Spain Abolishes the Investor Visa Program (Golden Visa) in 2025: What Investors Need to Know

Introduction: The End of an Era for Spain's Golden Visa Program

Spain's Golden Visa program, which provided a pathway for non-EU nationals to secure residency in exchange for significant investment, will officially come to an end in 2025. This program, established under Law 14/2013 (known as the Entrepreneurs’ Law), has attracted considerable attention over the years, particularly from investors interested in securing European residency through real estate, government bonds, or other qualifying investments.

As of April 3, 2025, Spain will no longer accept new applications for Golden Visas. This decision comes in response to a combination of social, economic, and political pressures, along with broader European Union concerns about transparency and the potential for money laundering and tax avoidance. As a result, prospective investors and current holders of Golden Visas must navigate significant changes in the legal landscape.

In this article, Creimerman Law provides a comprehensive guide for investors to understand the key implications of the end of Spain's Golden Visa program, its transitional provisions, and alternative pathways to residency in Europe.

The Golden Visa Program: A Snapshot of Spain’s Investment Residency Scheme

Introduced in 2013, the Golden Visa program allowed foreign nationals from outside the European Union to obtain Spanish residency by making qualifying investments. The main investment routes included:

• Real Estate: The purchase of property worth €500,000 or more.

• Government Bonds: A minimum investment of €2,000,000 in Spanish public debt securities.

• Equity Investments: A €1,000,000 investment in Spanish companies, shares, or venture capital funds.

• Bank Deposits: A deposit of €1,000,000 in a Spanish financial institution.

• Business Projects: Investments that created jobs or had significant public interest, approved on a case-by-case basis.

  
  

Golden Visa Approval Trends Before Abolition

The Golden Visa program gained significant traction over the years, with over 5,000 visas granted in 2022 and 2023 alone. The majority of approvals came from property investments, as 94% of Golden Visas were granted to individuals purchasing real estate. The program attracted significant interest from countries such as China, Russia, and the United States.

While the program primarily aimed to boost Spain's economy by attracting foreign capital, it also had broader implications, including raising concerns over the rising cost of real estate in major urban centers like Madrid, Barcelona, and coastal regions, which were popular with foreign investors.

Why Spain Is Ending the Golden Visa Program

Several factors have contributed to Spain’s decision to abolish the Golden Visa program:

1. Housing Affordability: There has been significant concern over the impact of foreign investment in the real estate market. Critics argue that the program contributed to the rising cost of housing, especially in tourist-heavy areas, making it more difficult for locals to afford homes. This led to growing public dissatisfaction.

   
   

2. EU Concerns: The European Union has raised concerns about "Golden Visa" programs across Europe, particularly regarding their potential to facilitate money laundering, tax evasion, and other financial crimes. The European Commission has recommended that member states review these programs to ensure they comply with EU laws and standards of transparency.

   
   

3. Political Pressure: Domestic political forces, including those advocating for social welfare and affordable housing, pressured the Spanish government to shut down the program. As the real estate sector boomed, local populations in major cities increasingly voiced concerns over foreign investors driving up property prices.

   
   

Legal Framework for Abolishing the Program

The end of Spain’s Golden Visa program is being formalized through Organic Law 1/2025, which amends various provisions of Spain's immigration and residency laws. In particular, it repeals Articles 63–67 of Law 14/2013, which previously enabled the Golden Visa program.

Under this new legal framework, the program will officially close for new applicants on April 2, 2025. Applications for Golden Visas submitted before this date will continue to be processed under the old rules, and applicants who submit their documents on or before this deadline will still be eligible to receive their visas under the pre-existing criteria.

Transitional Rules and Effects for Current Applicants

For investors and families who have already initiated the Golden Visa application process, Spain's new law includes important transitional provisions:

1. Applications Submitted Before April 3, 2025: Investors who submit a complete application before the law takes effect will still be able to receive the visa under the old regulations. This means that if an investor has already begun the application process but has not yet received a response, they will still be able to benefit from the Golden Visa program.

   
   

2. Existing Golden Visas: Individuals who already hold a Golden Visa will not be affected by the law change. Their visas will remain valid for the duration of the original term and can be renewed under the old rules. These renewals will follow the standard procedure, including the usual three-year initial residence permit and subsequent five-year renewals.

   
   

In practice, this means that applicants must ensure their applications are fully completed and submitted before the cutoff date. Investors who are in the process of finalizing their applications must work quickly to meet the deadline and avoid losing the opportunity.

