Spain’s New Legislation to Abolish Golden Visas: What It Means for Foreign Investors in Mallorca
In a move that has sent ripples through the international property market, the Spanish government has announced a landmark decision to abolish its Golden Visa program, effective from April 3, 2025. This change marks the end of a highly attractive pathway for non-EU nationals seeking to secure residency in Spain through property investments. But what exactly is a Golden Visa, and how does this legislation impact foreign buyers, particularly those interested in the popular Balearic Island of Mallorca?
What Is a Golden Visa?
The Golden Visa program was introduced by Spain in 2013 as part of an effort to attract foreign investment in the country’s property market, especially following the financial crisis. The initiative allowed non-EU nationals to obtain a residence permit by making significant investments in Spanish real estate.
To qualify for a Golden Visa, the primary requirement was to purchase property worth at least €500,000. There were no restrictions on the type of property, meaning that investors could buy residential homes, commercial buildings, or even land. Once the investment was made, the individual (and their immediate family) could apply for a residence permit, which granted them the ability to live, work, and travel freely within Spain and the broader Schengen Area.
Why Is Spain Abolishing the Golden Visa Program?
The decision to phase out the Golden Visa program is part of a broader shift in Spain’s immigration and housing policies. The Spanish government has expressed concerns about the program’s potential to inflame housing inequality and fuel speculation in the property market. In recent years, the rising demand from foreign investors, particularly in major cities like Madrid, Barcelona, and popular tourist destinations such as Mallorca, has driven up property prices, making it more difficult for locals to afford homes.
Critics argue that the Golden Visa program, while attracting much-needed investment, disproportionately benefited wealthy foreigners, often leading to an imbalance in the housing market. Additionally, there were concerns that the program could be exploited for money laundering purposes, as it allowed wealthy individuals to bypass standard immigration checks and gain access to EU residency.
What Does the Abolition Mean for Foreign Buyers in Mallorca?
For foreign investors in Mallorca—one of Spain’s most coveted destinations for luxury property investment—the impending abolition of the Golden Visa program is a significant shift. Let’s break down what this means for buyers:
1. No New Golden Visas After April 2025: Anyone looking to apply for a Golden Visa after April 3, 2025, will no longer be eligible. This means that the opportunity to secure residency through property investment in Mallorca (or elsewhere in Spain) will no longer exist for non-EU nationals. Buyers who are considering making such an investment need to act before the deadline if they want to take advantage of this option.
2. Impact on Property Prices: The removal of the Golden Visa program could have a ripple effect on Mallorca’s real estate market. Some analysts suggest that the demand for high-end properties from foreign buyers may decline, potentially cooling the luxury property sector. However, given Mallorca’s continued popularity as a tourist and lifestyle destination, it’s unclear how much of an impact this will have in the long term.
3. Alternative Residency Options: While the Golden Visa is being abolished, there are still other ways for non-EU nationals to secure residency in Spain. These include the non-lucrative visa, which requires applicants to prove they have sufficient income to support themselves without working in Spain, or the start-up visa for those looking to establish a business. For investors, Spain’s investor visa and the EU Blue Card (for highly skilled workers) remain viable alternatives.
4. Changes for Existing Golden Visa Holders: Foreign nationals who already hold a Golden Visa will not be affected by the new legislation. Current holders will retain their residency rights as long as they comply with the renewal requirements. However, once their visas expire, they will no longer be able to renew them under the same terms.
5. Focus on Local Housing Policies: Spain’s government is increasingly focused on tackling the housing crisis and ensuring that its citizens have access to affordable homes. Abolishing the Golden Visa program could be seen as part of a wider effort to address concerns about real estate speculation and make housing more accessible for local populations.
Why Mallorca Remains Attractive for Foreign Investors
Despite the end of the Golden Visa program, Mallorca remains one of the most desirable destinations for international buyers, thanks to its stunning Mediterranean scenery, year-round mild climate, and excellent infrastructure. The island has long been a magnet for wealthy individuals looking for a second home or vacation property.
Moreover, Mallorca continues to offer other incentives for investors, such as competitive tax rates for property owners, a robust rental market catering to both tourists and long-term tenants, and a stable economy bolstered by tourism, agriculture, and real estate.
For those still keen on investing in Mallorca, it’s important to be aware that although the Golden Visa will no longer be available, real estate investments continue to offer the potential for substantial returns—both in terms of lifestyle benefits and potential financial gain.
Conclusion: A New Chapter for Spain’s Real Estate Market
As of April 2025, the end of Spain’s Golden Visa program will close an important chapter for foreign investors seeking residency through property ownership. While this will undoubtedly impact the landscape of high-end real estate, particularly in popular regions like Mallorca, Spain remains a prime destination for property investment.
