Spain Real Estate (Golden Visa)

What Was the Spain Real Estate Golden Visa?

Launched in 2013, the Spain Golden Visa program aimed to attract foreign investment and boost the Spanish economy following the financial crisis. It offered non-EU individuals and their families the opportunity to gain residency rights in Spain by making a qualifying investment. By far the most popular route was through the acquisition of real estate with a minimum value of €500,000. This investment could be in one or multiple properties, residential or commercial, and had to be free of any liens for the first €500,000.

Why Did the Spain Golden Visa End?

The decision to terminate the real estate investment option of the Golden Visa was primarily driven by two key factors:

• Housing Affordability Crisis: The Spanish government, led by Prime Minister Pedro Sánchez, argued that the program contributed to inflating property prices in major cities like Barcelona and Madrid, making housing unaffordable for local residents. The vast majority of Golden Visas granted were for real estate purchases, highlighting the program’s impact on the housing market.
• EU Directive and Criticism: The European Union has expressed concerns over Golden Visa schemes across member states, citing risks related to money laundering, corruption, and security. Spain’s move aligns with a broader trend in Europe, with countries like Portugal also having abolished or significantly altered their Golden Visa real estate options. The termination was formalized through Organic Law 1/2025, published in Spain’s Official State Gazette (BOE).

Impact on Current Holders and Pending Applications

For those who have already successfully obtained a Spain Golden Visa through any investment route before April 3, 2025, their residency rights will be retained. Existing visas and authorizations will remain valid for the period initially granted. Similarly, applications submitted prior to April 3, 2025, will be processed under the regulations that were in effect at the time of submission.

Renewals for existing Golden Visa holders will also be processed according to the original conditions of their initial authorization.

However, no new applications for the Golden Visa (including the real estate option) will be accepted after the April 3, 2025 deadline.

Eligibility Criteria (Historical Context)

To provide a comprehensive understanding of the program, here were the general eligibility criteria that applicants had to meet when the Spain Golden Visa was active:

• Be over 18 years of age.
• Be a non-EU, non-EEA, or non-Swiss citizen.
• Possess a clean criminal record from their country of origin and any country they had resided in for the past five years.
• Have valid comprehensive health insurance from a company operating in Spain, offering coverage equivalent to the Spanish National Health System.
• Demonstrate sufficient financial means to support themselves and their dependents without needing employment in Spain (e.g., 400% of Spain’s Public Multiple Effects Income Indicator (IPREM) for the main applicant, plus 100% for each dependent).
• Not be on the nation’s list of undesirable people and not have been previously refused visas or entry into the Schengen zone.

Application Process (Historical Context)

While new applications for the Golden Visa’s real estate route are closed, understanding the previous process can offer insight into investor residency programs:

1. Make the Qualifying Investment: The primary step was to complete the required investment (e.g., purchasing the €500,000 property).
2. Gather Required Documents: Applicants needed to compile a comprehensive set of documents, including a valid passport, proof of investment, criminal record certificates (apostilled and translated), proof of health insurance, and evidence of sufficient financial means.
3. Submit the Application: Applications could typically be submitted at the nearest Spanish Embassy or Consulate in the applicant’s country of residence, or electronically if already in Spain.
4. Await Processing: The relevant authorities (e.g., the Large Business and Strategic Collectives Unit – UGE) would review the application.
5. Biometrics Appointment: Once initial approval was granted, applicants usually had to attend a biometrics appointment in Spain to provide fingerprints.
6. TIE Issuance: Upon final approval, a Foreigner Identity Card (TIE) would be issued, granting the holder their residency.

Benefits of the Spain Golden Visa (Historical Context)

The Spain Golden Visa offered several attractive benefits that made it a popular choice for investors:

• Permanent Residency and Path to Citizenship: After five years of maintaining residency (not necessarily living full-time), investors could apply for permanent residency. After ten years, they could apply for Spanish citizenship, subject to integration requirements like language and culture tests.
• Schengen Area Travel: Holders enjoyed visa-free travel within the Schengen Zone, allowing seamless movement across 27 European countries.
• Flexibility on Stay: Unlike many other residency permits, the Golden Visa did not require the applicant to reside in Spain for a significant period. A single visit per year was often sufficient to maintain the visa.
• Family Inclusion: The visa extended to immediate family members, including the spouse/partner, financially dependent children, and dependent parents, allowing the whole family to live, work, and study in Spain.
• Work and Business Opportunities: Golden Visa holders had the legal right to work and conduct business activities anywhere in Spain.
• Access to Public Services: Residents gained access to Spain’s high-quality public healthcare and education systems.
• Tax Benefits: Depending on their residency status, investors could potentially benefit from favorable tax regimes, such as “Beckham’s Law,” which offers a flat tax rate on Spanish-earned income for new residents for up to five years.

Key Investment Options (Historical Context)

When the program was fully active, investors had several qualifying options, with real estate being the most prevalent:

Alternatives to the Spain Golden Visa for Residency

With the termination of the real estate Golden Visa, individuals looking to reside in Spain now need to explore alternative pathways. Spain still offers several visa options for non-EU citizens, each with its own requirements and benefits:

• Non-Lucrative Visa (NLV): Ideal for individuals with stable passive income (e.g., pensions, investments) who do not intend to work in Spain. It requires demonstrating sufficient financial means (around €28,000 per year for the main applicant) and private health insurance.
• Digital Nomad Visa: A recent addition, this visa allows remote workers and freelancers to live in Spain while working for companies or clients outside Spain. It requires proof of remote work, sufficient income, and health insurance.
• Entrepreneur Visa: Geared towards those who plan to launch innovative business ventures in Spain that contribute significantly to the country’s economy or create jobs.
• Work Visa: For individuals who have secured a job offer from a Spanish employer.
• Student Visa: For those enrolling in recognized educational institutions in Spain.
• Family Reunification Visa: Allows family members of legal residents or citizens to join them in Spain.

Final Thoughts

The Spain Real Estate Golden Visa played a significant role in attracting foreign investment and talent to Spain for over a decade. Its termination, particularly the real estate route, marks a new chapter in Spain’s immigration and investment policies, reflecting the government’s commitment to addressing housing affordability. While the direct real estate investment route to residency is no longer available, Spain remains an attractive destination with diverse opportunities. Prospective residents should thoroughly research the current visa options and consider consulting with immigration professionals to find the most suitable pathway for their circumstances.