End of Spain’s Golden Visa Program Unlikely to Deter Foreign Luxury Home Buyers, Experts Say

The decision to abolish Spain’s Golden Visa Program will not stop wealthy international buyers from acquiring luxury properties, as their primary interest lies in profitable investments rather than residency, according to real estate experts.

Spain officially announced the termination of the Golden Visa Program on April 3, 2025, as part of efforts to address the ongoing housing crisis. The most attractive feature of the program has been the real estate investment option, which grants residency in exchange for purchasing properties valued at €500,000 or more.

In addition to ending the program, Spanish authorities have introduced plans to impose a tax of up to 100 per cent on properties purchased by non-EU nationals. This move has sparked debate, with some experts questioning its effectiveness in addressing housing concerns.

Commenting on the proposed tax, Maryem Essadik, CEO of Barcelona-based Marfour Law and an immigration and property lawyer, told The Local Spain, “This doesn’t make much sense because foreign investors are competing for housing that’s out of the reach of middle-class or low-income locals.”

Despite the newly announced measures, real estate professionals told The Local that abolishing the Golden Visa option is unlikely to make high-end properties more accessible or affordable. Experts highlighted Madrid and the Balearic Islands as prime locations for luxury real estate purchases, along with Valencia and the Costa del Sol.

José Miguel Artieda, President of the Official College of Real Estate Agents (APIS) of the Balearic Islands, emphasized the ongoing demand for high-end properties, stating in an interview with El Confidencial, “There is excess demand in the Balearic archipelago for the purchase of luxury and super-luxury housing.”

100% Tax on Property Purchases From Non-EU Nationals

Spanish Prime Minister Pedro Sánchez recently unveiled plans to introduce a tax of up to 100 per cent on properties acquired by buyers from non-EU countries.

“The tax burden that they will have to pay in case of purchase will be increased up to 100 per cent of the value of the property, in line with countries such as Denmark and Canada,” Sánchez announced.

According to the Spanish PM, foreign nationals from outside the European Union purchased a total of 27,000 properties in Spain in 2023, primarily for investment rather than residency purposes. The government is now taking steps to curb the expansion of short-term rentals as part of broader efforts to address housing issues.

Sánchez emphasized that housing remains one of the most pressing concerns in European countries and reiterated the need for policy reforms. “Housing must become a right and not the pillar of the welfare state,” he stated. 

By fLEXI tEAM