Brits Have Until April 2025 To Apply For Spanish Golden Visa Program As Country Cracks Down On Housing Crisis

Non-EU nationals, including Britons, have until 3 April 2025 to apply for Spain's Golden Visa Program. The programme, which has allowed non-EU nationals to gain residency through property investments, is set to be abolished as part of Spain's measures to address its housing crisis.

End of the Golden Visa Program

Spain's Golden Visa Program, introduced in 2013, grants residency to individuals who invest a minimum of €500,000 (£430,000) in property. Since its inception, the programme has issued 780 visas, with an average investment of €657,204 (£565,000) per applicant, according to government data.

In December 2024, Spain's Congress of Deputies voted to terminate the programme, with 177 votes in favour and 170 against. The decision was officially published in Spain's State Gazette on 3 January 2025, and the law will take effect three months later. Spanish Prime Minister Pedro Sánchez explained that the move aims to prioritise housing as a fundamental right for citizens and combat the adverse effects of mass tourism and foreign property ownership on local housing markets.

Housing Crisis and Foreign Ownership

The housing crisis in Spain has been exacerbated by foreign property investment. According to Eurostat, house prices in Spain rose by 8.3% in the third quarter of 2024. Non-Spanish buyers accounted for 15% of property transactions during this period, with British buyers comprising 8.5%, per the Spanish Land Registrars Association.

The influx of foreign buyers, who purchase an estimated 27,000 properties annually, has driven prices beyond the reach of many locals. Homeownership rates in Spain have dropped dramatically, from 76% to 61% in 2024. Rising costs have been compounded by a 62.1% increase in rental prices over the past decade and a 38% rise in food prices in the last three years.

Tourism's Role in the Crisis

Spain remains one of the world's most popular tourist destinations, second only to France. In the summer of 2024, the country welcomed 21.8 million international visitors, a 7.3% increase from the previous year, according to the National Statistics Institute. British tourists formed the largest group, with 4.17 million arrivals.

While tourism contributes significantly to Spain's economy, it has also led to the displacement of locals. Cities such as Barcelona and Madrid have seen residents priced out of their homes as properties are converted into short-term rentals. In Barcelona, locals now account for a minority of the city's population, and many report feeling like second-class citizens in their own neighbourhoods.

Additional Measures to Combat the Crisis

To address these challenges, Spain has implemented a series of regulations, including a ban on issuing new short-term rental licences in Madrid and the introduction of stricter rules in other major cities. Fines for severe violations of rental regulations now reach up to €100,000 (£86,000). Prime Minister Sánchez has also proposed a 100% tax on property purchases by non-EU citizens, a measure that still requires parliamentary approval.

The Future for British Investors

Spain's appeal as a destination for property investment remains strong, with its sunny climate, affordable living costs, and relative affordability compared to other European countries. However, the upcoming changes signal a shift in priorities, as the Spanish government seeks to balance the benefits of foreign investment with the rights of its citizens.

The termination of the Golden Visa Program marks a significant step in addressing Spain's housing crisis. With the deadline approaching, prospective British buyers have a limited window to secure residency through property investment. These reforms highlight the growing tension between economic development, tourism, and the need for sustainable housing policies.