Spain’s Congress Approves End to Golden Visa Real Estate Investment Option by January 2025

On November 14, 2024, Spain’s Congress of Deputies approved legislation to eliminate the real estate investment route from the nation’s Golden Visa Program, a move set to take effect in January 2025.

This development follows amendments introduced under the Law for the Efficiency of Justice, which were ratified during a plenary session of Congress.

While this marks a significant step in ending the controversial program, the bill must still pass through the Senate for amendments before returning to Congress for final approval. Only then will the real estate investment option officially be abolished from the Residency by Investment Program.

Eliminating Real Estate Investments from the Program

Spain’s Golden Visa Program has served as a gateway for non-EU nationals to secure residency through financial investments. The program offers multiple pathways for obtaining residency, including real estate investment, business development, and capital transfers.

The real estate option, which has been the most popular, allows foreign nationals to obtain residency by purchasing property valued at €500,000 or more, provided they meet additional requirements.

Earlier this year, Spain’s Prime Minister Pedro Sánchez criticized the program, stating that 94% of the approved visas were tied to real estate investments in areas he described as “stressed” housing markets, such as Madrid, Barcelona, Málaga, and Valencia. In April, Sánchez announced his intention to discontinue this route, arguing that it exacerbates Spain’s housing crisis.

“I want to announce that tomorrow’s Council of Ministers is going to study a report submitted by the Minister of Housing and Urban Agenda to modify the law, approved by the Popular Party in 2013, which allows obtaining a residence visa if you invest in housing in our country,” Sánchez stated.

He further emphasized the government’s commitment to ensuring housing remains a basic right rather than a speculative asset, saying, “The country would take all the necessary measures to ensure that housing is a right and not a mere speculative business.”

Economic Impact of the Golden Visa Program

Despite the criticism, the Golden Visa Program has been a substantial contributor to Spain’s economy, particularly through its real estate investment option. In 2022 alone, 2,462 golden visas were granted under the real estate route, representing a 60% increase compared to 2021. Applicants in this category are required to invest a minimum of €500,000 in Spanish property.

Since the program’s inception in 2013, Spain has issued a total of 11,464 golden visas, a significant proportion of which were tied to real estate investments.

While the economic benefits are evident, the move to eliminate the real estate pathway aligns with broader efforts to address the nation’s housing affordability issues. As the legislative process moves forward, all eyes will be on the Senate’s deliberations and the potential implications for foreign investors and Spain’s housing market. 

By fLEXI tEAM