Spain's Golden Visa for Property Investors: Complete Guide 2026

For years, Spain’s Golden Visa programme was one of the most attractive residency-by-investment routes in Europe, offering non-EU nationals a path to Spanish residency through a €500,000 property purchase. In April 2025, Spain officially suspended new Golden Visa applications based on real estate investment. This guide explains what has changed, what alternatives remain, and what the situation means for British and international buyers considering Mallorca.

What Was the Golden Visa?

Spain introduced the Golden Visa (Visado de Oro) in September 2013 under Law 14/2013, the Entrepreneurs’ Act. The programme was designed to attract foreign investment by offering residency permits to non-EU nationals who invested significant capital in Spain. The most popular route was real estate: purchase a property (or properties) with a combined value of at least €500,000, and you qualified for a renewable residency permit.

The programme was enormously successful. Between 2013 and 2024, Spain granted over 14,500 Golden Visas, with the majority going to Chinese, Russian, British, and Middle Eastern applicants. The Balearic Islands — Mallorca in particular — were among the top destinations, alongside Madrid, Barcelona, Marbella, and the Costa del Sol.

What Did the Golden Visa Offer?

The benefits of the Golden Visa were substantial, which explains its popularity:

• Residency in Spain: A renewable residency permit, initially valid for two years, then renewable for five-year periods. You did not need to live in Spain full-time — there was no minimum stay requirement to maintain the visa, though you had to visit at least once during each permit period.
• Schengen area access: As a Spanish resident, you could travel freely across all 27 Schengen countries without additional visas. For British nationals post-Brexit, this was a significant benefit, eliminating the 90/180-day rule that restricts non-resident visitors.
• Family inclusion: Your spouse, dependent children (under 18, or under 26 if in full-time education), and dependent parents could be included on the same application.
• Work rights: Golden Visa holders could live and work in Spain, or simply reside without working.
• Path to permanent residency: After five years of continuous residence, you could apply for permanent residency (residencia de larga duración).
• Path to citizenship: After ten years of legal residency (or two years for nationals of former Spanish colonies), you could apply for Spanish citizenship, which includes an EU passport.
• No minimum stay: Unlike most residency permits, the Golden Visa did not require you to spend a minimum number of days in Spain each year. You simply had to enter Spain at least once during each permit period.

The Investment Requirements

Although real estate was the most popular route, the Golden Visa offered several investment pathways:

Investment Type	Minimum Amount
Real estate	€500,000 (net of any mortgages)
Spanish government bonds	€2,000,000
Shares in Spanish companies or investment funds	€1,000,000
Bank deposit in a Spanish financial institution	€1,000,000
Business project of “general interest”	No fixed minimum (assessed case by case)

Critical detail for the real estate route: The €500,000 threshold applied to the investment that was free of mortgages and encumbrances. You could buy a property worth €800,000 with a €300,000 mortgage and still qualify, because the unencumbered portion (€500,000) met the threshold. However, a €500,000 property with a €100,000 mortgage would not qualify, as only €400,000 was free of debt.

You could also combine multiple properties. Two apartments at €250,000 each, both purchased without a mortgage, would satisfy the requirement.

The Application Process (How It Worked)

For those who obtained Golden Visas before the suspension, the process typically followed these steps:

1. Obtain an NIE: A Número de Identificación de Extranjero (foreigner identification number) was required before purchasing property. This could be applied for at a Spanish consulate or police station in Spain. For a detailed guide, see our NIE number guide.
2. Purchase the property: Complete the purchase, ensuring the investment met the €500,000 unencumbered threshold. All standard buying costs applied in addition to the investment amount.
3. Apply for the visa: Submit the application at a Spanish consulate in your country of residence, or apply for the residency permit directly in Spain if you entered on a tourist visa. Required documents included proof of property ownership, proof of investment amount, clean criminal record, private health insurance, and proof of sufficient financial means.
4. Receive the visa/permit: Initial processing took 10–20 working days for the visa, or approximately 20 working days for the residency permit. The initial permit was valid for two years.
5. Renew: After two years, renew for a five-year period, provided you still held the qualifying investment.

The entire process, from starting the property search to receiving the residency card, typically took 3–6 months.

What Changed in April 2025?

