From 3 April, these “golden visas” will no longer be an option for residency in Barcelona or the rest of Spain. This scheme was introduced in 2013, during the height of the financial crisis, to attract foreign investment to the country.

Act 14/2013 allowed foreign nationals to obtain a residence permit through investments in business projects, financial assets, or property worth more than €500,000. Of these three options, property acquisition has been the most popular, accounting for more than 90% of all golden visas granted.

A step towards improving the housing situation

Applications for golden visas increased significantly from 2022, particularly in cities such as Barcelona, Madrid, Málaga, and Valencia, where the housing market is currently stressed, making it more difficult for residents to access housing.

This situation coincided in 2022 with the European Commission’s call to abolish such legislation to prevent money laundering and reduce other security risks. Following this warning, countries such as Ireland, Cyprus, and Portugal scrapped the golden visa programme, as Spain is now set to do.

What happens to pending applications and visas already granted?

The commitment was formalised on 14 November with the approval of an amendment to the Framework Act on Judicial Efficiency in the lower chamber of Spanish parliament, repealing the articles regulating the granting of golden visas for all the categories of investor applicants. However, the change will not come into effect until 3 April 2025.

Applications submitted before this date will be processed under the regulations in force at the time of submission. Meanwhile, permits already issued will remain valid until they expire. Finally, renewal applications may be processed in accordance with the legal provisions in force when the initial authorisation was granted.

A path for entrepreneurs

Act 14/2013, commonly known as the “Entrepreneurs’ Act, initially identified five groups: investors, entrepreneurs, researchers, highly qualified professionals, and intra-company transferees. The “Start-ups Act” was passed in late 2022, adding a sixth group: digital nomads.

From 3 April, the approved amendment will remove the investor category from Act 14/2013, but the other categories will remain. This means that the legislation will continue to provide a fast and straightforward route to obtaining a residence permit for non-EU nationals with an entrepreneurial profile.

The aim of the legislation, in relation to this group, is to attract particularly innovative and/or economically desirable business projects. This innovation may be reflected in the business model, the products or services offered, the use of proprietary technology, or the application of patents, among other factors.

Another goal is to attract business projects considered scalable, whether due to market appeal, the stage of the company’s development, competition, or the characteristics of the team.