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Abolition of Golden Visas in Spain from 2025, Legal Implications and Possible Alternatives

Since their introduction in 2013, so-called “Golden Visas” in Spain have been one of the most widely used instruments by foreign investors to obtain legal residency in the country in exchange for making significant real estate or financial investments. However, the Spanish Government has recently approved new legislation abolishing this type of visa, with legal effect from 3 April 2025.

In this article, we analyse the details of this measure, its potential impact on individuals who currently hold a Golden Visa or are in the process of applying for one, as well as the legal alternatives that may be available once the new regulations come into force.

1. What is the Golden Visa and why has it been repealed?

The “Golden Visa” or residency by investment visa was created as a mechanism to encourage foreign investment in Spain, mainly through the purchase of real estate assets above a certain minimum value (usually €500,000), the acquisition of shares or government bonds, or the undertaking of business projects deemed to be in the public interest.

Despite its advantages, in recent years there has been criticism and growing political debate surrounding this programme, arguing that it could drive up property prices, create social imbalances, and encourage speculation. The Government, taking these concerns on board and following the trend in other European countries, has decided to abolish this legal framework.

2. When does the abolition come into force?

According to the new law, the Golden Visa scheme will be abolished with effect from the 3rd of April 2025. From that date onwards:

  • No further applications based on Golden Visa criteria will be accepted.
  • Pending applications that have not been resolved before that date may be affected and, presumably, will not be granted under the old rules.
  • Renewals of Golden Visas granted prior to the date of entry into force may be subject to transitional legislation, which will need to be carefully examined once the implementing regulations are published or clarified.

3. Effects on those who already hold a Golden Visa

For individuals who already have a valid, in-force Golden Visa, it is essential to review the new legislation and any potential transitional provisions. Sometimes, the legislator establishes a grace period for those who obtained residency under the previous law, allowing them to renew for the last time or to maintain their status until the initial validity period expires.

Nevertheless, it is important to keep an eye on any changes introduced in the implementing regulations (usually through royal decrees or internal instructions), as these may outline specific conditions for renewal or for converting this permit into another form of residency.

4. Residence alternatives in Spain after the abolition

Once the Golden Visa is no longer available, other routes to obtaining residency in Spain remain. Some of the most common include:

  1. Residency for employment reasons:
    • Employment contract with a Spanish company (authorisations for employed work).
    • Self-employed work authorisations for those setting up a business or working freelance.
  2. Long-term (EU) residency:
    • After several years of continuous legal residence in Spain, one may apply for long-term residency in Spain or even EU long-term residency.
  3. Non-lucrative residency:
    • For those who have sufficient financial resources to live in Spain without working. A minimum amount of savings or recurring income is usually required.
  4. Entrepreneur visas and innovation projects:
    • Although the Golden Visa is disappearing, the Government may keep or strengthen programmes for entrepreneurs and R&D&I (research, development, and innovation) investors.
  5. Family reunification:
    • For those who have direct relatives (spouse, registered partner, children, or ascendants) with legal residency in Spain.

Each case should be examined considering the applicant’s circumstances: economic, family, professional situation, etc.

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1. Residency for employment reasons

Residency in Spain for employment reasons is one of the most traditional and well-established ways of obtaining a legal stay permit in the country. This option can essentially be divided into two main types: authorisation to work as an employee and authorisation to work on a self-employed basis.

  • Employee work authorisation is intended for those who wish to work in Spain under an employment contract with a Spanish company or employer. The employer must prove that the job cannot be easily filled by people already in the country (considering aspects such as the National Employment Situation), unless the occupation is listed in the Catalogue of Hard-to-Fill Occupations. The company must also demonstrate its financial solvency and submit a job offer on behalf of the future foreign worker. The applicant, for their part, must meet requirements such as having no criminal record in Spain or in their country of origin, and must not be in an irregular situation in Spain.
  • Self-employed work authorisation is for those who wish to undertake an economic or professional activity on an independent basis. This permit requires the preparation of a business plan proving the feasibility and profitability of the proposed activity. Factors such as job creation, contribution to innovation or the local economy, and the applicant’s financial capacity are taken into account. In many cases, applicants must also submit evidence of their training or experience in the relevant business area, as well as the licences and permits required to practise the profession where applicable.

The application process, both for employee and self-employed work, usually begins at the Spanish consulate in the applicant’s country of residence, although there are exceptions and specific procedures for those already legally in Spain. It is also crucial to be mindful of renewal deadlines and the possibility of family reunification, where relatives may benefit from the legal residence of the main permit holder. Finally, after a certain period of residence and social security contributions in Spain, it is possible to apply for long-term residency and, with time, even Spanish nationality, provided that all legal requirements are met.

