Spain has officially announced the closure of its golden visa scheme, which grants residency to non-EU nationals in exchange for financial investment.
The scheme will end on April 3, 2025. This decision comes in response to concerns about rising property prices and housing shortages in major cities, including Madrid and Barcelona. Between 2013 and 2023, Spain issued 14,576 golden visas, with 94% of them linked to real estate investments.
The majority of applicants hailed from China, Russia, the United Kingdom, the United States, Ukraine, Iran, Venezuela, and Mexico. In Barcelona, purchases made under this scheme accounted for over 5% of annual residential sales.
Prime Minister Pedro Sánchez stated that the golden visa scheme contributed to escalating property prices, which limited access to affordable housing for local residents. Following Spain’s decision, interest in alternative golden visa schemes has increased, particularly in Greece and Portugal. Greece has experienced a rise in applications, with monthly figures increasing from 302 to 383 by November 2024. The Greek scheme boasts one of the fastest processing times, granting residency within 60 days. The minimum investment requirement previously was €250,000, but in September 2023, it was raised to €800,000 in high-demand areas such as Athens and Santorini, and €400,000 in other regions.
Residency holders are not required to reside in Greece to maintain their status. Portugal has also seen a surge in demand for its golden visa scheme, introduced in 2012, which has raised over €7 billion. While Portugal removed real estate investment as a qualification in 2023, non-EU applicants can still obtain residency by investing a minimum of €500,000 in eligible funds. Portugal is currently working to reduce a backlog of 45,000 to 50,000 applications. The Agency for Integration, Migration, and Asylum (AIMA) has introduced a digital system to expedite processing. Investors can now submit applications online, and biometric appointments will be scheduled automatically within 30 to 90 days. Documents will be accepted in English, Spanish, and French without needing translation.
Hungary reintroduced its golden visa scheme in July 2024 after previously discontinuing it in 2017. The Guest Investor Program offers residency through three options: investing in real estate funds, purchasing property, or donating €1 million to education. Visa holders can include family members and travel freely within the EU. Italy has had a golden visa scheme in place since 2017. It offers a two-year residence permit to non-EU nationals who invest at least €250,000 in an Italian limited company.
The scheme allows visa holders to include family members and enjoy a favorable tax regime. Concerns Regarding Golden Visa Schemes Golden visa programs allow non-nationals to obtain residency or citizenship through financial investment, bypassing standard requirements such as language proficiency or residency duration. Critics argue that these schemes primarily benefit wealthy individuals, contribute to rising property prices, and may enable financial misconduct. Concerns about money laundering and tax evasion have prompted increased scrutiny.
The European Parliament has called for stricter regulations, including proof of genuine ties to the country and transparency in publishing lists of new citizens. EU officials have also expressed concerns about the impact on freedom of movement. They argue that granting residency or citizenship through investment undermines the concept of European citizenship.
While many EU countries have closed or tightened their golden visa schemes, demand remains strong in countries that still offer investor residency. The future of these programs will depend on further regulatory changes and political decisions at both national and EU levels.
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