Is the Appeal of Spain’s Golden Visa Fading?

Spain’s Golden Visa program is experiencing a significant decline in 2024. According to Catalan News, only around 936 visas are expected to be issued by the end of the year, representing a decrease of over 68% compared to the total number in 2023.  

While the government has not disclosed the number of applications submitted, the number of approved visas has dropped to its lowest level since 2021 (997 visas). Government figures show that as of October 2024, only 780 visas have been approved, averaging 78 visas per month.  

This is in stark contrast to the record 3,273 visas issued in 2023, despite the possibility of the program being canceled in 2025.

However, these figures only tell part of the story. While the number of approvals has decreased, the number of applications submitted remains unknown and is likely higher than in previous years.

According to the Spanish Ministry of Housing, foreigners invested a total of €4.8 billion in Spanish real estate between 2018 and 2022 alone.  

Of the visa applicants, 94% chose to invest in real estate with a minimum amount of €500,000. The remaining 6% opted for other options such as investing €1 million in a Spanish company or €2 million in government bonds.  

According to the list of visa recipients, Chinese citizens lead with 1,302 visas. Followed by Russians with 521 visas, Iranians and the United Kingdom with 124 and 123 visas respectively.

Data from Eldiario.es reveals an interesting contrast regarding US investors. Although ranking lower in terms of the total number of approved visas (113), US citizens lead in terms of total investment value, contributing €1.6 billion between 2018 and 2022 – double the €768 million of Chinese investors.

Spain’s high-end real estate markets, including Barcelona, Madrid, Málaga, Alicante, Valencia, and the Balearic Islands, have attracted the majority of Golden Visa investors.  

The Spanish government has been planning to end the Golden Visa program for some time, and the Spanish Socialist Workers’ Party (PSOE) has recently made some progress.  

The Congress, where the PSOE holds a majority, has recently passed a bill to end the Golden Visa program. Krista Victorio, Executive Director at Orience, said that regardless of what happens with the amendment, attracting foreign investment to Spain should be in the government’s best interest. The bill is now being considered by the Senate, where the opposition Partido Popular party holds control.  

Although senators may propose amendments or delay implementation for up to two months, they cannot permanently block the law.  

Potential investors still have a narrow window of opportunity to act. The bill includes a protection clause for applications submitted before being published in the Official State Gazette.

The article discusses the declining popularity of Spain’s Golden Visa program in 2024. Despite the potential cancellation of the program in 2025, the number of approved visas has significantly decreased. While the overall investment from the program has been substantial, the government is moving forward with plans to terminate it. The article also provides details about the different investor nationalities and their investment preferences.