2. Long-term (EU) residency

Long-term (EU) residency is a legal status that grants a series of rights and benefits to foreigners who have legally and continuously resided in Spain for a minimum of five years (or in another EU Member State under certain agreements). This type of permit is attractive to those who wish to establish themselves in Spain for the long haul, as it offers greater stability and often facilitates mobility and employment rights within the EU.

To apply for long-term residency in Spain, the applicant must have resided legally and effectively for five years, without prolonged absences exceeding the permitted limits (usually no more than six consecutive months outside Spain, nor more than ten months in total over those five years, unless there are justified reasons). It is also essential to have no criminal record and to be up to date with legal and tax obligations in the country.

One of the main advantages is that, once granted, it is no longer tied to a specific job or business project. This provides greater freedom to change employment, start self-employment activities, or even reside in other EU countries under certain mobility arrangements. It also makes family reunification more straightforward, as reunited family members acquire rights linked to long-term residency.

It is worth noting that, after obtaining long-term residency, there is the possibility of applying for Spanish nationality, once the relevant timeframes and requirements have been met, which vary depending on the applicant’s country of origin or if there are exceptional circumstances (for example, having Spanish ancestors, being married to a Spanish citizen, among others).

In short, long-term (EU) residency often represents the natural culmination of the integration process for those who have been living in Spain continuously and wish to put down roots in the country. However, one must comply rigorously with the minimum periods of legal residence and observe the rules on permit renewals, as well as fiscal and administrative obligations. This ensures access to one of the most stable and safeguarded migration statuses under Spanish and European law.

3. Non-lucrative residency

Non-lucrative residency is intended for non-EU citizens who wish to live in Spain without engaging in any paid employment or professional activity within the country. This route is very popular among individuals who have sufficient economic resources—whether from personal savings, passive income, or recurring revenues—and who wish to spend time in Spain for retirement, personal study (not leading to a formal qualification), or simply to enjoy the quality of life that Spain offers.

To obtain this type of permit, the authorities require proof of having sufficient financial means to cover living expenses in Spain without the need to work. This amount is usually calculated based on the IPREM (Public Indicator of Multiple Effects Income) and tends to be relatively high compared to other visa categories, precisely because it must guarantee that the individual will not need to rely on Spanish public services. In addition, a private health insurance policy that covers possible medical contingencies during the stay is necessary, as working is not permitted and, therefore, there is no entitlement to public social security on the same basis as active workers.

The application process usually begins at the Spanish consulate or embassy in the applicant’s home country or country of legal residence. Documentation typically includes: proof of financial solvency (bank statements, pension certificates, income from rented properties, investments, etc.), a criminal record certificate, a health certificate confirming good health, and the medical insurance policy covering Spain. Once non-lucrative residency is granted, the holder can reunite their family if they can also prove sufficient resources to support them.

This permit is initially granted for one year, renewable subsequently. Usually, after the first year, a two-year renewal is possible, and once the required time has passed, it becomes possible to apply for long-term residency. Importantly, although working in Spain is not allowed under this permit, there is no prohibition against receiving income from abroad (for example, from capital gains or remote work for a company based outside Spain), provided this is not interpreted as conducting a productive activity within Spain’s territory.

4. Entrepreneur visas and innovation projects

With the demise of the Golden Visa, the Spanish Government may bolster other existing programmes aimed at encouraging foreign investment and the development of projects of economic, technological, or innovative interest. In this regard, entrepreneur visas and authorisations linked to R&D&I (research, development, and innovation) projects are particularly relevant for those who wish to secure Spanish residency while contributing to the country’s business and economic fabric.

The main legal framework can be found in the Entrepreneurs’ Act (Law 14/2013), which lays out the basis for non-EU foreigners to apply for a residence permit if they present a business plan that is innovative or has a technological element to be developed in Spain. Such projects require prior assessment by a competent body (usually the Directorate-General for International Trade and Investments, part of the Ministry of Industry, Trade and Tourism) to determine whether the project is truly innovative, whether it will create quality jobs, whether it will add value to the national economy, or whether it will promote technological development.

Aside from fulfilling the essential innovation or economic interest requirement, the applicant must demonstrate their financial capacity to carry out the business plan, whether through personal funds, private investors, venture capital, or public grants and subsidies. It is also essential to have private health insurance and no criminal record.

