Golden Visa applications surge as Spain moves closer to banning program

The countdown to the end of golden visas in Spain has begun. Last week, Congress approved a bill to scrap the scheme, which allows wealthy foreigners to secure residence permits in exchange for investment in the country.

Introduced in 2013 by the conservative People's Party to attract foreign investment, the program grants visas to foreign investors who commit at least €500,000 in Spanish real estate, as well as those who invest in company shares or public debt.

Most applications stem from housing investments, which has been a key factor behind the government's decision to abolish the program, but the ban could also extend to other types of investment.

However, the measure will not take effect immediately, as it still requires Senate review for potential amendments before returning to Congress for final approval.

This means the golden visa program is unlikely to be officially abolished before January 2025. Until then, applications can still be submitted and approved, likely leading to a surge in requests in the coming weeks.

In fact, applications for golden visas have already increased by 38% in the last six months after PM Pedro Sánchez announced the planned ban, according to newspaper La Vanguardia.

Between January and March this year, the government issued an average of 69 golden visas per month. From April to October, the monthly permits rose to 95.

So far this year, 780 golden visas have been issued, according to Spanish government data revealed through a parliamentary question by the Basque nationalist party EH Bildu and obtained by Catalan News. The number is expected to increase as Congress moved one step closer to a ban.

Since its inception in 2013, more than 15,300 individuals have benefited from the golden visa program.

Although the annual issuance of these visas remained below 1,000 in most years, it surged to over 2,000 in 2022 and surpassed 3,200 in 2023, according to data from the housing ministry reviewed by Catalan News.

The largest number of golden visa recipients are Chinese nationals, with over 3,300 visas issued between 2013 and 2023, followed by 3,100 Russians and more than 1,000 UK citizens.

Other countries with significant numbers of beneficiaries include the United States, Ukraine, Iran, Venezuela, and Mexico.   

While China leads in the number of visas issued, the United States tops the investment chart, contributing €1.6 billion compared to €768 million from Chinese citizens from 2018 to 2022, according to data by Eldiario.es.

The regions with the highest demand for golden visas include Barcelona, Madrid, Málaga, Alicante, Valencia, and the Balearic Islands. Precisely in these areas is where house prices in Spain are the most expensive. 

"We will take the necessary steps to ensure that housing is a right, not a speculative business," said Sánchez in April, as he announced the ban on golden visas, which is now on its way to being abolished.

Read this article to learn more about Golden Visas, who is eligible, and how to apply.