On 2 January 2025, Organic Law 1/2025 came into force in Spain, introducing measures aimed at improving the efficiency of the Public Judicial Service.
One of the most important provisions of this law is the abolition of the programme known as the “Golden Visa”, which granted residence permits to foreign investors in exchange for a significant investment in the country.
This decision has sparked intense debate in both political and business circles.
In this article, we explain the most important aspects of this new legislation.
I.-WHAT IS THE GOLDEN VISA AND WHY HAS IT BEEN ABOLISHED?
The golden visa programme, implemented in Spain since 2013, offered residence permits to non-EU citizens who made significant investments in the country. The main requirements for obtaining this visa included
- A minimum investment of 500,000 euros in real estate.
- An investment in government bonds of at least 2 million euros.
- The creation of business projects considered to be of general interest, such as the creation of jobs.
With the entry into force of Organic Law 1/2025, this programme was abolished, marking a significant change in Spanish migration and economic policy.
According to the legislator, this measure responds to concerns about social justice, economic sustainability and the fight against money laundering.
II.-WHAT LAWS DOES ORGANIC LAW 1/2025 AMEND?
The abolition of the Golden Visa has necessitated substantial changes to several key regulations relating to immigration, investment and the right to reside in Spain. Among the laws affected, the following stand out:
1. Law 14/2013, of 27 September, on the promotion of entrepreneurs and their internationalisation.
This law originally introduced the Golden Visa, which allowed foreign investors to obtain a residence permit in Spain in exchange for significant investments. Organic Law 1/2025 repealed the provisions of Law 14/2013, which regulated
- Residence for investors in real estate (Art. 63.1.a).
- Residence for investors in government bonds (art. 63.1.b).
- The residence of investors in economic projects of general interest (art. 63.1.c).
With this repeal, the legal framework that allowed the issuance of this type of visa is abolished.
2. Aliens regulation
Royal Decree 557/2011, which regulates entry, stay and residence in Spain, has been amended to remove any reference to the Golden Visa.
This includes the provisions on the special regime for foreign investors and the automatic renewal of residence associated with this programme.
3. Law on Foreigners (Organic Law 4/2000)
Although indirectly, Organic Law 1/2025 also affects the Law on Foreigners, as it tightens the criteria for granting residence permits, bringing them into line with the principles of equity and sustainability.
III.- TRANSITION OF CURRENT APPLICATIONS AND CURRENT HOLDERS OF REAL ESTATE INVESTMENT VISAS
The law introduces two specific provisions to manage the transition of existing Golden Visa holders and pending applications:
1. Existing residence permits
- Golden Visas issued prior to the commencement of the Act will remain valid until their expiry date.
- Holders of these visas will be able to apply for renewal, but will have to meet additional criteria:
- Justify the maintenance of the initial investment.
- Comply with the tax and legal regulations in force in Spain.
Renewals will be subject to a more rigorous analysis to ensure that they comply with sustainability and anti-money laundering objectives.
2. New applications in the pipeline
- Applications submitted before 2 January 2025 will be assessed under the previous rules, provided they meet all requirements at the time of submission.
- If approved, they will be subject to the new conditions for renewals.
3. Adaptation to the new model
- Foreign investors who wish to maintain their residence in Spain will have to opt for other legal channels, such as permits related to business activity, employment or non-profit residence.
- Those who wish to convert their temporary residence into permanent residence will have to prove that they have fulfilled the conditions of permanence and economic contribution laid down in the General Immigration Regulations.
CONCLUSION
The abolition of the Golden Visa in Spain by Organic Law 1/2025 represents a profound change in the country’s migration and foreign investment policy.
The legislative changes and transitional provisions are designed to ensure an orderly transition and protect current holders, while meeting the objectives of equity, sustainability and transparency.
Although the programme has been criticised, it has also attracted significant investment to the country. In this new scenario, it will be important to monitor how the authorities encourage responsible investment that benefits the Spanish economy as a whole.
Are you a Golden Visa holder or interested in this reform? Contact us to discuss your specific case or to answer any questions you may have.
