Famous Golden Visa Program of European Country Ended After 12 Years

Spain’s Golden Visa Program has officially been discontinued, meaning non-EU nationals will no longer be eligible to secure residency or visa-free travel within the Schengen Zone through financial investments in Spain, according to Schengen.News.

Introduced in 2013 under the government of Mariano Rajoy, the program granted 14,576 golden visas over the years, primarily through real estate investments, which required a minimum investment of €500,000. Despite multiple investment routes being available, approximately 95% of the visas were issued via property purchases, significantly contributing to Spain’s economy.

Real Estate-Driven Scheme Blamed for Soaring Housing Prices

However, the program’s popularity also brought unintended consequences, particularly in Madrid and Barcelona, where soaring property prices have made housing increasingly unaffordable for local residents. Other popular regions for Golden Visa recipients included Malaga, the Balearic Islands, Alicante, Girona, and Valencia.

The main beneficiaries of the scheme included nationals from China, the United States, and the United Kingdom.

As property prices surged due to foreign investment, concerns grew that housing was being turned into a speculative asset rather than a basic right. In April 2024, Spanish Prime Minister Pedro Sánchez pledged to tackle the issue, stating:

“Housing must be a right, not a speculative business. Tomorrow’s Council of Ministers will review a report to amend the 2013 law allowing residency through property investment.”

Congress Approves Abolishment; Law Officially Published

The Congress of Deputies passed the proposal to terminate the program in December 2024, with 177 votes in favor and 170 against. The decision was formalized with the publication of Organic Law 1/2025 in Spain’s Official Gazette (BOE) on January 3, 2025, with the law set to take effect three months later.

Despite Sánchez’s earlier announcement, demand remained strong, with 780 golden visas issued between January and October 2024, according to Local Spain. Industry estimates suggest that an additional 500 visas may have been granted in the first quarter of 2025 alone.

The termination marks a significant policy shift aimed at prioritizing affordable housing for Spanish residents over foreign investment in real estate.