Since its launch in 2013, the Spanish Golden Visa program has granted residency permits to approximately 15,000 people. This program was established under the Mariano Rajoy government and has significantly boosted the economy, with most applicants investing in Spanish real estate, despite other investment opportunities. 

As has been repeatedly mentioned recently, the high cost of housing in some cities, particularly Madrid and Barcelona, ​​has led to numerous attempts to abolish Spanish Golden Visa program over the past two years. However, this decision was finally approved in the middle of this year.

The increased demand for real estate from foreigners seeking this program, particularly from the Gulf states, China, the United States, and the United Kingdom, has put pressure on Spanish citizens due to the high cost of housing and the scarcity of available real estate options.

This program was created to attract foreign investment in the wake of the economic crisis that hit Europe. It aims to grant European residency to non-EU citizens after investing €500,000 in the country, particularly in real estate.

Attempts to abolish the Spanish Golden Visa program

Regarding the housing crisis, current Spanish Prime Minister Pedro Sánchez stated in April 2024 that housing must be provided equally to all, rather than being a mere speculative matter. He added that he would ensure this problem was resolved and would amend the law passed by the Popular Party at the beginning of the program. 

In December 2024, the issue of abolishing the Spanish residency program was presented to the Spanish Parliament during a session. This ultimately led to the program’s abolition being approved by a majority of 177 votes to 170.

This was followed by a decision by the Spanish government to publish the announcement in the Official Gazette on January 3, 2025, confirming the program’s termination. It also clarified that the decision would take effect three months after its publication in the Official Gazette, with the abolition date set for April 2025. 

Statistics indicate that demand for the program has increased significantly following President Sánchez’s decision. The Spanish Golden Visa Program Unit issued approximately 1,000 visas in 2024, most of them after the president’s decision. Unofficial statistics indicate that approximately 500 permits were issued during the first three months of this year.

Reasons for Cancelling the Spanish Golden Visa Program

✓ One of the main reasons for canceling the Spanish Golden Visa program was the high cost of purchasing and renting housing for local citizens, particularly in Barcelona, ​​Madrid, and coastal countries. This decision came after the government heard the views of citizens and organizations on this issue on several occasions.

✓ Some reports raised doubts about the source of some of the funds used in the investment, and the possibility of their being used for money laundering, prompting the government to take precautionary measures to prevent this.

✓ Some European countries have taken steps to modify or cancel their Golden Visa programs, prompting Spain to follow suit in tightening controls on large foreign investments.

✓ After a comprehensive study and evaluation, the government concluded that the benefits of its program do not outweigh its negative impact on the Spanish real estate market.

What about those considering applying or who already applied

The decision to cancel the Spanish Golden Visa program in April 2025 means that no new applications will be accepted after this period. However, the Spanish Residency Program Unit has confirmed that any application submitted correctly and completely before this date will be considered valid and will be considered and processed in accordance with the law at the time of submission. For holders of a Spanish Golden Visa permit, this procedure does not affect their status or permit in any way.

Alternatives to the Spanish Golden Visa Program

Although the Spanish Golden Visa program has ended, similar programs exist that offer residency in Europe after investing in its economies. Among these programs, the Portuguese EU Residency  is the ideal option.

Obtaining European residency from Portugal is an invaluable opportunity, offering investment options, permanent residency, and citizenship to investors and their family members from a country that enjoys security, financial diversity, and freedom of movement between many European countries.

For more details about Portuguese residency by investment or other programs that offer direct citizenship through investment without the need for residency and waiting, contact an expert at Global Citizen Consultants, the authorized office for obtaining residency or citizenship by investment.