Spain's golden visa: A temporary farewell amid shifting immigration policies

As of April 3, 2025, Spain's golden visa program, which allowed foreign nationals to gain residency through significant financial investments, has come to an abrupt halt. This cancellation has sparked concerns and disappointment among affluent non-European Union citizens who were eyeing this advantageous route to residency.

The golden visa had permitted individuals to secure residency by purchasing property valued at €500,000, investing €1 million in Spanish companies, or depositing €1 million in a local bank. With the program now suspended, many are left wondering about their options for obtaining residency in Spain.

Several immigration lawyers have voiced their insights on the repercussions of this sudden change. Mark McMillan from Sun Lawyers noted that many last-minute applications were rushed through just before the deadline. He observed that the disappointment primarily stemmed from clients who were unable to complete their applications due to their marital asset regimes, which complicated their eligibility.

Immigration lawyer Mayrem Essadik, head of Marfour Law, expressed relief in having submitted applications for all her clients before the deadline. However, she lamented that many were compelled to make the €1 million investment without having finalized their property purchases. This unexpected shift has left numerous clients in a difficult position.

The Spanish government's rationale for abolishing the golden visa was its perceived detrimental impact on the local housing market, where affluent foreigners were accused of driving up property prices. Yet, Essadik pointed out that the cancellation of financial investment options seems contradictory, especially given the ongoing housing challenges in Spain.

Another group affected by the golden visa's cancellation includes those who had purchased properties off-plan and are still awaiting completion. These clients, having made significant investments, now find themselves unable to apply for residency due to timing issues.

Maria Luisa de Castro from CostaLuz Lawyers revealed that several clients missed the opportunity to apply for the golden visa because of late inquiries. Many were under the impression that they could capitalize on the advantages of the visa without becoming tax residents in Spain, a prospect that has now vanished.

With the golden visa no longer on the table, what alternatives do foreigners have? The non-lucrative visa has emerged as a popular option, though it lacks the tax benefits that made the golden visa appealing. De Castro noted a rising interest in the digital nomad visa, despite its stricter requirements.

McMillan pointed out that many individuals who would have qualified for the golden visa are now considering the digital nomad visa, which allows remote workers to benefit from a favorable tax regime under Spain's Beckham Law. This law offers a flat 24 percent tax rate for eligible displaced workers, presenting an attractive alternative for those with international careers.

Despite these shifts, Essadik cautioned that the legal pathways to residency are becoming increasingly limited. The consensus among property experts is that the removal of the golden visa will not significantly impact the overall property market or the luxury real estate sector.

De Castro echoed this sentiment, asserting that the cancellation will not alleviate Spain's housing crisis. She believes the decision was politically motivated and anticipates that a future government may reintroduce a similar program.

Originally launched in 2013 by the Popular Party amid an economic downturn, the golden visa was a bid to attract foreign investment. The current political discourse reflects ongoing tensions regarding housing policies, with critics labeling the cancellation a distraction from deeper systemic issues.

As Spain navigates this new landscape of immigration and residency options, the future of the golden visa remains uncertain, though many hope for its eventual return.