months after its publication in the BOE, giving prospective investors a limited window to finalise their applications.
Housing Crisis Influences Decision
The move to abolish the program is part of Spain's broader effort to tackle its ongoing housing crisis. President Pedro Sánchez has highlighted the need to prioritise housing as a fundamental right rather than a speculative investment opportunity.
Critics of the Golden Visa Program have long argued that it exacerbates rising property prices, making housing increasingly unaffordable for residents.
Launched 12 years ago in 2013, the Golden Visa Program has been a significant economic driver, attracting high-net-worth individuals from outside the European Union. Despite its benefits, such as generating considerable revenue for the real estate market, the program faced mounting opposition due to its perceived role in inflating property values and limiting access to affordable housing.
Economic Contributions and Recent Surge
In its more than a decade of operation, the Golden Visa Program has drawn substantial investments. In the first ten months of 2024 alone, Spain granted 780 golden visas, with an average investment of €657,204 per applicant, showcasing the program’s continued popularity among international investors.
Since the BOE announcement, firms specialising in real estate investment advice, such as Golden Partners, have reported a dramatic rise in inquiries and applications as investors rush to take advantage of the program before its closure.
Final Deadline and Implications
The deadline for applications marks the end of an era for one of Spain's most prominent residency-by-investment schemes. While this may dampen certain sectors of the real estate market, the government views the abolishment as a necessary step to address long-term housing challenges.
Moving forward, Spain's focus will likely shift towards policies aimed at ensuring affordable housing and reducing speculative pressure on the property market, as the country navigates the complexities of balancing economic growth with social equity.