Once the project is approved, the entrepreneur can process their visa and then apply for the residence permit, which also allows them to work in the newly established company. Unlike the non-lucrative residency permit, this type of residency does permit the holder to undertake work activities, provided they are directly related to the entrepreneurial project. It also enables family reunification and the possibility of applying for long-term residency once the legally required period of residence is met.

The key advantage of this route is that it aims to attract talent and boost the Spanish economy, meaning the process is often quicker than other, more traditional work visa types. However, it requires a clear definition of the project and its potential for growth, along with sound financial planning and compliance with all the legal obligations that come with setting up a company in Spain (Social Security registration, taxes, licences, etc.). Anyone considering this option should therefore seek proper legal advice to ensure the project meets the innovation and sustainability criteria demanded by the Spanish administration.

5. Family reunification

Family reunification is a highly relevant option for those who already hold or are seeking a Spanish residence permit and wish to bring their immediate relatives with them. This process helps maintain family unity while ensuring that each family member is covered by the appropriate legal framework. It is important to note that Spanish immigration law provides for various scenarios and requirements depending on the family relationship and the type of residence permit held by the sponsor.

Typically, a legal resident may reunite with their spouse or registered partner, their minor children (or adult children with disabilities or who are financially dependent on the main sponsor), as well as direct ascendants (parents or parents-in-law) who are likewise dependent on the principal permit holder, provided certain economic conditions are met. One of the key requirements is to prove sufficient financial resources to support the family’s needs, as the sponsor must bear responsibility for maintenance, accommodation, and health coverage, thus avoiding reliance on public resources.

The reunification process generally begins in Spain with an application submitted to the immigration office in the sponsor’s area of residence. Once this is approved, the relative abroad must then apply for the visa at the Spanish consulate in their home country or country of legal residence. After entering Spain, the reunited family member must complete the process to formalise their residence permit, which usually has the same duration as the sponsor’s.

One notable aspect of family reunification is that it grants family members access to Spain’s healthcare and education systems, and in many cases also grants them the right to work. However, these rights vary depending on the legislation and the specific situation, as the regime can differ if the sponsor holds a work residence permit, a long-term residence permit, or is protected by special European Union regulations.

Overall, family reunification is a cornerstone of Spanish immigration policy, aimed at promoting social and personal integration for families who decide to settle in the country. It is nevertheless a process that requires an individualised assessment, taking into account the sponsor’s legal and financial situation as well as the circumstances of the relatives seeking to join them. Proper legal advice helps expedite the procedure and avoid formal errors that could slow down or prevent the granting of these permits.

Global conclusion on residence alternatives

As can be seen, the end of the Golden Visa in Spain leaves other channels open, which, although potentially more demanding in terms of investment requirements, financial solvency, employment links, or innovative projects, also provide legal certainty and the possibility of medium- and long-term integration. The choice between these various paths largely depends on each applicant’s personal, professional, and financial circumstances. In any case, it is advisable to consult an immigration or residence specialist for specific guidance and to ensure all paperwork is correctly submitted.

5. Recommendations for those considering the Golden Visa or who already hold one

  1. Seek information in advance:
    If you were considering applying for the Golden Visa, it is vital to consult an immigration lawyer or expert as soon as possible to determine whether it is still feasible to submit your application before the law enters into force and what the relevant deadlines might be.
  2. Explore alternative routes:
    As the legal landscape will change in 2025, you should discuss the other residence options that may be beneficial in your specific situation with a trusted professional.
  3. Review renewal options and transitional arrangements:
    Individuals who already hold a residency permit by investment should check the expiry date of their current visa and whether it can be renewed before the new law takes effect. They should also keep track of any supplementary regulations that clarify their rights after 2025.
  4. Stay up to date:
    The authorities may issue further changes, decrees, or instructions clarifying how the Golden Visa repeal will be implemented. Ongoing monitoring of the legislation is essential to avoid non-compliance or unexpected developments.

The Spanish Government’s decision to abolish the Golden Visa from 3 April 2025 represents a significant shift in immigration policy aimed at attracting foreign investors. This new scenario necessitates a review of strategies and alternatives for those wishing to reside or invest in Spain in a legal and stable manner.

Given the complexity of the subject and possible legislative changes, it is crucial to obtain specialised advice. An expert immigration lawyer can advise you on the steps to follow, the requirements to be met, and the best options for each particular case.

This article does not constitute specific legal advice. For an assessment tailored to your circumstances, please consult a qualified legal professional.

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