An IMGW News Report
Experts believe that the end of Spain’s Golden Visa Programme will not deter foreign nationals from purchasing luxury properties, as their primary focus remains on profitable investments rather than securing residency.
Spain is set to abolish its Golden Visa Programme on April 3, 2025, as part of efforts to address its housing crisis. The programme, which allows non-EU nationals to gain residency by investing in real estate valued at €500,000 or more, has been popular among wealthy foreigners seeking to invest in Spain’s luxury property market.
While the programme’s abolition may be viewed as a way to free up housing for local residents, experts argue that it will not make high-end properties more affordable or accessible to the local population. Spanish authorities have also proposed a new tax on property purchases by non-EU nationals, potentially raising the tax burden to as much as 100% of the property value. This move has sparked concern, with immigration and property lawyer Maryem Essadik stating that such measures are unlikely to alleviate the housing crisis, as foreign investors are not competing for housing that local middle or low-income families can afford.
Real estate professionals point out that the areas most affected by the abolishment of the Golden Visa Programme—such as Madrid, the Balearic Islands, Valencia, and Costa del Sol—remain highly desirable for wealthy investors. José Miguel Artieda, President of the Official College of Real Estate Agents in the Balearic Islands, confirmed that demand for luxury and super-luxury homes continues to exceed supply, further illustrating the resilience of Spain’s luxury property market.
Prime Minister Pedro Sánchez also announced the tax increase as part of broader efforts to curb the spread of short-term rentals, aiming to better manage the housing crisis. Despite these changes, experts assert that non-EU nationals will continue to view Spanish real estate as a profitable venture, with or without the Golden Visa.
