Surge in luxury property purchases in Spain ahead of golden visa cancellation

Friday 25 April 2025 - 15:10

By: Dakir Madiha

Surge in luxury property purchases in Spain ahead of golden visa cancellation

The landscape of Spain's real estate market has undergone a significant transformation as non-EU foreigners rushed to acquire high-value properties in the wake of the government's decision to abolish the golden visa scheme. Recent data reveals a remarkable increase in home purchases, particularly in the luxury sector, as buyers sought to secure residency before the program's termination on April 3, 2025.

According to figures from the Association of Registrars, foreign property transactions in Spain rose to nearly 93,000 in 2024, marking a 6.4 percent increase from the previous year. Notably, transactions exceeding €500,000— the threshold for the golden visa— surged by 20 percent, highlighting a last-minute rush among potential buyers.

As reported by the Spanish daily El País, the elimination of the golden visa has played a crucial role in stimulating high-value purchases. Industry experts suggest that while the cancellation has driven demand, the general uptrend in property prices has also contributed to this phenomenon.

From April to December 2024, only 573 golden visas were issued to non-EU nationals following Prime Minister Pedro Sánchez's announcement of the scheme's cancellation. With the golden visa no longer an option, high-income non-EU individuals are now considering alternatives such as the non-lucrative visa or the digital nomad visa.

François Carriere, president of Coldwell Banker Spain y Andorra, noted a slight uptick in interest from international buyers for properties priced at €500,000 or more. However, he cautioned that these transactions accounted for a mere 5 percent of total purchases by international clients.

The decision to cancel the golden visa took the Spanish government nearly a year to finalize, a delay that appears to have prompted many foreign buyers to expedite their purchases. Rubén González, founding partner of Mavericks Inmobiliaria, cited instances of clients from the United States and Costa Rica who hurried to secure properties as the deadline approached.

Preferred destinations for foreign buyers include the scenic coasts and islands of Andalusia, Valencia, and Catalonia, which attract a significant number of British, German, and northern European nationals. Meanwhile, American buyers gravitate towards major urban centers.

Data indicates that transactions valued at €500,000 or more reached unprecedented levels as the golden visa scheme was phased out. A striking 10.76 percent of all foreign home purchases fell within this price bracket, representing the highest recorded percentage. Notably, over half of these transactions—52.57 percent—were conducted by non-EU nationals, who now face more stringent residency requirements.

In total, Spain had issued 33,237 golden visas, including those granted to family members, with 95 percent awarded for property purchases rather than alternative investment options. The majority of golden visa recipients were concentrated in major cities like Barcelona, Madrid, Málaga, and Valencia, with a significant presence of Asian buyers, particularly from China, alongside citizens from Russia, Ukraine, and the United Kingdom.