The Number of Applications for Spain’s Golden Visa Surges Ahead of Program’s End

The number of applications for Spain’s Golden Visa program has skyrocketed as the program nears its official termination date of April 3, 2025. Spain's decision to close the program, aimed at granting residency in exchange for investments, is part of a government effort to address the housing crisis, partly attributed to the influx of foreign investments in real estate.

According to Golden Partners, the volume of applications tripled in June 2024. Following the announcement of the program’s termination in January 2025, the surge in applications became even more pronounced. On January 3, 2025, the day the decision was published in Spain’s Official State Gazette (BOE), a significant spike in submissions was recorded.

"We are witnessing unprecedented interest from clients in countries like Mexico, Chile, Venezuela, China, the U.S., Russia, and Germany. People are rushing to seize their last opportunity," Golden Partners representatives said.

A Decade of Investment-Driven Residency
Launched in 2013, the Golden Visa program allowed foreign nationals to obtain residency in Spain in exchange for investments. The most popular option was the purchase of real estate valued at €500,000 or more.

Key Beneficiaries:
China, the U.S., and the U.K. were among the leading sources of applicants.
In 2022, Spain issued 2,017 visas under the program.
By 2023, this number grew to 3,273 visas, and since its inception, over 15,300 people have participated.
Reason for Termination
The decision to end the program was initiated by Prime Minister Pedro Sánchez in April 2024. The main objective is to combat the housing crisis and reduce real estate speculation.

"Investments through this program have driven up housing prices, making homes unaffordable for locals. Our priority is to improve housing accessibility," said Isabel Rodríguez, Spain’s Minister of Housing.

Additionally, authorities argue that the program contributed to asset concentration among a small number of investors, exacerbating social inequality.

Impact on the Real Estate Market
The closure of the Golden Visa program marks a significant shift for Spain’s real estate market. Over the years, the program attracted wealthy foreign investors, boosting demand for premium properties and driving up prices. Following its termination, the government anticipates reduced pressure on the housing market and improved affordability for Spanish families.

However, experts warn that this decision could deter major international investments, which have played a crucial role in Spain’s economy. While the government aims to stabilize the housing market, the move raises concerns about Spain's competitiveness compared to other EU countries that continue to offer similar programs.

A Balancing Act for Spain’s Future
The Golden Visa program has been instrumental in attracting investments and sustaining economic activity in Spain. However, its impact on the housing crisis cannot be overlooked. Terminating the program is a step towards addressing housing affordability but also poses challenges for Spain’s position in the global investment landscape.

Without alternative measures to attract foreign capital, Spain risks diminishing its appeal to international players, which could have long-term implications for its economy.