Spain Ends Golden Visa Program as Congress Overrides Senate Veto

Spain’s Congress has formally ended the "Golden Visa" program, a scheme that granted residency to non-EU nationals who invested €500,000 or more in real estate.

The decision was approved on December 19, 2024, with 177 votes in favor and 170 against, overriding a prior veto by the Senate earlier this month.

Key Factors Behind Congress’s Decision

In December 2024, the Senate, dominated by the opposition Popular Party (PP), vetoed the repeal of the Golden Visa program, arguing that ending the scheme could harm Spain’s real estate market and deter foreign investment. However, Congress, citing concerns about the program’s negative effects, used its majority to overturn the veto.

The primary reasons behind the repeal were surging property prices, particularly in cities like Madrid and Barcelona, which critics linked to the influx of foreign investors. Additional concerns about the potential misuse by criminal networks also contributed to Congress’s decision to end the program.

Provisions for Investors with Pending Applications

To minimize disruption, the legislation includes measures to protect pending applications. Investors who submit their requests before the law’s publication in the Official State Bulletin (BOE) will still be eligible for residency under the existing Golden Visa regulations. These provisions offer a grace period to applicants already in the process.

While the repeal has been approved, the exact timeline for its full implementation remains uncertain. Estimates suggest the law will take effect between 20 days and three months after its publication, leaving a limited window for potential applicants to act.

Implications for Global Investment Trends

The termination of Spain’s Golden Visa program marks a big change in the global residency-by-investment landscape. As one of Europe’s most prominent programs, its closure may redirect investor interest to other countries offering similar programs. Spain’s move also signals a broader European trend of scrutinizing residency-by-investment initiatives to address their impact on housing markets and local economies.