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22.01.2025

Property With a Foreign Accent: Why Europe’s Golden Visas Are on the Brink of Change

For years, Golden Visa programs have drawn investors to Europe with the promise of quick EU residency through real estate purchases and other capital injections. Yet as of early 2025, this convenient route is undergoing a dramatic transformation. Below, we examine why Spain—long a favorite—has set a firm end date, why Hungary has stalled on launching its investor scheme, and which alternative paths remain for those seeking residency by investment in the EU.


Spain Confirms Closure of Its Golden Visa Program


From 2013 onward, Spain’s Golden Visa offered a residency path via property in Spain valued at €500,000 or more. More than 13,000 main applicants (close to 35,000 including family) gained residency this way. However, in 2024, the Spanish government announced a shutdown:
    •    Submission Deadline: April 3, 2025 marks the final date for new applications.
    •    Property Purchase: Applicants must complete notarization and secure proof of ownership before applying, a process that can take up to three months.


Why End a Successful Program?


Rising real estate prices have fueled public discontent, and the Spanish government cites this factor among the primary reasons. Critics argue that a few thousand Golden Visa transactions have a minimal effect on nationwide property values. Still, mounting EU pressure—concerns over potential money laundering and sanctions evasion—also played a decisive role.
Interestingly, investors from sanctioned nations, including Russia, have continued participating in the Spanish program if they meet strict compliance checks. But with the deadline looming, Spain will soon cease to be an option for fast-track EU residency.


Hungary’s Delayed (or Doomed) Investor Program


When talk of Spain’s closure intensified, many looked to Hungary for a viable alternative. Official statements promised two new routes:
    1.    Investment in Real Estate Funds – Scheduled for July 1, 2024, but as of early 2025, no fund has received a license.
    2.    Direct Real Estate Investment – Set for January 1, 2025, at a €500,000 threshold, yet local media reports now claim it may never open.


Why So Many Delays?


Hungary previously offered residency by investment through bonds, but that program ended in 2017 amid controversy. Under pressure from the European Commission to tighten due diligence, the new scheme faces ongoing delays. Political factors within Hungary compound the uncertainty, leaving potential applicants without a clear timeline or framework.

Other EU Options for Residency


As Spain, Portugal, and Ireland scale back or close their Golden Visa programs, aspiring investors must seek different routes to EU residency.
Financial Independence and Digital Nomad Visas
Programs for Financially Independent Persons and Digital Nomad Visas exist in several EU countries. Applicants must demonstrate steady, external income and commit to spending at least six months per year in the host nation. These paths lack the flexibility of a Golden Visa but still open the door to European living.
Business and Startup Visas
Many EU states also provide business visas or startup visas. These demand evidence of genuine commercial activity or innovative projects. While such routes may require more hands-on involvement, they remain a feasible way to secure long-term residency.


Looking Beyond the EU: The US and Other Global Alternatives


If EU residency is increasingly constrained, there are global programs that continue to welcome investors:
    •    US EB-5: Grants a Green Card for an $800,000 (Targeted Employment Area) or $1.05 million investment. Processing times vary, but this path remains popular among non-backlogged nationalities.
    •    E-2 Visa: Available to citizens of treaty countries (e.g., Turkey, Grenada), offering renewable non-immigrant status in the US for eligible entrepreneurs, though not a direct route to a Green Card.
In the Caribbean, several nations continue offering “citizenship by investment,” though the European Commission has pushed these countries to tighten their checks. As a result, 2025 sees heightened due diligence for passport applicants.


Key Observations on the Changing Landscape


Europe’s Stricter Stance
Following the conflict in Ukraine, most EU nations adopted a more cautious approach toward investors from Russia and other “sanctioned” countries. Heightened scrutiny of an applicant’s background and source of funds now leads to more rigorous—and lengthier—vetting processes.
Outlook for 2025–2026
Calls to ban or severely limit “citizenship by investment” and “residency by investment” echo across Brussels. Some countries—such as Portugal, Ireland, and Spain—have already curtailed or shuttered programs. Others, including Greece and Malta, remain open but face ongoing pressure to comply with stricter EU guidelines.
Next Steps for Investors
    •    Minimal Stay Seekers: Traditional Golden Visa schemes allowing minimal in-country residence are vanishing rapidly; within a year or two, they may disappear altogether.
    •    Genuine Relocation: If you plan to truly settle in Europe, look into business visas, Digital Nomad Visas, or financially independent residency schemes. You’ll need to spend at least six months per year in the target country, but the investment thresholds tend to be lower, and your path to long-term residency more straightforward.


Final Thoughts


The era of simply depositing €500,000 into European real estate for near-unrestricted EU residency appears to be ending. Domestic politics—paired with growing scrutiny from Brussels—have put the brakes on many Golden Visa programs. For those still hoping to utilize Spain’s route, April 3, 2025 is the final cutoff.
Beyond that date, investors must adapt to a changing market: from digital nomad pathways to business-based routes or even a leap to US EB-5 programs. As regulations tighten, being well-informed and prepared for deeper due diligence is essential. If Europe remains your goal, seize any remaining opportunities quickly, and be ready to meet more stringent conditions in the years ahead.

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