Tax Implications for Golden Visa Holder

While the Golden Visa program provides residency in Spain, it does not automatically exempt holders from Spanish tax laws. Golden Visa holders must consider the following:

• Tax Residency (183-Day Rule): Individuals who spend more than 183 days per year in Spain are considered tax residents and are subject to Spanish income tax (IRPF) on their worldwide income. If a person spends fewer than 183 days in Spain and does not establish their “center of economic interests” in the country, they will be considered a non-resident and taxed only on Spanish-source income.

  
  

• Wealth Tax: Spain imposes an annual wealth tax on both residents (for their global assets) and non-residents (for their assets located in Spain). There is an exemption of €700,000 for non-residents, which applies to the net value of their Spanish assets.

  
  

• Beckham Law: This special expat tax regime allows individuals who move to Spain to be taxed at a flat 24% rate on their Spanish income (up to €600,000) and exempt most foreign income. However, this regime applies only to individuals working in Spain, not to passive investors holding Golden Visas.

  
  

Application Process and Timelines

Before the program closes, the application process for a Golden Visa was relatively fast. Typically, once the required documents were submitted, the Spanish authorities had 20 business days to process and approve or deny the application. In many cases, approval was granted in as little as 7–10 days.

For investors who wish to apply before the deadline, the process remains the same, but it is crucial to act quickly:

1. Prepare Documentation: Applicants must gather all necessary documents, including proof of investment (e.g., real estate purchase deed, bond purchase certificates), a clean criminal record, health insurance, and their Spanish Tax Identification Number (NIE).

2. Submit Application: The application should be filed at the nearest Spanish consulate or immigration office.

3. Processing Time: The Spanish government will process the applications within 20 days, though expedited processing can sometimes result in approval in as little as 7–10 days.

4. Residence Visa: Once the visa is approved, applicants will receive a one-year visa and can later obtain their initial three-year residence permit.

   
   

Renewals and Citizenship Pathways

For current Golden Visa holders, the usual renewal and citizenship pathways apply:

• Permit Renewal: The first investor residence permit lasts three years, and subsequent renewals are for five years as long as the investment is maintained.

• Permanent Residency: After five years of continuous legal residence, investors and their families can apply for long-term residency in Spain.

• Citizenship: Spanish nationality generally requires ten years of residency. However, investors who do not live in Spain full-time will not be eligible for citizenship, as the law mandates physical residence in Spain for a certain period before naturalization.

  
  

Alternative EU Investment Programs

With Spain closing its Golden Visa program, investors can explore other European residency options. Some of the best alternatives include:

• Greece Golden Visa: This program remains active, and investors can qualify with a real estate investment starting at €250,000 in certain areas. There is no minimum stay requirement, and the processing time is typically 2 months.

• Portugal Golden Visa: Portugal’s Golden Visa continues, although real estate investments are now mostly restricted in Lisbon, Porto, and mainland urban areas. However, there are still pathways through investment funds and other approved projects.

• Malta Permanent Residency Program: Malta’s program requires a mixed investment, including property purchase, donations, and government fees. It provides EU residency without a stay requirement and citizenship after approximately 12+ years.

  
  

Each of these programs has specific requirements, benefits, and processing timelines. Creimerman Law can help compare these options to determine which is best suited for each client’s needs.

How Creimerman Law Can Assist

Creimerman Law is well-positioned to help clients navigate the end of Spain’s Golden Visa program and explore alternative residency opportunities. Our team can assist investors in the following areas:

• Expediting Spanish Applications: Ensure all documents are in order and applications are submitted urgently before the deadline.

• Handling Renewals: Assist current Golden Visa holders in maintaining their residency status and renewing permits under the old rules.

• Advising on Alternatives: Provide guidance on the best alternatives for residency by investment in Greece, Portugal, and Malta, depending on each client’s goals.

• Tax Planning: Collaborate with international tax experts to ensure tax efficiency and compliance, minimizing exposure while optimizing investment strategies.

  
  

Conclusion: Act Now to Secure Your Residency Pathway

The end of Spain’s Golden Visa program marks a significant shift in European residency opportunities. Investors wishing to take advantage of the program must act quickly, submitting their applications before April 3, 2025. For those who already hold Golden Visas, the renewal process remains intact, but it is essential to ensure compliance with the investment requirements.

Creimerman Law is here to assist with this transition, ensuring that your investment, residency, and tax strategy are aligned to maximize your benefits, whether you choose to complete your Golden Visa process or explore alternative European programs.

If you're interested in learning more about how to take advantage of the final days of the Golden Visa program in Spain or explore other residency options in Europe, contact us today to receive personalized advice from our experts.

Email us at info@creimermanlaw.com to start your process.