Organic Law 1/2025, passed by the Cortes Generales and published in Spain's Official State Gazette (Boletín Oficial del Estado) on 2 April 2025, abolished the property investment residence programme — known as the Golden Visa — that Law 14/2013 of 27 September (supporting entrepreneurs and their internationalisation) had introduced into Spanish law. The abolition took effect on 3 April 2025, with existing holders' acquired rights preserved.
Spain’s Golden Visa: A Twelve-Year Balance
The Golden Visa programme was created by Article 63 of Law 14/2013 with the explicit objective of attracting foreign capital in the context of the economic crisis and the collapse of the Spanish property market after 2008. The original conditions established four qualifying investment routes: purchase of property worth at least €500,000 free of encumbrances; investment in Spanish public debt exceeding €2 million; acquisition of shares or interests in Spanish companies exceeding €1 million; or bank deposits in Spanish financial institutions exceeding €1 million.
Between 2013 and 2024, the programme granted approximately 14,500 initial residence authorisations (excluding renewals and family member extensions). The property route was by far dominant, representing more than 90% of grants. The principal countries of origin were China (the majority), Russia, the United Kingdom (before Brexit), Ukraine and Venezuela.
The Shift in Context: Housing Affordability
The decisive argument for abolishing the programme was the reversal of the economic and social context. In 2013, Spain’s property market needed foreign capital; by 2024, the central problem was precisely the opposite: a shortage of affordable housing supply in major cities, compounded by foreign investment demand and tourism pressure. The government cited evidence — academically debated — that Golden Visa purchases had contributed to upward price pressure in areas such as the Eixample in Barcelona, the Salamanca district in Madrid, and certain areas of Málaga and Alicante.
Prime Minister Sánchez’s announcement on 8 April 2024 of the programme’s abolition triggered a wave of last-minute applications: between April and December 2024, the number of Golden Visa applications submitted was significantly above the historical average, as applicants sought to complete their investment before the final closure.
Transitional Arrangements: Acquired Rights
Organic Law 1/2025 establishes a transitional regime that preserves acquired rights. Residence authorisations granted before 3 April 2025 remain valid for the full period for which they were granted, and their holders may apply for renewal under the legal regime in force at the time of the original grant.
Applications submitted before 3 April 2025 but not yet decided will be processed and resolved under the previous legislation. Applications submitted after that date will not be accepted.
Available Alternatives: A Map of Options for Non-EU Investors
The abolition of the property Golden Visa does not close Spain as a destination for non-EU nationals with financial capacity. The following routes remain available:
Non-lucrative residence visa. Provided for under Article 37 of Royal Decree 557/2011 (Immigration Regulations), this permits residence in Spain without employment, on proof of sufficient financial means (approximately 400% of the annual IPREM for the main applicant, plus 100% per additional family member). No minimum investment is required, though the applicant must demonstrate sufficient regular income.
Expatriate regime (Article 93 LIRPF — “Beckham Law”). Allows individuals who transfer their tax residence to Spain to pay income tax at 24% on Spanish-source employment income up to €600,000 per year for six tax years. Reformed by Law 28/2022 (Startups Law) to include self-employed workers, researchers and family members.
Digital nomad visa. Introduced by Law 28/2022, this allows remote workers to establish themselves in Spain while providing services to foreign employers or clients. It can be combined with the expatriate regime to optimise the overall tax position.
Investment in financial assets. The Golden Visa routes based on investment in public debt (€2 million), Spanish company shares (€1 million) or bank deposits (€1 million) were not eliminated by Organic Law 1/2025 and remain valid pathways to investment-based residence for major investors.
Impact on the Luxury Property Market
The closure of the programme has reduced demand for properties above €500,000 from non-EU investors with immigration motivations. However, the market for high-end properties in Spain draws demand from multiple sources — EU citizens, legally resident non-nationals, and buyers from third countries purchasing without any connection to residence programmes — so the net effect on pricing in the premium segment has been limited.
For real estate advisers and international law firms that had built service lines around the Golden Visa, the practical impact is a shift in the client advisory conversation: from “which property qualifies?” to “which residency route best fits your profile, your tax position and your long-term plans in Spain?”
At BMC, our legal and international tax teams advise non-EU nationals on residency options and tax optimisation when relocating to Spain. Learn about our immigration and international tax services.
