Spain's Golden Visa Program Nears Its End: What Expats Need to Know

In a significant development that will impact many expats and foreign investors in Spain, the country's Golden Visa program is on the verge of being abolished. Here’s a detailed look at the recent events and what this means for those affected.

The Legislative Journey

The Golden Visa program, which allowed non-EU nationals to obtain residency in Spain in exchange for significant investments, such as purchasing property worth €500,000 or more, has been a contentious issue. In April 2024, Prime Minister Pedro Sánchez announced plans to terminate the program, citing concerns that it was inflating property prices and potentially enabling foreign criminal activity[5].

The bill to abolish the Golden Visa program was approved by the Congress of Deputies in December 2024, with 177 votes in favor and 170 against. However, the Spanish Senate, controlled by the centre-right Partido Popular (PP), vetoed the bill on December 2, 2024, temporarily halting its progress. The Senate argued that the government's legislative approach was confusing and lacked proper drafting techniques[1][3].

Congress Overrides the Senate Veto

Despite the Senate's veto, the Congress of Deputies exercised its constitutional authority to override the opposition. On December 19, 2024, Congress voted to end the Golden Visa program, marking the final legislative hurdle. This decision was part of the broader Law for the Efficiency of Public Justice Service[5].

Official End Date and Last Chance for Applications

The Official State Gazette (BOE) published the Organic Law 1/2025 on January 3, 2025, officially confirming the abolishment of the Golden Visa program. According to this law, the program will officially end three months after its publication, which sets the final deadline for submitting applications as April 3, 2025. This means that wealthy investors still have a short window to apply for the Golden Visa under the existing rules[3].

Impact on Housing and Expats

The decision to end the Golden Visa program is part of a broader strategy by the Spanish government to address the country's housing crisis. Prime Minister Pedro Sánchez has emphasized the need to ensure that housing is not a speculative business but a right. The government plans include converting empty flats into affordable rental units, building new public flats, and imposing restrictions on property ownership by non-EU citizens[4].

For expats who have been considering or have already applied for the Golden Visa, this development brings both clarity and urgency. Those who have pending applications will be processed under the existing regulations, but new applications must be submitted before the April 3, 2025 deadline[3][5].

Reactions and Future Implications

The end of the Golden Visa program has sparked mixed reactions. Some argue that the program was beneficial to the Spanish economy, while others see it as a necessary step to curb speculation and ensure affordable housing for Spanish citizens. María L. De Castro, General Director of CostaLuz Lawyers, has challenged the government's rationale, arguing that the Golden Visa was not detrimental to the Spanish economy or housing market[5].

As Spain moves forward without the Golden Visa program, it remains to be seen how this will affect the country's real estate market and its appeal to foreign investors. For now, expats and potential investors must act quickly if they wish to take advantage of the program before it closes.