An IMGW News Report
Spain’s Congress has approved a bill to end the real estate investment option from its Golden Visa Programme, effective January 2025. This move aims to address growing concerns over the impact of foreign property investments on Spain’s housing market, which has been under increasing pressure due to rising property prices. Prime Minister Pedro Sánchez highlighted that 94% of Golden Visas granted in recent years were tied to real estate purchases, particularly in high-demand cities such as Madrid, Barcelona, Málaga, and Valencia. The decision follows concerns that the Golden Visa programme was contributing to the housing crisis, making it increasingly difficult for locals to afford homes.
“In 2022 alone, Spain granted 2,462 Golden Visas to those who chose the real estate option, an increase of 60% compared to the previous year.”
Introduced in 2013, Spain’s Golden Visa allowed foreign investors to gain residency by purchasing property worth €500,000 or more. In 2022 alone, Spain granted 2,462 Golden Visas to those who chose the real estate option, an increase of 60% compared to the previous year. Since the programme’s inception, Spain has issued Golden Visas to 11,464 individuals, meaning the country netted over €5 billion in investment. However, as property prices surged, the real estate investment route began to attract criticism for fuelling speculation and exacerbating the housing shortage, particularly in major cities.
In response, the Spanish government has prioritised reforming the programme as part of its broader strategy to address housing affordability. Sánchez emphasised that housing should be regarded as a basic right, not a speculative asset. As the real estate option is phased out, Spain’s Golden Visa Programme will still offer alternative investment routes, such as business development and capital transfers. Although these alternatives are less popular, they provide viable options for foreign nationals seeking residency in Spain.
This shift mirrors recent changes in neighbouring Portugal, which also restructured its Golden Visa programme to exclude real estate. Portugal now directs investors towards funds or contributions to cultural and research projects, a move that has been well-received by sustainable investment projects like Pela Terra, which promotes community-focused development, particularly in agriculture.
With both countries facing housing challenges, Spain’s decision to remove the real estate route raises questions about whether its neighbour Portugal will make further changes to its approach to residency-by-investment. Spain’s decision may not only reshape the future of Golden Visas in the region but also influence the direction of foreign investment and residency opportunities in Southern Europe.
