The Spanish Golden Visa programme, introduced in 2013, has long been a key incentive for foreign investors looking to establish residency in Spain while enjoying access to free movement across the Schengen Zone. However, with the programme officially set to end on April 3, 2025, the landscape for foreign buyers in Ibiza—and across Spain—will inevitably shift. Here’s what this change means for prospective investors and current property owners.
Why Is the Golden Visa Ending?
The Spanish government has decided to abolish the Golden Visa programme, citing concerns over its impact on housing affordability and market speculation. While it attracted significant investment, particularly in prime locations like Ibiza, there has been growing criticism that it contributed to rising property prices, making housing less accessible for locals.
How Will This Impact Foreign Buyers?
1. Loss of Residency by Investment
The end of the Golden Visa means non-EU nationals will no longer have the option to secure Spanish residency through property investment. For those considering Ibiza as a second home, alternative residency options, such as the non-lucrative visa, will require more stringent financial criteria and proof of income.
2. Increased Competition Before the Deadline
With the programme’s closure looming, there is likely to be a surge in demand for high-value properties, particularly in sought-after destinations like Ibiza. Buyers hoping to secure their residency through the Golden Visa must act quickly to complete their purchase and submit their application before April 3 this year.
3. Market Dynamics Post-Abolishment
Ibiza’s luxury property market is unlikely to see a major downturn, as the island remains highly desirable for its lifestyle, exclusivity, and investment potential. However, the absence of the Golden Visa may shift the buyer demographic, with more focus on EU-based or cash-ready international investors.
What Are the Alternatives?
Foreign buyers who miss the deadline still have options to live in Spain:
– The non-lucrative visa, which requires proof of sufficient financial means but does not permit work.
– The entrepreneur visa, for those looking to establish a business in Spain.
– Renting or buying property without residency, as there are no restrictions for non-residents owning property in Spain.
Act Now to Secure Your Opportunity
For those considering an investment in Ibiza, this is the last chance to take advantage of the Golden Visa programme. By acting before the April 2025 deadline, you can secure residency benefits while owning a slice of paradise on one of the world’s most iconic islands.
Contact Ibiza Hills Homes today to explore your options and make the most of this final window for the Golden Visa programme. Let us help you navigate this transition with expert guidance tailored to your needs.