What Was the Golden Visa?

Launched in 2013 during the economic crisis, the golden visa scheme aimed to attract foreign capital. It allowed non-EU citizens to obtain a Spanish residency permit by investing at least €500,000 in property. It offered major advantages, such as no obligation to live permanently in Spain and free movement within the Schengen Area.

Over the years, it became a highly attractive option for investors from China, Russia, the UK (after Brexit), Gulf countries and Latin America.

Why Is It Being Abolished?

The Spanish government has opted to end this policy after noticing a sustained increase in home purchases by non-resident foreigners. This has fuelled debate about access to housing for local citizens. According to the Ministry of Housing, over 3,200 golden visas were granted in 2023 alone for property purchases, mostly in Madrid, Barcelona, Málaga, Alicante, the Balearic Islands and Valencia.

What Does This Mean for the Property Sector?

Although golden visas accounted for only 0.3% of total real estate transactions in Spain, their impact on the luxury segment was notable. In exclusive areas like Marbella and certain municipalities in the Balearic Islands, they represented up to 10% of all transactions.

The Costa Blanca, where GestaliHome operates actively, has been a top destination for such buyers, thanks to its combination of lifestyle, climate and high-end property opportunities.

With the programme’s termination, the profile of foreign buyers may shift slightly, favouring those looking for more permanent residence or frequently used second homes over pure investment-driven purchases.

Now that this visa is no longer available, purchasing an expensive property alone is no longer enough to gain residency. Non-EU nationals will have to rely on other types of permits — such as work visas, non-lucrative residence permits, or permits based on family or social ties — if they wish to live in Spain.