Golden Visa in Spain: Current Status and What It Means for the Market

Spain’s Golden Visa — the residence permit for foreign investors who purchase real estate worth €500,000 or more — has been one of the drivers of international demand in Madrid’s premium segment over the past decade. Recent legislative changes have altered the landscape. Here is what you need to know if you are selling.

What the Golden Visa was

Introduced in 2013 under Ley 14/2013 (the Entrepreneurs’ Support Act), the Golden Visa allowed non-EU citizens to obtain a residence permit in Spain by purchasing real estate with a minimum value of €500,000.

The programme was particularly popular among buyers from China, Russia, the Middle East, and Latin America. According to data from Spain’s Ministry of Inclusion, more than 14,000 investor visas were granted between 2013 and 2023, with real estate investment being the predominant route.

What has changed

The Spanish government has announced the abolition of the Golden Visa for real estate investment. The measure, part of a broader housing policy package, aims to reduce price pressure in the most sought-after areas.

The key points:

• Golden Visas granted before the abolition remain valid and can be renewed
• Pending applications continue to be processed under the regulations in force at the time of application
• Other investment-based residence routes (€1M bank deposit, €2M investment in public debt, business project) are not affected by this change
• The Beckham Law (Ley Beckham — a special tax regime for relocated workers) remains in force and is not affected

Real impact on Madrid’s premium market

The impact of the Golden Visa abolition on Madrid’s premium market is more limited than the headlines suggest. The reasons:

The majority of international buyers in the premium segment were not purchasing because of the Golden Visa. They were buying for asset diversification, quality of life, legal certainty, or tax residency. The Golden Visa was an added benefit, not the primary motivator.

Buyers who were purchasing specifically for the Golden Visa were concentrated in the €500,000-€800,000 range — the minimum required to obtain the visa. The market for properties above €1,000,000 is largely unaffected.

Madrid is not Barcelona or the Costa del Sol. Coastal cities and Barcelona concentrated a higher percentage of purchases directly linked to the Golden Visa. In Madrid, the premium international buyer has more diversified motivations.

Latin American demand — the fastest-growing segment in Madrid — has other pathways. Many buyers from Mexico, Colombia, or Venezuela obtain residency through alternative routes (family reunification, entrepreneurship, non-lucrative residence), and their property purchases are independent of the residence permit.

What this means for homeowners who are selling

If you are selling a high-end property in Madrid:

Do not lower your price because of this change. Fundamental demand in prime areas does not depend on the Golden Visa. The factors that make your property attractive — location, quality, scarcity of supply — have not changed.

Do adjust your communication strategy. If your estate agent was marketing the property by highlighting the Golden Visa as a selling point, that angle no longer applies. Better to focus on the intrinsic appeal of the property and of Madrid as a city.

Identify your potential buyers. The international buyer purchasing in Salamanca or Chamartín above €1 million did not need the Golden Visa — and will continue to buy. The one purchasing at exactly €500,000 in a less prime area may redirect to other European cities that still maintain similar programmes (Portugal has eliminated theirs; Greece still has one).

Take advantage of the window. If the abolition generates temporary uncertainty in some segments, well-positioned premium properties can benefit: less competition for the attention of qualified buyers who did not depend on this programme.

Alternatives for international buyers

Foreign buyers interested in residing in Spain still have options:

1. Non-lucrative residence (residencia no lucrativa) — for those with sufficient passive income
2. Entrepreneur visa (visa de emprendedor) — for those starting a business project in Spain
3. Beckham Law (Ley Beckham) — a favourable tax regime for relocated workers (flat 24% rate for 6 years)
4. Family reunification residence (residencia por reagrupación familiar) — if family members hold legal residence
5. Investment in public debt (€2M) or bank deposit (€1M) — these still offer the investment-based residence option

An estate agent with experience in the international market can coordinate with immigration lawyers to guide the buyer toward the most suitable route for their profile.

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