For non-EU nationals who have yet to purchase property in Spain and were relying on the Golden Visa to secure residency, the window of opportunity is closing fast. However, as Spain evolves its immigration and housing policies, there will likely be new opportunities for investors to explore—both in Mallorca and across the country. As always, it’s advisable for potential buyers to consult with legal and real estate experts to ensure they’re making informed decisions before this significant change takes effect.
Alternatives to the Golden Visa for Obtaining Your Residence Permit in Mallorca
The potential end of the Golden Visa in Spain does not mean that other residence options are off the table. While the Golden Visa may be phased out in the future, there are still several alternative pathways for those interested in living and working in Spain, particularly in desirable locations like Mallorca. The island continues to attract international investors and those looking to enjoy a unique Mediterranean lifestyle.
Although the Golden Visa has been a popular way to obtain residence in Spain through real estate investment, there are other viable alternatives for foreigners who wish to establish legal residence. Some of the most prominent options include:
Entrepreneur Residence Permits: Spain offers residence permits for individuals who wish to start a business or invest in an entrepreneurial project within the country. This option is specifically designed to attract international entrepreneurs and investors who can contribute to Spain’s economy. With its growing business ecosystem, especially in tourism, tech, and real estate, Mallorca is an excellent location for such investments.
Digital Nomad Residence Permit: Spain has introduced a special residence permit for remote workers, allowing digital nomads to live and work in the country while maintaining their jobs abroad. Mallorca, known for its modern infrastructure, high quality of life, and connectivity with the rest of Europe, has become one of the preferred destinations for digital nomads. This residence option is ideal for those seeking a peaceful yet inspiring environment in which to work.
Highly Qualified Professional Permits: Spain also offers residence options for highly skilled professionals and workers in specialized fields, such as technology, research, and engineering. Mallorca, with its expanding number of tech companies and innovation hubs, is an attractive destination for these profiles, who can benefit from Spain’s favorable tax and labor conditions.
Reforms in Immigration Law
It is expected that future reforms to Spain’s immigration laws will continue to promote the attraction of talent and foreign capital, adapting to the changing realities of global mobility. With an increasing presence of international professionals and companies in Mallorca, the legal framework is likely to continue facilitating residence options for those looking to establish themselves on the island. This evolving legal landscape offers significant advantages for those interested in moving to Mallorca.
Why Choose Mallorca?
Mallorca is a paradise for those seeking a balance between breathtaking natural surroundings and an exceptional quality of life. With its mild climate year-round, rich cultural offerings, stunning landscapes, and excellent infrastructure, the island is an ideal destination for settling down. Moreover, Mallorca has seen significant growth in foreign investment, particularly in the real estate sector, making it a sought-after location for business and leisure alike.
The island’s real estate market remains robust, with consistent demand for luxury properties, seaside apartments, and villas with incredible views. Along with this, there are numerous residence options available for foreigners, making it easier to settle in Mallorca, whether as a long-term resident or as a second-home owner.
How to Purchase Property in Mallorca
Buying property in Mallorca remains one of the most common ways for foreign investors to obtain residency in Spain, especially through the Golden Visa. However, for those who don’t meet the requirements for the Golden Visa or prefer to explore other options, there are still alternative pathways to residence.
If you are considering buying property in Mallorca—whether it’s a luxury villa, apartment, or a property in a charming town—it’s essential to work with professionals who can guide you through the purchase process. Mallorca offers a wide variety of properties, from coastal estates to historic homes in picturesque villages, making it a desirable location for many different tastes and preferences.
Seize the Investment Opportunities in Mallorca
If you’re interested in purchasing property in Mallorca, whether for investment or as a place to live, it is crucial to have the right support to ensure a smooth, secure, and transparent transaction. Mallorca remains one of the best investment opportunities in Europe, and with the proper guidance, you can ensure that your investment is both profitable and safe.
The various residence options and ongoing legal reforms continue to make Mallorca an ideal destination for those seeking to relocate, invest, or establish themselves long-term in Spain. If you’re thinking about making Mallorca your home, now is the perfect time to take advantage of the opportunities the island offers, both in terms of quality of life and real estate investment.
More Spanish news about Visas in Spain : https://www.lamoncloa.gob.es/consejodeministros/referencias/Paginas/2024/20240409-referencia-rueda-de-prensa-ministros.aspx#visa
Find out the latest properties for sale in Mallorca.”:https://www.mallorca-property.co.uk/properties
