Spain will end the residency option through real estate investment in its Golden Visa Program. This program, available to foreign investors since 2013, will conclude on April 3, 2025.
Spain’s Golden Visa program is undergoing changes. It’s been a vital Plan B for wealthy investors seeking residency and citizenship in Europe. This topic is very popular in the industry right now.
Is Spain Completely Ending Its Golden Visa Program?
First, it’s important to note that Spain is not fully ending its Golden Visa program.
Spanish Prime Minister Pedro Sánchez mentioned that removing the real estate investment option from the Golden Visa program is meant to change housing from a speculative trade into a fundamental right.
This statement brings to mind Portugal, where a similar policy change happened before.
While the program is moving away from the real estate sector, this indicates that it will continue with other investment options.
A Critical Date for Spain’s Popular European Gateway: The Golden Visa
Spain’s Golden Visa program, which brings in over €1 billion a year, will no longer accept real estate investments. Initially serving as a doorway to Europe for investors mainly from the USA, China, and Russia, this major policy move tries to stop speculation in the housing market but has left investors uneasy. Now, focus is turning to other locations: Portugal, Malta, and Greece are becoming well-known new hubs, with Greece providing Schengen access for investments as low as €250,000. Spain’s historic ruling has the potential to completely alter the direction of the investment migration sector.
Starting April 3, 2025, non-EU citizens can’t gain residency in Spain or freedom of movement in Europe just by buying real estate. This marks the end of a popular pathway to European residency.
Is Spain’s Golden Visa Program Still Valid?
The law, passed by the Senate and Parliament and published in the Official Gazette on January 3, ends the real estate investment option in the Golden Visa program. This program allows non-EU citizens to get residency if they invest or buy property.
Following the removal of the real estate option from Spain’s Golden Visa Program, it remains unclear which alternative will be introduced. We will keep you updated as soon as official announcements regarding developments and changes in the program are made.
We will explore these options in the following sections of this article.
Why Did the Spanish Government Make This Decision?
The Spain Golden Visa Program has boosted foreign investment since its launch in 2013. This has helped Spain’s economy and welcomed people from various cultures.
The program offered key benefits to applicants and their families. These included visa-free travel in the Schengen Area, freedom of movement, and flexible business options.
Critics say the program raised housing costs for local residents.
These concerns were key in the government’s choice to remove the real estate investment option from the program.
What Is the Deadline for Real Estate Investors?
The critical deadline for investors looking to buy real estate in Spain under the Golden Visa program is April 3, 2025. Under this regulation, investors must complete the property acquisition process by the last week of March to qualify.
Will There Be Any Changes for Existing Applicants and Current Permit Holders?
Those who apply before the law takes effect will still be eligible for the Golden Visa, as stated.
Spain’s Golden Visa and Investor Profile in Numbers
The government’s press release states that most investors in the Golden Visa Program come from these countries:
- China
- Russia
- United Kingdom
- United States
- Ukraine
- Iran
- Venezuela
- Mexico
Key Data on Golden Visa Beneficiaries
- 96% of applicants chose real estate investment.
- Investors granted 94% of Golden Visas through property investments in major cities.
- Since 2013, about 15,300 applicants and nearly 35,000 family members have received residency.
- Investors issued more than 6,200 Golden Visas through real estate investment.
- In 2023, foreign buyers purchased over 87,000 properties in Spain.
- This figure represents 15% of total real estate transactions in the country.
- The number of investors from the UK and the US significantly increased after Brexit.
- From 2021 to 2023, Golden Visa property purchases made up 5.3% of Barcelona’s yearly home sales.
Effect of Program Change on Spain’s Real Estate Market and Investor Actions
Many prospective investors who saw Spain’s Golden Visa program as the best method to obtain residency in the EU and start a life there will be greatly impacted by this decision. The policy change, which was abruptly announced in early 2024, has caused investors to reconsider their alternatives and has brought attention to a significant change in the global real estate market as well as the idea of investment-based immigration in general. Property investment continues to be the most popular alternative, even if Golden Visa programs usually provide a variety of investment possibilities, which may have an impact on real estate values. Real estate specialists stress that Spain only receives about 2,000 applications a year, which is a negligible amount in a country of 48 million people, and that this number by itself has no impact on the property market.
The Search for a Plan B in Europe
According to a report by Spanish state broadcaster RTVE, after the Spanish government announced its plan to end the Golden Visa program in 2024, Chinese investors rushed to the country to purchase real estate.
Similarly, Americans are already considering their next potential destination. For those seeking an alternative to Spain, Greece has emerged as the most popular option among American investors evaluating their choices.
Looking at internet user behavior data, there has been a 24.9% increase in “Residency by Investment” searches on Google in the U.S. over the past month. Additionally, searches for “Greece Golden Visa” surged by 50.4% in just two months.
Alternative Destinations for Golden Visa: Early Investment Shift to Greece
This increase is likely driven by Americans rushing to secure Spanish residency before the program ends. However, Greece’s Golden Visa program stands out as a more affordable alternative compared to Spain’s, with a minimum investment requirement of $264,208.
Critics point out that Spain’s housing supply is mostly in popular areas. This focus can make it hard to find affordable housing.
Francisco Iñareta from Idealista says we can’t say the Golden Visa program caused Spain’s housing crisis.
