As of Thursday, April 3, Spain officially ends the golden visa scheme for non-EU nationals that allowed residency in exchange for real estate investments over €500,000, following the enactment of the new Organic Law for the Efficiency of Public Justice.

Introduced by the right wing People’s Party government in 2013, the scheme recorded more than 14,500 golden visa cases by 2023, with a significant increase in recent years driven by Brexit and the war in Ukraine.

About a year ago, socialist Spanish Prime Minister Pedro Sánchez announced plans to terminate the program, arguing that it contributes to housing access issues in certain cities. He emphasized that housing is a right, not merely a “speculative business.”

The golden visa allowed non-EU nationals to obtain residency by investing in: Real estate worth over €500,000, Bank deposits, Government bonds, Shares and investment funds, and Business projects of general interest.

Barcelona, Madrid, Málaga, Alicante, the Balearic Islands, and Valencia accounted for 90% of all golden visas issued in recent years. The majority benefited Chinese and Russian nationals.

Alongside ending the golden visa, and following similar moves by other European countries, the Spanish government is considering additional measures to limit property purchases by non-EU nationals. These may include a tax deterrent, such as imposing VAT or a transfer tax on 100% of the property value.

The real estate sector believes the impact will be limited, arguing that the locations and types of properties purchased through golden visas do not generally overlap with those sought by average Spanish citizens. However, industry voices have expressed concern that the move sends a negative message to international investors.

Starting today, new tourist apartments intended for short-term rental will require explicit approval from the building’s owners’ association, with a three-fifths majority. Without such approval, any owner can request the immediate suspension of the rental activity.

The same majority is required to introduce special fees or increase shared building expenses related to such activities, provided these do not exceed a 20% increase.

These provisions come into effect with the Organic Law mentioned above, which also amends the Horizontal Property Law, aiming to empower owners' assemblies amid the growing number of tourist rentals and their impact on housing availability in Spain.

However, the new regulation will not affect existing tourist apartments registered before the law's enactment, which may continue to operate.

Additionally, the government is introducing a central registry to combat fraud in the commercial exploitation of short-term rentals, including tourist leases. This registry will come into force on July 1.