Abolition of the Golden Visa

On January 3, 2025, a text of legislative amendments was published, including the
abolition of investor residencies. It can now be confidently stated that the decision to
cancel the issuance of investor residencies has been formalized at the legislative level.

The “Golden” route

In 2023, Portugal also began reforming its program, excluding the possibility of
investing in coastal real estate, reducing the attractiveness of this option.

Cyprus offered residency and even citizenship for investments, but its citizenship
program was discontinued in 2020 due to allegations of corruption and abuses.
However, the residency-by-investment program remains operational.

The United Kingdom shut down its “golden visa” program in 2022, citing risks
related to illegal funds and corruption. Nevertheless, the country continues to offer
other visa programs to attract highly skilled professionals and entrepreneurs.

Meanwhile, Greece continues to provide one of the most affordable “golden visa”
programs in Europe. The required minimum investment threshold in real estate is just
€250,000, making it one of the cheapest programs in the EU. However, Greek
authorities are also considering tightening the rules to attract larger and more
sustainable investments.

In the United States, the EB-5 program allows foreign investors to obtain a residence
permit through investments in the country’s economy. The minimum investment
amount is $800,000 for regional centers and $1,050,000 for direct investments.
Despite the high costs, the program remains popular due to the prospect of obtaining
U.S. citizenship.

Economics is not always the priority

The decision to cancel the “golden visa” program stems from a number of factors.
On one hand, authorities aim to minimize risks associated with potential abuses. On
the other hand, the government plans to attract investors through more structured
and long-term mechanisms, such as programs to support businesses, innovative
projects, and startups.

Spain’s “golden visa” program, introduced in 2013, became an important tool for
attracting investments into the country’s economy. It offered foreign nationals the
opportunity to obtain a residence permit in exchange for significant investments, most
often in real estate. Over the past 10 years, the program has brought Spain
approximately €6 billion in investments.
Tax revenues from real estate transactions, such as the Property Transfer Tax (ITP),
became a significant source of income for regional budgets. The influx of capital from

foreign investors strengthened the economy during crises such as the 2008 financial
crisis and the COVID-19 pandemic.

In major cities like Madrid and Barcelona, the program stimulated demand for
premium real estate, leading to price increases in this segment. On the coast and in
regions popular with tourists, the program encouraged investments in villas and resort
properties. At the same time, high demand for premium real estate led to price
increases, making housing less affordable for the local population.

This argument likely became the reason for the decision to abolish investor
residencies.

Golden Status: Preserving Privileges for Those Already Approved

For current investors, the changes pose minimal risks: the decisions to grant
residencies have already been made and cannot be revoked retroactively.

A natural question arises: what will happen to already approved residencies? They will
remain valid and will continue to be renewed as their validity periods expire. The law
proposes an interesting scheme: all residencies approved at the time the law takes
effect will be renewed under the rules in effect at the time of their approval.

If you are planning to submit documents for an investor residency, you must act
immediately to meet the April 3, 2025, deadline. If you have not yet initiated the
investment process (which can include several options, such as real estate
investments), we strongly recommend starting it as soon as possible—time is literally
running out.

Catching the last train

The legislative changes will take effect on April 3, 2025. After this date, it will no
longer be possible to submit documents for investor residency. All applications
submitted before April 3, 2025, will be reviewed and decided upon. For example, if
you file an application on April 1, it will not be automatically rejected on April 3 but
considered on its merits.

Adiós, Golden Visas

If you are considering investing in other countries or wish to take advantage of the
remaining opportunity in Spain before April 3, 2025, our team is ready to provide
comprehensive support. We analyze options, assist with document preparation, and
develop the optimal strategy to achieve your goals.