However, the increasing demand for housing and insufficient supply have led to rising prices, which suggests that this investment program may indirectly impact the purchasing power of local residents.
Greece: The Lowest and Only Available Option For Traditional Real Estate Investors
US citizens are now looking at Greece. It’s one of the friendliest Golden Visa spots. Once Spain closes its doors, interest is likely to increase. This will make Greece an appealing spot for early investment.
Greece has one of the quickest residency processes in Europe with its Golden Visa program.
Residency used to require an investment of just €250,000, one of Europe’s lowest. Now, that amount has gone up.
One big advantage of the Greece Golden Visa is that holders don’t need to live in Greece all the time to keep their visa.
The Program Meeting Investor Expectations the Most: Greece Golden Visa
Findings from the Get Golden Visa team’s extensive investor interviews reveal some startling facts about investment behavior. When investors register for Golden Visa schemes, three notable trends emerge:
- Favoring investments in real estate above solutions that rely on donations.
- Selecting European Union programs over those in far-flung places like the Caribbean islands.
- Planned for the long term as opposed to moving right away to their investment target. (As a result, investors like sites that are somewhat close to Turkey.)
In a unique way, Greece’s Golden Visa Program satisfies all three of these investor preferences at once.
Key Advantages of the Greece Golden Visa Program
- Remote application is possible.
- No minimum stay requirement.
- Visa-free travel within the Schengen Area.
- Access to public healthcare and educational services.
- Lowest investment threshold (starting from €250,000).
- The program can include the applicant’s spouse, children under 21, and both parents.
- Greece’s growing real estate market makes it an attractive investment option.
- International income earned outside Greece can benefit from double taxation agreements.
- Greece provides extra tax breaks for specific groups. This includes retirees and digital nomads.
Italy: A Faster Residency Option in Europe and the New Rising Star of EU Golden Visas
Italy offers residency to non-EU investors through different investment options. However, it does not include real estate investment as a direct choice, unlike many other European countries. The country stands out due to its diverse investment pathways and unique advantages.
Italy stands out among European Golden Visa programs. It allows government-approved investments in innovative startups as a valid option. While many European programs target real estate and financial assets, this one focuses on sectors that boost economic growth.
Also, Italy is great for investors and their families. It has a top-notch healthcare system, great schools, and a rich cultural heritage.
Here are the investment options available under the Italy Golden Visa Program:
- Investment in Innovative Startups: A minimum investment of €250,000 in an innovative startup approved by the Italian authorities.
- Capital Contribution to Italian Companies: Invest at least €500,000 in a company based in Italy.
- Purchase of Government Bonds: A minimum investment of €2,000,000 in Italian government bonds.
Investors who pick one of these options get a two-year residence permit. They can renew it in three-year increments.
Those who have lived in Italy for 10 years become eligible to apply for Italian citizenship.
Hungary: The New Emerging Alternative
Hungary launched the “Guest Investor Program” (GIP). This program offers residency permits in return for:
- A €250,000 investment in real estate investment funds.
- The purchase of residential property worth at least €500,000, or
- A donation of at least €1 million to a higher education institution in Hungary.
Portugal: Only Plan B Route to EU Citizenship in Exchange For An Investment
Portugal no longer offers a real estate investment option. However, it still has an appealing Golden Visa program. This program allows fund investment with little need for physical presence. Applicants can get Portuguese citizenship by meeting the minimum stay and investment requirements for five years.
Portugal’s 2024 citizenship law reform has made the Golden Visa program even more appealing. Golden Visa holders can now apply for citizenship after five years. The waiting period starts from the date of their initial residency application. They don’t need to wait for approval. So, fund investments are now the most popular way to invest in the program.
A study published in the Journal of Ethnic and Migration Studies reveals that between 2013 and 2019, 14.4% of Portugal’s foreign investments came through the Golden Visa program. In the same period, this figure was 12.2% in Latvia and over 7% in Greece.
Malta: A Popular Option in the Heart of the Mediterranean
Malta’s Individual Investor Program (MIIP) provides an easy route to EU citizenship. The program allows applicants to obtain Maltese citizenship through donation and investment.
- Applicants need to contribute €600,000 if they lived in Malta for 36 months. If they lived there for 12 months, the contribution is €750,000.
- Additionally, to obtain Maltese citizenship through investment, applicants must either:
- Invest at least €700,000 in real estate, or
- Lease a property with a minimum annual rent of €16,000.
Maltese citizenship gives applicants and their families full EU rights. This includes the right to live, work, and study anywhere in the European Union.
Once they become Maltese citizens, applicants receive a European passport, which provides visa-free access to over 180 countries and territories, including the United Kingdom, the United States, and Canada.
The Malta citizenship application process can take up to one year. Malta is a full EU member and part of the Schengen Area.
Get Golden Visa: Who We Are and How We Can Help You?
Get Golden Visa is a global firm with over 10 years of experience in investment migration. We offer personalized guidance and consultancy to investors. Our offices are in Istanbul, London, Portugal, and Athens. Our skilled team helps investors meet the minimum investment amount. We help them apply for a residence permit. Then, we assist them in settling into their new country.
For potential investors affected by Spain’s program closure or seeking EU residency, we recommend booking a consultation to discuss your specific circumstances and explore your available opportunities.
