SPANISH GOLDEN VISA
Formally known as residency-by-investment schemes, so-called golden visas give legal residence rights to foreign citizens who, in exchange, make an investment in the host country. The visas have become increasingly popular among Americans looking to move abroad. However, programs offering visas in exchange for real estate purchases have become politically controversial in recent years due to fears that they are contributing to rising housing costs. The Golden Visa provided several advantages, such as residency in Spain for the investor and their family, visa-free travel within the Schengen Zone, and a pathway to permanent residency and Spanish citizenship if the requirements were met.
The Golden Visa in Spain was introduced in 2013 (Law 14/2013) to attract foreign investment and boost the economy. The most common route to obtain the Golden Visa was through real estate investment, requiring a minimum of €500,000 in property purchases. Over the years, the program became particularly popular among investors from the rest of the world.
However, in recent years, concerns about housing affordability, money laundering, and its impact on the real estate market have led the Spanish government to reconsider the program. In 2024, the government announced plans to end the Golden Visa, particularly by removing the real estate investment option. Its termination aims to address concerns about housing affordability and market speculation. “Today, 94 out of every 100 such visas are linked to real estate investment in major cities that are facing a highly stressed market and where it’s almost impossible to find decent housing for those who already live, work and pay their taxes there,” Spain’s Prime Minister Pedro Sanchez said in April 2024. With Spain announcing the end to its golden visa, US citizens are looking for a plan B destination in Europe in Greece.
The opportunity to obtain a Golden Visa in Spain will end on April 3, 2025. This follows the publication of Organic Law 1/2025 on January 3, 2025. Applications submitted before April 3, 2025, will still be processed under the current regulations. Existing visas and authorizations will remain valid until their expiration dates, and renewals can be managed according to the rules in place at the time of the original approval.
Spain is not the only UE country that has decided to withdraw from this model; Ireland did so in February 2023, Portugal in 2023, and The Netherlands in January 2024.
Still, if a foreigner wishes to establish in Spain, will be able to do it by means of a work contract from a Spanish company that would fill in the steps to obtain the working permit. The entrepreneur residency for those willing to invest in business in Spain could be another possibility, but it is compulsory to offer a real and innovative business plan with cash investment that needs to be approved by the government.
There is also the non-lucrative visa for those with stable income or savings (Min. 28.800 € per year in 2024), but do not wish to work. Private Health Insurance is compulsory. The fact of owning a property might help
There is also a new Digital Nomad Visa (from 2023) for people working on line for foreign companies (Min. 2.520 € per month in 2024). With this possibility the nomad could also bring the family, obtain permanent residency, and even citizenship.
Student visas are also permitted to reside and part-time work during the studies.
Although the Golden Visa is disappearing, there are still options to reside in Spain through remote work, or passive income. If you are looking for something similar, the non-lucrative residence permit or the digital nomad visa, can be good alternatives.
