The so-called “Golden Visa” regulation in Spain, which since 2013 has opened up an uncomplicated way for numerous non-EU investors to obtain a residence permit via real estate purchases or other capital investments, will be completely abolished from April 2025. In this article, you will learn about the reasons that led to this decision, what consequences it has for the real estate market and what options are open to you after the program expires. A special focus is on Mallorca, which is particularly in demand among foreign buyers due to its high-quality real estate offerings.
What is the Golden Visa in Spain?
The Golden Visa was created in 2013 with the aim of encouraging foreign investment. It allows non-EU citizens to obtain a Spanish residence permit, provided they make a qualifying investment. One of the most common methods is the purchase of one or more properties with a total value of at least 500,000 euros. In addition, there are other forms of investment, including bank deposits, participations in Spanish companies or government bonds. Those who take advantage of the Golden Visa benefit from freedom of travel in the Schengen area and, under certain conditions, can also apply for the right of residence for their family members.
Since its introduction in 2013, investors from different regions of the world have opted for the Golden Visa, partly because of the stable real estate market and the advantageous conditions of living in Spain. Nevertheless, the program met with criticism from the outset – especially with regard to a possibly overheated real estate market in metropolitan areas such as Madrid, Barcelona and popular holiday regions. At the European level, various bodies also expressed security and money laundering concerns about such residence programmes.
Why is the Golden Visa being abolished?
According to the Spanish government, the abolition of golden visas is primarily due to the fact that the local population is increasingly being displaced from central locations by steadily rising property prices. Prices have risen significantly in recent years, especially in large cities and renowned holiday regions, making it difficult for Spanish citizens to find affordable housing. By ending the programme, Spain intends to alleviate the housing shortage and prevent excessive speculation.
In addition, the EU Commission has long been pursuing the goal of curbing or completely preventing such investor programs. The associated risks in terms of security and money laundering have been the subject of controversial discussions for some time. After extensive examination, Spain has now decided to completely discontinue the Golden Visa. Investors thus have the last opportunity to submit applications until April 2025.
What impact will the end of the Golden Visa have on the real estate market?
Although some observations suggest that some foreign investors will no longer specifically purchase a property in Spain as the right of residence is no longer applicable, a large part of the demand is likely to remain unabated. Many buyers choose Spain for other reasons: these include the Mediterranean climate, the high quality of life and the comparatively stable yields in regions such as Mallorca or the Costa del Sol.
Especially in the premium segment – i.e. exclusive villas, apartments and fincas with high value – there is unlikely to be a significant reduction in demand. In this area, lifestyle motives, long-term capital investment and the stability of the value of the region are often more important than a right of residence linked to an investment. Thus, the end of the Golden Visa is likely to have only a marginal impact on price and market developments in these prime locations.
Important information for investors
• Scheduling: You still have until April 2025 to apply for the Golden Visa. In view of the time periods associated with a property purchase and the official procedures, it is advisable to act early.
• Market opportunities: Properties worth around 500,000 euros have so far been of interest to investors targeting the Golden Visa. After the abolition, this segment could change slightly. In higher price categories, however, the momentum remains robust.
• Possible alternatives: If you are still interested in obtaining a residence permit in Spain after April 2025, there are various alternative options. These include, for example, the non-lucrative visa for people who want to live in Spain without the intention of making a living, or a special visa for digital nomads. Visas for highly skilled workers or entrepreneurs are also conceivable options.
• Long-term strategy: When investing in Spain, it is important to carefully consider taxes, location factors and possible rentals. A professional real estate consultant can support you in choosing the right property and provide you with a well-founded market analysis.
Why investing in Mallorca is still worthwhile
Over many years, Mallorca has developed into one of the most attractive real estate markets in Europe. The island is characterized by excellent connections to international flight routes, a wide range of leisure and cultural facilities, and a cosmopolitan flair. For many investors, it is not only about a favorable price-performance ratio, but above all about quality of life and long-term value appreciation.
Mallorca has already established itself in the premium segment. Fincas, villas by the sea and luxury apartments are experiencing constant demand due to limited availability and excellent locations. Investors for whom the Golden Visa was merely an additional advantage therefore usually continue their purchase intentions. Even if there is no longer an automatic right of residence linked to the purchase of real estate, the island remains a permanently attractive location for many target groups.
How to proceed now
1. Professional advice: Contact experienced professionals such as brokers, lawyers and tax advisors at an early stage to obtain information about buying real estate and any visa procedures.
2. Define the purpose of your investment: Consider whether you want to use a property as an investment property, as a holiday home or as a permanent residence. Depending on the intention, the purchase criteria vary.
3. Pay attention to the time horizon: If you still want to benefit from the Golden Visa, you should act quickly. Keep in mind that the search for a suitable property, contract negotiations and the application for the residence permit take time.
4. Check visa alternatives: If you are primarily interested in a long-term stay in Spain, there are still various ways to stay legally in the country after the Golden Visa has been abolished.
Conclusion
The suspension of Golden Visas by April 2025 will undoubtedly herald the end of an era in Spanish investor policy. Nevertheless, the advantages of the country, especially in top locations such as Mallorca, remain unchanged: Many people appreciate the mild climate, the rich culture, the sense of security and the good return opportunities. Those who take action in time can still secure a place in the Golden Visa Program. After that, investors have other options open to them to live permanently or invest in Spain.
Although the convenient Golden Visa process will be eliminated, the basic motives for buying property in Spain are still intact. With careful planning, professional advice and a clear objective, real estate investment in Spain will be worthwhile even without a Golden Visa.
Advice & Contact
If you are interested in investing in real estate in Spain, whether in Mallorca or in another sought-after region, it is advisable to contact specialised brokers, lawyers and tax experts in good time. This guarantees that you can prepare the process of acquiring real estate in the best possible way and ensure a smooth process when applying for the last available Golden Visa. You are welcome to contact us for a personal initial consultation.