Spain Ends Its Golden Visa, But Other Options Remain

Another one bites the dust.

Spanish Prime Minister Pedro Sanchez has presented an amendment to the current golden visa program in that country that would abolish all routes to residency by investment. Sanchez announced the imminent end of investment in residential property earlier this year, but left open options to invest in businesses, funds, and bonds.

According to Spanish news reports, the decision is based on research that showed that there were almost no golden visa applications other than through the housing investment. Nevertheless, the government is concerned that applicants from undesirable countries like Russia may try to gain Spanish residency through other investment forms, which could continue to have an impact on housing prices.

Countries across Europe’s southern perimeter have been winding down golden visa opportunities, either by eliminating them or increasing their price. At this point, the only country in the European Union and Schengen Zone that still offers a residential golden visa is Greece. But even there, other than the option to upgrade commercial property to residential for an investment of €250,000, the minimum investment is now between €400,000 and €800,000.

EU member Malta offers a visa that includes investments (or rental) of housing, but it is a hybrid between golden and independent means visas since it requires an income component as well.

Cyprus still offers a golden visa for housing investment, but it also requires a monthly income. That country is not part of the Schengen zone, diminishing its appeal.

Portugal still offers a golden visa, but residential housing investment is no longer eligible. Instead, potential immigrants are gravitating towards approved investment funds—but the minimum investment there is €500,000.

The key variables driving the evolution of golden visas in Europe are local housing markets and the state of the broader economy in each country. In Portugal’s case, pressure on housing prices made it impossible to maintain the residential option, but the country is still hungry for foreign capital. The Spanish economy has been doing well, and the government feels that it no longer needs to try to attract foreign money through immigration.

As I’ve reported numerous times, all of the countries that pioneered golden visas are moving towards income-based visas such as retirement, independent means, and digital nomad visas. They realized that the regular injection of income from foreign residences is far more valuable and sustainable than housing investment.

Evidently, Spain has decided that it’s going to adopt that approach as the only way to get a long-term residency permit in that country.