The termination of ‘golden visas’ in Spain became official on Thursday with the enactment of a law encompassing “measures regarding the efficiency of Public Justice Service,” which also includes other housing-related initiatives.
These ‘golden visas’ were effectively residence permits granted to individuals making a minimum investment of half a million euros in real estate, under a law enacted in Spain in 2013.
The now-terminated ‘golden visas’ also allowed for residence permits in exchange for investments in bank deposits, public debt, shares, investment funds, and business projects deemed “of general interest.”
According to official data, more than 14,500 ‘golden visas’ were granted in Spain from their inception in 2013 until the end of 2023. Their issuance was bolstered by trends associated with Brexit and the war in Ukraine, which began in February 2022 with Russia’s attack.
Barcelona, Madrid, Málaga, Alicante, the Balearic Islands, and Valencia accounted for 90% of all ‘golden visas’ issued in Spain during the decade of their operation. The majority of recipients were of Chinese and Russian nationality.
The law that came into effect on Thursday also introduces measures to streamline the eviction of illegally occupied homes and mandates that local accommodation must have express condominium permission to be used as tourist apartments.
Spain’s Prime Minister, Pedro Sánchez, announced the intention to end ‘golden visas’ obtained through home purchases a year ago, on April 8.
Sánchez noted at the time that 94 out of every 100 such visas were granted in Spain through home purchases.
The government leader justified the termination of the measure, as other European countries, including Portugal, have done, by citing the challenges in accessing “decent housing” in Spain, which he identified as “the main problem” faced by families and young people.
Most ‘golden visas’ were issued in cities and regions such as Madrid, Barcelona, Valencia, Alicante, Málaga, or the Balearic Islands, where “the housing market is most strained,” Sánchez highlighted.
In Portugal, the proposal to cease granting new ‘golden visas’ for housing investment was approved in July 2023.
The repeal of ‘golden visa’ provisions was one of the proposals in the More Housing program, and with the new law’s enactment, new applications are no longer accepted, but this does not affect the renewal of permits already granted.
Exempted from the restriction on ‘golden visas’ is the granting or renewal of residence permits for family reunification.
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