Spain abolishes 'golden visa': what does this mean for investors?

From January 1, 2025, Spain may stop issuing “golden visas” – residence permits granted to foreign citizens for investing in the country.

This decision, taken by the ruling Spanish Socialist Workers’ Party, has become a topic of discussion in the Spanish media and has generated considerable interest among potential investors.

The Golden Visa is a program that allows foreign citizens to obtain a residence permit in Spain, provided that they invest certain amounts in the country's economy. This usually involves purchasing real estate worth at least €500,000, investing in Spanish companies or creating new jobs. The program was launched in 2013 with the aim of attracting foreign investment and stimulating economic growth.

According to media reports, the fate of the Golden Visa was decided on October 30, 2024, behind closed doors. The government amended the organic law on obtaining a residence permit for investment until September 4, 2024.

Congress was supposed to consider these amendments on September 9, but the final decision has only become known now.

The main reasons for the cancellation of the program may be related to changes in the country's economic policy and the desire for stricter control over immigration. The Spanish authorities may want to review the conditions under which foreigners can obtain a residence permit in order to prevent possible abuse of the program.

It is important to note that the Spanish government plans to introduce a transition period for those who applied for residency by investment before the new rules came into force. This means that current investors will still have the opportunity to obtain residency if they submit their applications before January 1, 2025.

While the government has not yet commented on the changes, information on whether Congress will vote on the amendments will be known in the next two weeks. This time will be critical for those considering investing in Spain.

What should investors do?

For those planning to obtain a residence permit by investment, now is the time to act. Contacting Mercury Group experts can help you understand the intricacies of the process and minimize risks. We can provide individual advice, help with the preparation of the necessary documents and give recommendations on the best investment options.

The abolition of the "golden visa" in Spain is a significant change that can affect the investment climate in the country. Investors should closely monitor developments and make decisions based on up-to-date information. If you are considering obtaining a residence permit by investment, do not miss the chance to do so before the new rules come into force.