An Updated Overview, the Cancellation of the Spanish Program, and Key Changes in Investment-Based Residency Routes
Several European countries have operated or still operate programs commonly known as “Golden Visas“. These programs allow nationals of countries outside the European Union to obtain residency status in return for a qualifying investment, such as purchasing real estate or investing in funds, companies, or government bonds. However, it is important to emphasize that there is no single uniform European route. Rather, these are different national frameworks, and their conditions, scope, and validity vary from country to country.
For many years, Spain operated a Golden Visa program under Law 14/2013. Under that program, non-EU nationals could, among other things, invest a minimum amount of €500,000 in real estate and obtain a residence permit. Alongside this route, there were also other investment routes, such as an investment of €2 million in government bonds or €1 million in shares, funds, or bank deposits in Spain. In April 2024, the government announced its intention to cancel the route. However, the legal cancellation was completed only later and entered into force on April 3, 2025.
Over the years, these programs have sparked public and political debate in various European countries. This was due, among other things, to claims that they contributed to the worsening housing crisis, rising prices in high-demand areas, and the entry of speculative capital into the real estate market. In addition, European Union institutions also warned of risks relating to money laundering, tax evasion, and impaired oversight of the sources of funds of foreign investors.
Golden Visas in Europe and the Housing Crisis
Critics of the programs argue that attracting international investors to purchase real estate in countries such as Spain, Greece, and Portugal contributed to rising housing prices, particularly in urban areas and tourism hotspots. They claim that this made it harder for local residents to purchase homes for residential use. According to this view, when the housing market is affected by demand from wealthy investors who do not require permanent housing in the country, local access to affordable housing is harmed.
By contrast, various economists and market professionals believe that the housing crisis should not be attributed solely to Golden Visa programs. In their view, in many cases the source of the problem is a continuing gap between supply and demand, planning restrictions, a shortage of new construction, and a general increase in housing prices. According to this approach, cancelling investment programs alone is not necessarily expected to lead to a significant decrease in prices unless accompanied by structural measures to increase the housing supply.
The Cancellation of Golden Visas and Stricter Conditions in Europe
In recent years, Europe has seen a clear trend of tighter regulation of residency-by-investment routes. The housing crisis, public criticism, and concerns regarding tax evasion, money laundering, and organized crime have led various countries to reconsider these programs and, in some cases, to reduce or cancel them. European Union institutions have also urged Member States to tighten supervision of these routes and, in certain cases, to discontinue them.
Golden Visas in Different European Countries
Greece, for example, still operates a Golden Visa route. However, in recent years it has tightened its conditions and increased the investment threshold in certain areas. Therefore, while the Greek program has not been cancelled, it now operates in a stricter format that requires an individual review of the type of investment, the location of the property, and the relevant amounts under each route.
Portugal also continues to operate a residency route for investors, but not in the old and familiar format of purchasing real estate in order to obtain status. As part of the changes made there, the classic real estate investment option under the program was cancelled. Foreign investors seeking to secure status in the country must now consider other alternatives, such as investing in local funds that meet the conditions prescribed by law.
In Spain, Prime Minister Pedro Sánchez justified the move by referring to the need to ensure that housing is a right, not a speculative asset. The announcement of the intention to cancel the Golden Visa was made in April 2024. However, only Organic Law 1/2025 completed the cancellation of the investor visa regime, and the cancellation entered into force on April 3, 2025. This means that new applications can no longer be submitted under Spain’s Golden Visa route.
In Italy, the Investor Visa for Italy program remains in effect and is intended for nationals of countries outside the European Union. It is an investment-based residency route for an initial period of two years and includes several alternatives, including an investment of €2 million in government bonds, €500,000 in an Italian company, €250,000 in an innovative start-up, or €1 million in a philanthropic initiative. Accordingly, Italy still offers an active route for investors, but one that is based on financial and business investments rather than necessarily on real estate.
Hungary currently operates a Guest Investor route, which was relaunched in 2024 and allows foreign investors to obtain residency status subject to the conditions prescribed by local law. Among other things, published routes include an investment of €250,000 in a qualifying real estate fund, alongside routes that grant residency for extended periods.
Cyprus also continues to offer a permanent residency route for investors, subject to various conditions, including maintaining the investment, proving income, and presenting appropriate insurance. This is one of the routes that remains relevant for foreign investors seeking to establish status in a European country. However, here too, the practical and regulatory conditions for obtaining and maintaining the status must be carefully reviewed.
Malta currently operates the Malta Permanent Residence Programme, which is intended for third-country nationals and is administered through the Residency Malta Agency. The program continues to serve as one of Europe’s prominent alternatives in the field of residency for investors, with an emphasis on meeting eligibility criteria, due diligence checks, and financial requirements set by the local authorities.
It is important to remember that a “Golden Visa” is not automatic citizenship, and it is not identical in all countries where such routes exist. In most cases, it is a route for obtaining residency only. The path to permanent residency or citizenship, if available, depends on additional conditions such as periods of stay, center of life, tax requirements, and maintaining the investment over time.
The dynamic changes in immigration, investment, and tax laws in European countries raise complex questions for foreign investors considering an investment-based residency route. Beyond the amount of the investment, each country also requires a review of the type of qualifying investment, the conditions for maintaining the status, the tax implications, the possibility of renewing the permit, and the distinction between residency and citizenship. Therefore, before making a decision, it is important to consult professionals who are familiar with the latest changes in local and international law, in order to assess the most suitable alternative for each investor’s circumstances.
Nimrod Yaron & Co. specializes in Israeli and international taxation. Our team is composed of professionals with years of experience at the Israel Tax Authority, as well as experience at leading firms and law offices, bringing together a legal and economic perspective. We advise private and public companies, Israeli and foreign companies, global venture capital funds, as well as clients seeking focused advice in clear and accessible language. In addition, we work with a professional network of accounting firms and law offices around the world, in order to provide comprehensive support in cross-border matters.
When considering Golden Visas, investment-based residency, regulatory changes in Europe, or tax implications arising from holding assets and conducting international activity, it is important to obtain accurate advice that combines tax law, immigration law, and the commercial aspects of the investment.
FAQ
Does a Golden Visa grant citizenship?
No. In most cases, a Golden Visa grants residency only. Citizenship may be possible only if additional conditions are met and after several years have passed.
Does Spain still grant Golden Visas?
No. Spain cancelled the option to submit new applications under this route, and the cancellation entered into force in April 2025.
Did Portugal cancel the entire Golden Visa route?
No. Portugal narrowed the route and cancelled the classic real estate component, but other investment alternatives still exist.
Does Greece still offer a Golden Visa?
Yes. Greece continues to operate the route, but under stricter conditions and with different investment amounts depending on the area and type of property.
Is it necessary to live in the country in order to maintain the status?
Not always. This depends on local law, the required duration of stay, the type of permit, and the conditions set by each country.
Why is it important to also review the tax aspects?
Because an investment made for residency purposes may create tax implications in Israel and abroad. Therefore, careful advance planning is required before taking action.
