Madrid has abolished the property-based residency route and is signaling a pivot away from housing-linked visas. Here’s what investors should know now.
Lead & Context
Spain has formally ended real-estate-based golden visas—residence permits for non-EU citizens who purchased property worth €500,000 or more. The move, framed as a response to housing affordability pressures, took effect in early April 2025, closing the door on the sector that drove a decade of inflows.
What ended—and what didn’t
- Terminated: The route that tied residency to a qualifying property purchase has been shut.
- Under review/alternative routes: Government signaling suggests the program may continue via non-property options (e.g., qualifying funds, business activity), though the specifics remain to be finalized or communicated in full. Investors who filed before the cut-off should remain covered under transitional provisions.
Why now
Policymakers argue the property route inflated prices in key cities. Reform follows similar steps in Portugal, which previously removed real estate from its golden visa menu, redirecting capital to productive investments.
Investor implications
- Pipeline risk: Deals that have not closed face eligibility risk unless protected by transitional rules; verify with counsel on a case-by-case basis.
- Portfolio re-aim: Expect flows to tilt to Portugal (funds) and Greece (select real estate tiers), plus Malta (MPRP residency) for families wanting Schengen access with clearer lanes. Global Residence Index
- Diligence upgrade: Where alternative Spanish routes remain, anticipate tighter AML/KYC and demonstrable links to the productive economy.
What to watch
- Implementing regulations spelling out which non-property routes survive, and their minimums.
- Knock-on effects in Barcelona/Madrid prime markets and fund-raising toward Iberian private-capital vehicles.
Bottom line
The Iberian door isn’t closed—but the housing key no longer fits. Investors should pivot to fund and business routes in Spain (as clarified) or re-deploy toward Portugal, Greece, or Malta, depending on timeline and family priorities.
Action for readers: Freeze new Spain property files; model alternatives in Portugal (funds) or Greece (regional thresholds) and book counsel for written eligibility opinions before wiring deposits.