In April 2025, the Spanish government enacted legislation to suspend the real estate route to the Golden Visa. The key points are:

• No new real estate-based Golden Visa applications are being accepted as of April 2025.
• Existing Golden Visa holders are not affected. If you already hold a Golden Visa obtained through property investment, your residency permit remains valid and can be renewed as normal, provided you continue to hold the qualifying investment.
• Non-real-estate investment routes may still be available. The government bonds, shares, bank deposit, and business project routes were not explicitly targeted by the same measure, though the regulatory landscape continues to evolve.
• The stated reason was the impact of foreign property investment on housing affordability, particularly in major cities (Madrid, Barcelona, Málaga) and tourist areas. The government argued that the programme was contributing to rising property prices in areas where local residents were already struggling to find affordable housing.

Important caveat: There has been ongoing political discussion about whether the suspension will be made permanent, modified, or eventually reversed. Some political parties and regional governments (including the Balearic Islands) have argued for the programme’s continuation with modifications, such as restricting qualifying properties to new builds or setting a higher investment threshold. The situation remains fluid, and prospective investors should take up-to-date legal advice.

Why British Buyers Were Particularly Interested

The Golden Visa was especially relevant for British nationals after Brexit. When the UK left the EU on 31 January 2020 (with the transition period ending on 31 December 2020), British citizens lost their automatic right to live, work, and move freely within the EU. The practical consequences for property owners in Mallorca were significant:

• The 90/180-day rule: British visitors are now limited to 90 days within any 180-day period across the entire Schengen area. This means you cannot spend more than roughly three months at your Mallorca property without a visa or residency permit.
• No automatic right to work: British nationals need a work permit to be employed in Spain.
• Healthcare access: The EHIC was replaced by the GHIC for British nationals, which provides more limited coverage. For a detailed guide to healthcare in Mallorca for British expats, see our dedicated article.
• Higher tax rates: Non-EU residents pay 24% tax on Spanish rental income (vs 19% for EU residents) and cannot deduct expenses.

The Golden Visa solved the 90-day problem elegantly: invest €500,000 in Mallorca property (which many British buyers were doing anyway) and gain residency, Schengen freedom, and the right to spend as much time as you wished at your property. Its loss has left a gap that alternative visa routes only partially fill.

Alternative Residency Routes for British and International Buyers

With the real estate Golden Visa suspended, buyers who want to spend more than 90 days at their Mallorca property need to consider alternative routes to Spanish residency:

Non-Lucrative Visa (Visado de Residencia No Lucrativa)

This is currently the most popular route for British retirees and financially independent individuals buying property in Mallorca.

• Requirements: Proof of sufficient financial means to support yourself without working in Spain (approximately €28,800/year for the main applicant in 2026, plus €7,200 per dependent). Private health insurance. Clean criminal record. No work permitted in Spain.
• Duration: Initial permit for one year, renewable for two-year periods.
• Minimum stay: You must spend at least 183 days per year in Spain, which also makes you a Spanish tax resident.
• Property: You do not need to buy property, but having a registered address in Spain is required.

Key difference from Golden Visa: You cannot work in Spain, and you must actually live in Spain for the majority of the year. This makes it unsuitable for those who want to split their time between Spain and the UK.

Digital Nomad Visa (Visado para Teletrabajadores)

Introduced in 2023, this visa allows remote workers to live in Spain while working for a non-Spanish employer or their own company registered outside Spain.

• Requirements: Proof of remote employment with a non-Spanish company (or freelance clients), at least one year of professional relationship with the employer. Minimum income of approximately €28,800/year. Private health insurance.
• Duration: Up to three years, renewable for five-year periods.
• Tax advantage: You may opt for the Beckham Law regime, paying a flat 24% on Spanish-source income only (rather than standard progressive rates up to 47%) for up to five years.

Best for: Remote workers under retirement age who want to base themselves in Mallorca while continuing to work for international clients or employers.

Entrepreneur Visa (Visado de Emprendedor)

Available to those planning to establish a business in Spain that is considered innovative or of economic interest. The requirements are more subjective, and the application includes a business plan assessment by a government body.

Other EU Residency Options

Some buyers consider obtaining residency in another EU country (Portugal, Malta, Greece, and Ireland still offer various programmes) and using that as a base for Schengen-wide freedom of movement, while owning property in Mallorca as non-residents. This is a legitimate strategy but adds complexity to your tax and legal position.

