Spanish Golden Visa

The Spanish Golden Visa was cancelled on 3 April 2025, no longer offering EU residency in exchange for investment. Despite this, its cancellation shouldn´t noticeably impact the property market since there are many other avenues for foreigners to obtain residency.

Spain´s Golden Visa

Launched in 2013, the Golden Visa, or the Investor Visa, was an investment-driven scheme offering residency rights in return for qualifying significant investments in specific Spanish assets. This requires a minimum investment of €500,000 in purchasing property in Spain, €1 million on shares in an eligible Spanish company, bank deposit or investment funds, or €2 million in Spanish treasury bonds.

A report by Transparency Internacional España pertains that 6,200 permits were issued under the scheme in its first ten years of operation until September 2023, of which around 96.18% were related to property purchases. Of the total permits given, nearly 18.7% were issued to Russian investors (1159 visas), 43.7% to Chinese nationals (2,712), about 3.3% to Iranian nationals, and 2.9% to US and UK citizens.

Once the Golden Visa is approved, the permit provides legal residency for one to three years and can be extended to your spouse and dependant children. It can then be extended if all the requirements are still met, and it can eventually lead to obtaining permanent residency and even Spanish nationality. Besides the advantages of living and working in Spain, the Spanish Golden Visa also allows for free movement within the European Union as part of the Schengen Agreement.

Cancellation of the Golden Visa

On 3 January 2025, the Boletín Oficial del Estado (BOE- state gazette) announced that the last day to apply for the Golden Visa would be 3 April 2025.

The change came after the announcement by Spain’s President Pedro Sánchez on 8 April 2024, where he stated plans to cancel the Golden or Investor visa scheme, saying, “We are going to take the necessary measures to guarantee that housing is a right and not a mere speculative business”, noting that visas linked to property purchases are centred in cities such as Barcelona, Madrid, Malaga, Alicante, Palma, and Valencia. Rental markets in these areas have been receiving increasing pressure due to the proliferation of holiday rental properties in recent years.

Given that less than 6,080 permits were issued for property purchases under the scheme throughout the country as at September 2023 (Transparency International España), its cancellation seems unlikely to impact the local property market significantly. This is especially true for Britons, given that only 177 had received permits under the scheme before September 2023, of which around 166 were related to real estate purchases across Spain. It seems that the overwhelming majority of UK citizens looked for more permanent means to enjoy their homes in the Spanish sun. The changes are also unlikely to have any major impact on the prime market, as the truly wealthy are likely to be tax residents in other places who do not spend more than 90 days in any one place.

The abolition of the Golden Visa or Investor Visa scheme will probably not affect those who have already received permits. However, there should always be other means for non-Europeans to obtain residency and freely enjoy their Spanish dream home.

Other avenues to Spanish residency

Now the Golden Visa has ended, non-EU citizens buying property in Spain still have many other options of visas to obtain Spanish residency.

Viable alternatives to the cancelled Golden Visa include work-based options like the employee, self-employment, and digital nomad visas, as well as more specialised categories such as the highly qualified worker or intra-company transfer visa. For those not intending to work, the Non-Lucrative Residence Visa is popular among retirees and individuals with passive income. Entrepreneurs can explore the Entrepreneur Visa, while students and researchers have dedicated study, internship, and academic visas. Additionally, Spain offers family reunification visas for the spouses, children, and dependent relatives of legal residents or EU citizens. Once a person has lived in Spain legally for five years, they may qualify for long-term residency. For personalised guidance, it’s best to consult your lawyer or contact the Spanish embassy in your country.

Popular places to buy property in Spain

For foreigners buying property in Spain, the areas of interest have been Madrid, Barcelona, Valencia, the Canary and Balearic Islands, and the Costa del Sol – particularly Marbella, the Golden Mile, and Benahavís. 

The Costa del Sol´s practical appeal includes plentiful and cheap flights around Europe, a relatively low cost of living, a prevalence of English speakers, an overall high level of safety, diverse a-list amenities, and an excellent variety of Spanish and international schools. For anyone interested in buying a property in Spain to enjoy the best of nature, weather and culture that it offers, the Golden Visa is an easy ticket for internationals to buy property in the Marbella area, and enjoy it as much as they like.

It´s important to note that purchasing a property in the Costa del Sol has the following costs:

• Resale property transfer tax (ITP) of 7% – one of the lowest rates in Spain
• Buyers purchasing new properties direct from the developer pay 10% VAT (value-added tax), instead of ITP
• Purchases of land plots attract 21% VAT tax, instead of ITP
• Stamp duty (AJD) of 0-2,5% depending on the property
• Notary and legal fees of 2-3% of purchase price
• Also, if you are in Spain more than 180 days in a year, you may be liable to pay Spanish taxes on your worldwide assets and income

Buying Property in Spain

Contact MPDunne & Hamptons International if you would like to know more about living in buying property in Marbella or the Costa del Sol.  We offer a curated selection of Marbella real estate and we can seamlessly and transparently guide you through the whole process with professionalism and experience.