Spain’s Golden Visa Is Gone: What This Means for Property Buyers Seeking Residency

The Golden Visa Programme Has Ended

Spain’s Golden Visa programme officially closed to new applications on 9 April 2024. The scheme, which granted residency to non-EU buyers purchasing property worth €500,000 or more, had been under review since 2023 amid concerns about housing affordability and speculation in major cities.

If you were counting on buying your way to Spanish residency through property alone, that route no longer exists. But before you abandon your Costa del Sol plans entirely, there are still several paths to Spanish residency that work perfectly well for property buyers who meet the other requirements.

What Qualified Under the Golden Visa

The Golden Visa was straightforward: buy property worth at least €500,000, prove you had clean criminal records and sufficient funds, and you’d receive a renewable residency permit. Your spouse and children under 18 could be included on the same application.

The permit allowed you to live in Spain but didn’t require you to spend any minimum time there. You could renew it every two years initially, then every five years, as long as you maintained the property investment. After five years of continuous residency, you could apply for permanent residence.

Crucially, the Golden Visa was an investment residency programme. You weren’t required to demonstrate ties to Spain beyond the property purchase, nor prove you could support yourself through other means.

Alternative Residency Routes for Property Buyers

The end of the Golden Visa doesn’t mean property buyers can’t get Spanish residency. It just means the property purchase alone won’t qualify you. Here are the main alternatives that work well for people who happen to be buying property on the Costa del Sol.

Non-Lucrative Visa

This is probably the most relevant option for retirees or financially independent buyers. The Non-Lucrative Visa requires you to demonstrate passive income of at least €2,400 per month (€28,800 annually) plus an additional €600 per month for each dependent family member.

The income must be passive, pensions, rental income, dividends, or savings interest. You cannot work in Spain on this visa, which makes it perfect for retirees but less suitable for anyone planning to earn a living there.

You’ll also need comprehensive private health insurance and must spend at least 183 days per year in Spain to maintain the visa. After five years of continuous residence, you can apply for permanent residency.

Digital Nomad Visa

Spain’s Digital Nomad Visa launched in 2023 for remote workers and freelancers. You need to demonstrate monthly income of at least €2,400 (the same threshold as the Non-Lucrative Visa) and prove that at least 80% of your work is for clients or employers outside Spain.

Unlike the Non-Lucrative Visa, this allows you to work, but your clients must be primarily non-Spanish. You can include your spouse and children on the application, and after five years, you can apply for permanent residence.

The Digital Nomad Visa requires you to spend at least 183 days per year in Spain, so it works well if you’re planning to make the Costa del Sol your primary base.

Self-Employment Visa

If you’re planning to start a business in Spain, the self-employment visa might work. You’ll need to present a detailed business plan, demonstrate sufficient funds to support yourself and any dependents, and show relevant qualifications or experience.

The income requirement is the same €2,400 per month threshold, but you’ll need to prove this through your planned business activity rather than passive income. This route involves more paperwork and uncertainty, as your business plan needs approval from Spanish authorities.

UK-Specific Considerations

British buyers face additional complexity since Brexit. You’re now treated as third-country nationals for immigration purposes, which means you need a visa for stays longer than 90 days in any 180-day period.

However, UK citizens can still benefit from the double taxation treaty between the UK and Spain, which helps with tax planning if you’re receiving UK pensions or have UK rental income. The S1 form system also allows UK state pensioners to access Spanish healthcare, though you’ll still need private insurance initially for most visa applications.

If you’re a UK citizen who was already resident in Spain before Brexit and have your TIE card, none of these changes affect you. You maintain your existing rights under the Withdrawal Agreement.

Financial Requirements Across All Routes

Every residency route now requires you to demonstrate significantly more than the old €500,000 property purchase. The €2,400 monthly income threshold appears across multiple visa types, and you’ll typically need to show 12 months of bank statements proving this income is stable and ongoing.

You’ll also need comprehensive health insurance from a Spanish-licensed provider, which typically costs €100-300 per month depending on age and coverage level. The insurance must cover the full range of medical services with no co-payments or deductibles.

Criminal background checks are required from every country where you’ve lived for more than six months in the past five years. These need to be apostilled and translated into Spanish by a sworn translator.

The Property Purchase Still Makes Sense

Just because buying property no longer grants automatic residency doesn’t mean it’s not worthwhile. If you qualify for one of the alternative visa routes, owning property on the Costa del Sol still offers significant advantages.

You’ll have a permanent base that meets the 183-day annual residence requirement most visas impose. You won’t face the uncertainty of rental markets or the risk of landlords ending tenancies. And property ownership can help demonstrate your commitment to Spain when applying for permanent residence after five years.

The property market fundamentals haven’t changed either. The Costa del Sol remains popular with international buyers, and areas like Marbella, Estepona, and Sotogrande continue to see steady demand from both residents and investors.

Timing Your Application

If you’re serious about Spanish residency, start the visa application process before you complete on any property purchase. Most residency visas take 2-6 months to process, and you’ll want your legal status sorted before you’re committed to spending 183 days per year in Spain.

The Non-Lucrative Visa, in particular, can take longer if Spanish consulates request additional documentation about your income sources. Starting early gives you time to address any complications without affecting your property timeline.

Remember that visa processing times vary significantly between different Spanish consulates. London tends to be faster than some other locations, but you’ll need to apply through the consulate that covers your current country of residence.

How We Can Help

Our newsroom covers residency visa changes and requirements as they develop. When you’re ready to search for property to support your Spanish residency plans, browse our Costa del Sol listings from partner agents across the region.