A review of the results of Spain’s ‘Golden Visa’ property-linked residency scheme

What impact did Spain’s controversial ‘golden visa’ programme have during it’s decade of operation?

Originally introduced in 2013 to attract foreign investment during a time of deep financial crisis, the Spanish ‘Golden Visa’ scheme granted residency to non-EU nationals in exchange for purchasing Spanish property worth at least €500,000 — no mortgage or leverage allowed. It was scrapped on 3 April 2024.

While the government has framed the decision as a response to increasing housing pressure, the programme’s actual impact on real estate investment, regional markets, and housing availability remains a point of strong debate.

A decade of golden migrations

The golden visa programme formed part of Law 14/2013 under the first term of Prime Minister Mariano Rajoy. Tied to wider efforts to stimulate Spain’s post-crisis economy, the legislation also offered residency to those investing €2 million in Spanish government bonds or €1 million in either Spanish company shares or registered investment funds.

In total, 22,430 golden visas were granted by the Spanish government between 2013 and 2023, according to the Permanent Immigration Observatory. If all of these were property-related, this would represent an estimated €1.04 billion annually flowing into the real estate sector, according to Rafael Rabat, co-founder of a financial advisory firm.

Initially slow to take off — with just 157 approvals in the first year — the programme saw a surge of interest following its cancellation announcement in April 2024.

Why now? Housing concerns take priority

By 2024, housing affordability had become a top political issue in Spain, especially in urban hotspots suffering from high demand and low supply. Sánchez’s government argued that golden visas were exacerbating housing market tensions, particularly in cities like Barcelona, Madrid, and Málaga.

“The elimination of these permits aims to open more opportunities for people struggling to access affordable housing in high-pressure zones,” said Isabel Rodríguez, Spain’s Housing Minister, during a parliamentary address.

Critics, however, question the rationale. “The volume of transactions driven by golden visas has been relatively low in the wider context of Spain’s property market,” said investment adviser Iñaki Usain. “What this move really does is signal instability, which could deter much-needed foreign capital.”

Who were the buyers?

According to immigration data, the bulk of golden visas went to Chinese (2,712) and Russian (1,159) nationals, followed by Iranians and Americans. A large share also went to non-EU European investors including Ukrainians and Britons post-Brexit.

This pattern mirrors broader geopolitical dynamics. “In many cases, investors came from conflict-affected regions like Russia or Ukraine, seeking assets that could safeguard wealth,” explained Gerard Marcet of consultancy firm Laborde Marcet.

Where did the money go?

Seven provinces accounted for 93% of golden visa-related home purchases: Barcelona, Madrid, Málaga, Alicante, the Balearic Islands, Girona, and Valencia.

Catalonia was by far the top destination, drawing nearly 40% of approved investor visas nationwide. Of the four Catalan provinces, Barcelona alone attracted 7,561 investments, well ahead of Madrid (3,990) and Málaga (3,976).

Marcet notes that in Barcelona, most golden visa activity involved Asian buyers, while Madrid attracted strong interest from Latin America, particularly Venezuelans, Colombians, and Mexicans, in addition to Asian investors.

Impact and aftershocks: Much ado about not so much?

The golden visa’s end will have very different consequences across market segments. Luxury residential and commercial property in central Barcelona and Madrid may see a temporary slowdown in foreign-led transactions, although demand for high-end real estate remains resilient.

Interestingly, premium commercial assets — like luxury retail spaces — are emerging as alternative safe-haven investments, particularly since rent cap regulations and visa reforms have complicated the residential segment.

“These assets offer certainty to investors who still want a foothold in Spain without dealing with volatile regulatory frameworks,” said Marcet.

Conclusion: A political gesture or a policy shift with lasting effects?

While the scrapping of the golden visa sends a strong political signal amid Spain’s broader housing debate, the data suggest its influence over the nation’s property market was relatively modest in scale but concentrated in impact.

For local advocates, it’s a necessary correction to deter speculative foreign investment. For investors and critics, it’s another sign that Spain’s property climate is becoming increasingly politicised — and unpredictable.

The real test will be whether its elimination opens genuine paths to improving housing affordability or simply deters capital that could have improved the very infrastructure it was accused of exploiting.