Spain’s Golden Visa ban delayed after veto from senate

Spain’s Golden Visa in limbo after senate veto and what it means for Investors

Spain’s once-secure plan to abolish its controversial Golden Visa programme has hit an unexpected roadblock. Just last month, the country’s Congress approved a bill aiming to end the residency-for-investment scheme by January 2025. However, the Spanish Senate vetoed the proposal in December, delaying or potentially derailing the process altogether.

What’s the Golden Visa?

Introduced in 2013, the Golden Visa programme grants residency to non-EU nationals investing at least €500,000 in property, €2 million in Spanish bonds, or €1 million in shares. While the scheme has drawn over 14,500 property investments to date, critics argue it exacerbates Spain’s housing crisis by inflating property prices and reducing supply for locals.

Why was it targeted for abolition?

Prime Minister Pedro Sánchez’s government tied the repeal to the broader Justice Efficiency Law, part of its efforts to address housing affordability and economic disparities. Critics within Spain and the EU have also raised concerns about the programme’s potential role in enabling questionable financial activities like money laundering and tax evasion.

The senate’s rejection

In a move attributed more to political rivalry than specific objections, the centre-right Partido Popular (PP)-controlled Senate rejected the bill. While PP sources cited “poor legislative drafting” as the reason, the veto underscores the ongoing tensions between Sánchez’s PSOE coalition and opposition parties.

What happens next?

The bill now returns to Congress, where Sánchez’s coalition holds a slim majority. If Congress overrides the Senate veto, the Golden Visa ban could still become law—potentially as early as April 2025.

What about current applicants?

The programme remains open for now, and applications have surged since abolition plans were announced in April. From January to October 2024, 780 visas were approved, with applicants investing an average of €657,204. Under current rules, applications submitted before the law’s enforcement will be processed under existing regulations.

What does this mean for investors?

For those considering Spain’s Golden Visa, time is of the essence. With no definitive timeline for the ban’s implementation, applicants can still benefit from Spain’s lucrative residency programme—for now.

Stay tuned as Spain’s Congress debates the next steps in the Golden Visa saga, and explore other European options for investment-based residency in countries like Italy, Malta, and Greece.

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