The Spanish government has voted to end Spain’s golden visa. When the amended law comes into force on 3 April 2025, non-EU nationals can no longer obtain residency and freedom of movement in Spain simply by buying high-value property.
While this sounds like bad news for UK nationals who no longer have EU freedom of movement, other visa options are available if you intend to retire in Spain and live there most of the year. In fact, the non-lucrative visa approach is cheaper as you don’t need to spend a set amount on a property and can choose to buy or rent whichever home you want.
Abolishment of Spain’s golden visa confirmed
On 2 January 2025, Spain’s Official State Gazette (BOE) published Organic Law 1/2025, confirming that the elimination of the Golden Visa programme will come into effect on 3 April 2025.
The Council of Ministers had first agreed to eliminate the golden visa in April 2024. and the Congress of Deputies approved the legislative amendments to abolish it in November. Although the Senate then vetoed the proposal, on 19 December 2024, the Spanish Congress officially approved the repeal of the Golden Visa programme, with 177 votes in favour to 170 votes against.
Articles 63, 64, 65, 66 and 67 of Law 14/2013, which provided the legal framework for the golden visa, have been removed.
Applications for the golden visa will still be accepted until 2 April 2025, so you still have a couple of months to apply.
The golden visa was launched by Prime Minister Mariano Rajoy in 2013 in the wake of the banking and property crisis which hit Spain hard. However, the escalating housing crisis over recent years, driven by soaring property prices and restricted access for locals, has led to criticism of the programme. The government hopes that eliminating the golden visa will help
ease housing shortages and make homes affordable again for local residents. Spain has also been under pressure from the European Commission, which wants to clamp down on such residence schemes because of security concerns.
Existing golden visa holders and applicants
Since 2013, the golden visa has offered a flexible residence option for third-country nationals who can make a substantial capital investment in Spain. For some, the key attraction was being able to come and go as they pleased, with virtually no cap on how much time they could spend in or out of the country.
If you have already been granted a golden visa, you don’t need to worry. It will remain valid for the original term and can be renewed in accordance with the original provisions of the programme.
If you have already submitted an application or apply between now and the law being repealed in a couple of months, your application will continue to be processed under the regulations that were in place at the time of submission.
The most common way to qualify has been to purchase a property worth at least €500,000. Other pathways include buying shares in a company or making a deposit in a Spanish bank of a €1 million or more, or investing in a new business that offers employment opportunities or significant local benefits.
Spain’s Non-Lucrative Visa option for retirees
The non-lucrative visa is the residence approach most retired UK nationals have taken since Brexit.
As explained on Spain’s Ministry of Foreign Affairs website, this is a “visa to reside in Spain without carrying out any gainful (work or professional) activity, provided that the applicant has sufficient and guaranteed means to live on”.
A key requirement for a successful application, therefore, is to provide proof of sufficient financial means to cover the expenses of residing in Spain or confirming that you have a regular source of income. If your monthly pension income does not reach the minimum, having sufficient deposits in a Spanish bank account may cover you.
You’ll also need suitable medical health insurance from an insurer in Spain, medical check records, and clean criminal records.
Your initial visa will last for one year, at which point you can renew it for two years. You’ll need to provide similar documentation again, including proof of funds. After five years, you can apply for a permanent residency permit if you are eligible.
The non-lucrative visa does not provide the same level of flexibility as the golden visa in terms of how much time you can spend out of Spain each year. However, since a Spanish Supreme Court ruling in 2024, you no longer must maintain tax residence in Spain to retain your non-lucrative visa. The court ruling clarified that temporary residency cannot be automatically revoked for absences beyond six months without a valid legal basis.
However, although the regulation was struck from the law, this does not prevent the government from updating the ‘core’ law in future to include restrictions. Note, too, that the other requirements for renewing a non-lucrative visa, such as financial stability and health insurance, were unaffected and continue to be enforceable.
Making the most of Spain
If you plan to move to Spain, you will need to adjust your financial affairs to suit your new situation. You will benefit from planning ahead before you become tax resident, to understand all the tax implications and make the most of opportunities to save tax by restructuring your affairs before you change residency.
With offices in London and throughout Spain, advisers living locally in Spain and specialist tax experts, Blevins Franks is perfectly placed to guide you through the whole moving to Spain process, from residency, to tax and estate planning, to investments and pensions. We can help you grow and protect your wealth in the most tax-efficient way, for yourself and your heirs in future.
Contact Blevins Franks to arrange a consultation today.
