To all our fellow expats in Spain, I saw some big news today that I felt I had to share, especially for those considering or preparing to get residency through property purchase via the Golden Visa cancellation. You really need to pay attention to this! Spanish Prime Minister Pedro Sánchez has publicly announced that the government is moving to abolish the ‘Golden Visa’!
Simply put, the ‘Golden Visa’ is the policy that allows non-EU citizens to obtain a Spanish residence permit by investing at least €500,000 in real estate. This policy has been in place since 2013 and has attracted many investors. I even have friends who came here this way, and at the time, it seemed like a very reliable method.
Why the Sudden Change?
The official reason given is to tackle the housing crisis. The Prime Minister stated that this model leads to intense speculative pressure on the real estate market, especially in major cities like Barcelona, Madrid, and Málaga, driving up prices and making it increasingly difficult for locals to rent or buy homes. The government wants to ensure that ‘housing is a right, not just a speculative business.’ It does sound somewhat reasonable, as property prices have indeed risen dramatically in recent years.
This policy change will have a significant impact on different groups of people. I’ve put together a simple table to make it clearer:
| Area of Impact | Previous Policy | Future Potential Spain property purchase regulations |
|---|
| Investment Threshold | Purchase of €500,000 property | Property investment no longer directly linked to residency |
| Main Beneficiaries | Non-EU investors | - |
| Key Advantage | Fast track to residency | Need to find alternative immigration paths |
| Potential Impact | A fast track for immigration | Real estate market might cool down? |
Although the specific bill hasn’t been passed yet, judging by the Prime Minister’s stance, it seems almost certain to happen. For those who have already invested their money and are in the middle of the application process, it’s unclear if there will be a transitional policy. And for those of us already living here, will this help stabilize housing prices? What does everyone think about this? Let’s discuss!
