Spain's Golden Visa Program to End: What Expats Need to Know

In a significant development that will impact many expats and investors, Spain's Golden Visa program, a highly popular residency-by-investment scheme, is set to be discontinued as of April 3, 2025. This decision, announced by the Spanish government, aims to address housing affordability concerns and mitigate real estate market pressures.

History and Impact of the Golden Visa

Introduced in 2013, the Golden Visa program was designed to attract foreign investment, particularly in real estate. It allowed non-EU, non-EEA, and non-Swiss nationals to obtain residency in Spain by making a significant financial investment. The most common route involved investing a minimum of €500,000 in Spanish real estate, free of any mortgage or financing. Other options included capital investments of at least €1 million in Spanish businesses or bank deposits, or €2 million in government bonds.

The Golden Visa granted residency rights to the investor and their immediate family, including spouses, dependent children, and parents. It also allowed holders to travel freely within the Schengen Area without needing additional visas and did not require full-time residence in Spain, with only an annual visit necessary.

What Happens to Current Holders and Pending Applications?

Existing Golden Visa holders will retain their residency rights, and their visas will remain valid for the period initially granted. Applications submitted before the April 3, 2025, deadline will be processed under the existing regulations. However, no new applications will be accepted after this date.

Alternative Residency Options for Expats

With the termination of the Golden Visa program, expats and investors seeking residency in Spain will need to explore alternative options:

Non-Lucrative Visa

This visa is designed for individuals who can financially support themselves without engaging in employment or professional activities in Spain. Applicants must demonstrate sufficient financial means (around €2,400 per month for an individual) and possess comprehensive private health insurance.

Entrepreneur Visa

Tailored for those intending to launch innovative business ventures in Spain, this visa requires the submission of a detailed business plan highlighting the project's viability, innovation, and potential job creation.

Work Visa

For individuals who have secured employment with a Spanish company, this visa requires a valid job offer and, in certain cases, verification that the position cannot be filled by a resident worker.

Student Visa

Intended for non-EU nationals wishing to pursue studies in Spain, this visa requires enrollment in a recognized educational institution and proof of sufficient financial resources.

Family Reunification

This option allows family members of legal residents or citizens to join them in Spain, requiring proof of relationship, financial means, and suitable living conditions.

Transitioning to Other Residency Paths

For those who were relying on the Golden Visa, transitioning to other residency paths may be necessary. For example, the Non-Lucrative Visa, while restrictive in terms of employment, can be a viable option for those with sufficient financial resources. It is crucial to consult with immigration experts to navigate the specific requirements and ensure a smooth transition.

Conclusion

The end of the Golden Visa program marks a significant change in Spain's residency-by-investment landscape. While it may present challenges for some, the alternative residency options available offer various pathways for expats and investors to secure their place in Spain. As the country continues to evolve its immigration policies, it is essential for those affected to stay informed and seek professional advice to ensure compliance with the new regulations.