Golden Visa: what it was, why it was abolished and what alternatives exist

For over a decade, the Golden Visa was the favourite gateway for non-EU investors into Spain. Buying a property worth €500 000 or more opened a residence permit with no obligation to live in the country, Schengen access included. On 3 April 2025, that door closed. This article explains what it was, why it was abolished, what happens to current holders and what alternatives a non-European investor has today.

What the Golden Visa was

Spain's Golden Visa was created by Law 14/2013 supporting entrepreneurs. It granted residence permits to non-EU nationals making a 'significant investment' in Spain. The routes were:

• Property investment: purchase of one or more properties worth ≥ €500 000 (by far the most popular).
• Shares or funds: ≥ €1 000 000 in Spanish companies.
• Public debt: ≥ €2 000 000 in government bonds.
• Bank deposit: ≥ €1 000 000 in a Spanish financial institution.
• Business project: job creation or significant socioeconomic impact.

The permit was renewable every 2 years without needing to actually reside in Spain — maintaining the investment sufficed. It included direct family members (spouse and children) and gave Schengen access (free movement across 26 European countries).

Why it was abolished

Organic Law 1/2025, published in the BOE on 3 January 2025, abolished the property route of the Golden Visa. The abolition took effect on 3 April 2025. Since that date, no new applications are accepted.

The government's stated reasons:

• Impact on the housing market: the Golden Visa was perceived as a factor inflating prices in high-demand areas (Madrid, Barcelona, Málaga, the Balearics). The argument was that foreign investors bought luxury properties and left them empty, removing stock from the market.
• Social pressure over housing access: Spain's housing affordability crisis made it politically untenable to maintain a programme that facilitated purchases by high-net-worth foreigners.
• European trend: Portugal had already abolished its property Golden Visa in 2023. Ireland abolished its programme in 2023. Greece restricted it. Spain followed suit.

Has it affected prices?

One year after abolition, according to Spanish media analysis, prices have not fallen. The Golden Visa represented a small percentage of total transactions (estimated at under 1 % nationally, though more significant in specific Madrid and Barcelona neighbourhoods). Price rises are driven by more structural factors: supply shortage, domestic demand, inflation and interest rates.

What happens to current holders

Investors who obtained the Golden Visa before 3 April 2025 retain their permit and can continue renewing it as long as they maintain the investment. Dependent family members also keep their status. There is no retroactive application — the abolition only affects new applications.

Holders wishing to transition to another permit type (permanent residence after 5 years, or self-employed residence) can do so following standard immigration procedures.

Alternatives for non-EU investors in 2025-2026

The Golden Visa abolition does not mean a non-EU national cannot live in Spain. Several alternative routes exist:

1. Non-lucrative residence visa

The most direct replacement for investors and retirees. Allows you to live in Spain without working, provided you demonstrate sufficient financial means (≥ €28 800/year) and have private health insurance. No minimum investment requirement — you can buy a €100 000 flat or a €2 000 000 one, or buy nothing at all.

The key difference from the Golden Visa: the non-lucrative visa does require actually residing in Spain (spending most of the year in the country). It is not a 'paper permit' as the Golden Visa was.

2. Digital nomad visa

For remote workers with employment or clients outside Spain. Minimum income ~€2 850/month, Beckham tax regime access (24 % on Spanish income), up to 5 years. Detailed in our article on the digital nomad visa.

3. Entrepreneur visa

For those wanting to create a business in Spain. Requires a viable business plan with positive socioeconomic impact and a favourable trade office report.

4. Employment visa

If a Spanish company offers you a job. The company processes the work permit. The most employer-dependent visa.

5. Family reunification

If you have a family member (spouse, children, parents) who is already a legal resident in Spain, you can apply for family reunification to obtain a residence permit linked to theirs.

6. Golden Visa via other routes (non-property)

Law 1/2025 abolished only the property route. The other Golden Visa paths (company investment ≥ €1M, public debt ≥ €2M, bank deposit ≥ €1M, business project) remain in force. If your investment capacity is higher and you prefer financial assets, these routes continue to be an option.

Is it worth buying property without the Golden Visa?

Absolutely. The Golden Visa abolition does not restrict property purchases by foreigners. A citizen of any country can buy a flat, a villa or an entire building in Spain without needing to be a resident. What they can no longer do is use that purchase as a direct route to a residence permit.

If your motivation is investment (rental yield, appreciation), the Golden Visa abolition is irrelevant. If your motivation is residential (living in Spain), you need to combine the purchase with one of the alternative visas described above.

Frequently asked questions

Can I apply if I had started the process before April 2025?

Applications filed before 3 April 2025 are processed under the previous rules. If you submitted in time, it will be resolved under Golden Visa rules. If you did not file before that date, it is no longer possible.

Do other European countries still have property Golden Visas?

Yes, some. Greece maintains its programme (with geographic restrictions and a threshold of €400 000-800 000 depending on the area). Malta, Latvia and Hungary have similar programmes. However, the European trend is restrictive — the European Commission has recommended limiting or abolishing these programmes. Check current legislation for the specific country.

Can I buy and then apply for a non-lucrative visa?

Yes. Buying a property demonstrates ties to Spain and accommodation availability, which strengthens your non-lucrative visa application. It is not a requirement but a favourable factor. What matters is demonstrating sufficient income or assets and having health insurance.

Does the abolition affect EU buyers?

No. EU/EEA citizens have freedom of movement and need no visa or investment permit to live in Spain. The Golden Visa only applied to non-EU nationals.

Will the property Golden Visa ever return?

Unpredictable. The current political climate in Spain and Europe makes a short-term restoration unlikely. But political cycles change, and if foreign investment demand falls significantly, future governments could reconsider. Not a basis for planning — better to work with the options that exist today.

If you are evaluating how to combine property investment with residence in Spain, explore our available properties or contact us for a personalised consultation.