Tax Implications of Residency vs Non-Residency

Whether you become a Spanish tax resident has enormous financial implications. Here is a simplified comparison:

Factor	Non-Resident (UK-based)	Spanish Tax Resident
Income tax on worldwide income	Not taxed in Spain (taxed in UK)	Taxed in Spain at progressive rates (19–47%)
Rental income from Mallorca property	24% flat rate, no expense deductions	Added to general income, but expenses deductible
Capital gains on property sale	19% flat rate, 3% retention at sale	19–28% progressive rate
Wealth tax	Only on Spanish assets above €700,000	On worldwide assets above €700,000
Inheritance tax	Only on Spanish assets	On worldwide assets

The 183-day rule: If you spend 183 or more days per year in Spain, you are automatically considered a Spanish tax resident, regardless of your visa status. This triggers worldwide taxation in Spain. The UK–Spain double taxation treaty prevents double taxation, but you must actively claim relief, and the net tax position depends on your individual circumstances. Always take professional advice from a cross-border tax specialist before making residency decisions.

For a comprehensive overview of property taxes in Mallorca, see our detailed guide.

Practical Considerations for Mallorca Property Investment

Whether or not you pursue residency, buying property in Mallorca remains an attractive proposition for international investors. A few practical points to consider:

The €500,000 Level Still Makes Sense

Even without the Golden Visa incentive, the €500,000–€700,000 price bracket hits a sweet spot in the Mallorca market. It gives you access to quality properties in desirable areas: a modern apartment in Palma’s Old Town, a townhouse in Pollença, or a villa with a pool in Calvià. Properties at this level tend to hold their value well and attract strong rental demand. For guidance on the best areas for investment, see our area guide.

Mortgage Availability for Non-Residents

Non-resident buyers (including British nationals) can typically borrow 60–70% of the purchase price from Spanish banks. Interest rates in 2026 are in the 3–4.5% range for non-residents, depending on the bank and your financial profile. For a detailed breakdown, see our mortgage guide for foreign buyers, or request a free mortgage comparison from our partner broker.

Currency Planning

If you are buying from the UK, the GBP/EUR exchange rate will significantly affect your total cost. At GBP/EUR 1.18, a €500,000 property costs £423,729. At GBP/EUR 1.12, the same property costs £446,429 — a difference of over £22,000. Use a specialist currency broker rather than your high street bank, and consider a forward contract to lock in the rate once you have agreed a purchase price.

The 90-Day Alternative

Many British property owners in Mallorca have adapted to life within the 90/180-day limit rather than pursuing formal residency. They spend spring and autumn in Mallorca (avoiding the scorching summer and the quiet winter), rent the property out during peak season, and use a local property management company to handle the day-to-day. This approach works particularly well if you do not want to become a Spanish tax resident.

Could the Golden Visa Return?

There is genuine uncertainty about the future of Spain’s Golden Visa programme. Several factors could lead to a reversal or modification:

• Political pressure from tourism-dependent regions: The Balearic Islands, Canary Islands, and Costa del Sol economies are heavily reliant on foreign property investment. Local governments have lobbied for the programme’s continuation with safeguards.
• Competition from other EU countries: Portugal, Greece, Malta, and others continue to offer residency-by-investment programmes, and Spain risks losing high-value investors to these competitors.
• Potential modifications: A revised programme might set a higher threshold (e.g., €750,000 or €1,000,000), restrict qualifying properties to new builds (to stimulate construction rather than inflate existing home prices), or exclude certain overheated markets (Madrid, Barcelona) while allowing it in other regions.

For now, prospective investors should plan on the basis that the real estate Golden Visa is not available, while remaining aware that the situation may change. Subscribe to updates from a Spanish immigration lawyer to stay informed.

Key Takeaways

• Spain’s real estate Golden Visa programme is currently suspended for new applications as of April 2025.
• Existing holders are unaffected and can renew their permits normally.
• Alternative residency routes exist (non-lucrative visa, digital nomad visa, entrepreneur visa) but come with different requirements and limitations.
• British buyers face the 90/180-day Schengen rule without residency, but many adapt their lifestyle around this constraint.
• Property investment in Mallorca remains attractive on its own merits — strong capital growth, rental demand, and quality of life — regardless of the Golden Visa status.
• The programme may be revised or reinstated in future. Monitor developments through qualified legal advisers.