66 UGLOBAL IMMIGRATION MAGAZINE
“ For those still interested in the Golden Visa option , the recommendation is to speed up the process of acquiring real estate property and file their applications for legal residence before April 3 , 2025
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THE REAL IMPACT OF THE GOLDEN VISA ON SPAIN ’ S HOUSING CRISIS
The government has stated that terminating the program will prevent the continued increase in housing prices . However , the announcement has been criticized as a populist measure . The total number of properties sold during the same period represents less than 1 % of the Golden Visas granted . This data suggests that the program has had little to no impact on the overall increase in Spain ’ s real estate market .
Another recent measure to address the housing problem was introduced by the mayor of Barcelona , one of the most visited cities in the world . Over the next five years , he eliminated short-term rentals . The mayor announced that the 10,101 tourist licenses allowing short-term rentals through Airbnb and similar platforms will not be renewed after November 2028 .
There is no doubt that Spain faces a housing problem , partially due to the influx of foreign nationals wanting to reside and invest in the country temporarily . This trend is also evident in major global cities , including New York , Miami , San Francisco , Lisbon and Paris . In Madrid , for example , the city has become the new Miami , as reported and promoted by the media worldwide . Since the pandemic , Madrid has experienced a tremendous surge in tourists who have fallen in love with the city and decided to purchase second homes .
The other two routes to obtain residence through the program are :
• Depositing at least 1 million euros in a Spanish bank ; or
• Purchasing government bonds for 2 million euros or investing 1 million euros in shares of a Spanish company .
CUT-OFF-DATE AND CURRENT INVESTORS
The State Official Bulletin ( BOE ) eliminating the Golden Visa program was published on Jan . 3 , 2025 . It provides a 90-day grace period . Thus , the last date that investors can submit their applications will be Apr . 3 , 2025 .
Current investors will be able to maintain and renew their residence applications .
Main Attractions of the Spanish Golden Visa Program
• Offers foreign investors a decision on their legal residence applications within 20 working days .
• A straightforward and fast track to Spanish citizenship , especially for those investors from Latin America . After only two years of legal residence in Spain , investors and their family members can apply for Spanish citizenship . For other nationalities , the waiting period is typically ten years .
• Foreign nationals are not required to live in Spain to renew and maintain their legal residence .
However , not all the blame lies with foreign nationals who want to enjoy the lifestyle and diversify their capital in Spain . The lack of reliable data , such as price comparisons from recent sales ( like the MLS system in the United States ), allows sellers to set prices freely without market guidance , hoping that a wealthy investor will be willing to pay , often much more than the actual market value . Property owners ' and agents ' speculation has also been a significant factor behind the housing crisis in Spain .
THE ENTIRE INVESTMENT PROGRAM WILL BE ELIMINATED , NOT JUST REAL ESTATE
The Golden Visa program in Spain offers three pathways to obtain legal residence , including the real estate investment option for a minimum of 500,000 euros . Although the program ' s termination is intended to control rising property prices , the other investment routes will also be eliminated .