Goodbye Golden Visa: How the End of Spain’s Real Estate Investment Program Will Affect the Housing Market and Foreign Investment

The Spanish government has recently announced the end of its golden visa program, which provided residence permits to non-EU citizens who invested at least 500,000 euros in real estate. This decision was made after concerns about market stress, price increases, and speculation that the program had contributed to.

Chinese and Russian investors have been the biggest beneficiaries of the program since its launch in 2013, with most approvals concentrated in cities like Madrid, Barcelona, and Valencia. Real estate agencies catering to Chinese investors have seen a significant impact from the golden visa program, with some investors purchasing multiple properties to meet the investment requirements. However, the elimination of this program is expected to have a negative impact on foreign investment in Spain.

The decision by the Spanish government to eliminate the golden visa program comes after warnings from Brussels about potential money laundering. The recent surge in visa approvals for lower-priced investments has raised concerns about its impact on the housing market. Law firms processing golden visas for Asian investors have noticed a decline in requests due to stricter anti-money laundering measures.

Current applicants and investors are already expressing unease about the future of foreign investment in Spain as it transitions away from the golden visa program. It remains uncertain how foreign investment will be affected by this change as other countries may step up their efforts to attract foreign investors with different programs and incentives.