On 3 April 2025, Spain definitively ended its Golden Visa programme for real estate investors. For international buyers considering Ibiza, here's what changed and what your options are now.
On 3 April 2025, Spain's Golden Visa programme for real estate investors came to a definitive end. The scheme — which had allowed non-EU nationals to obtain Spanish residency by purchasing property worth €500,000 or more — was abolished following a government decision that had been signalled since April 2024.
For international buyers considering Ibiza, this is a significant development. But it does not mean that buying property in Ibiza as a non-EU national is no longer viable — it means the residency pathway has changed, and buyers need to understand their options.
What the Golden Visa Was
Introduced in 2013, the Spanish Golden Visa allowed non-EU nationals to obtain a two-year residency permit (renewable for five-year periods) in exchange for a minimum real estate investment of €500,000. It was widely used by buyers from Russia, China, the United States, and the Middle East who wanted both a property in Spain and a legal basis for residing in the Schengen Area.
At its peak, the programme attracted hundreds of applications per year, with a significant proportion targeting the Balearic Islands, the Costa del Sol, and Madrid.
Why It Was Abolished
The Spanish government cited housing affordability concerns as the primary reason for ending the programme, arguing that it contributed to price inflation in already expensive markets. Critics of the decision note that the volume of Golden Visa transactions was too small to meaningfully affect national housing prices, and that the abolition primarily affects a segment of the market — luxury properties above €500,000 — that is not directly competing with affordable housing.
Regardless of the political debate, the practical reality for buyers is clear: the Golden Visa route is no longer available.
What Are the Alternatives?
Non-EU buyers who want to purchase property in Ibiza and also establish legal residency in Spain now have several alternative routes. The Non-Lucrative Visa allows individuals with sufficient passive income or savings to reside in Spain without working. The Digital Nomad Visa, introduced in 2023, allows remote workers and freelancers to live in Spain while working for foreign clients or employers. The Beckham Law (Régimen Especial de Trabajadores Desplazados) offers a favourable flat tax rate of 24% for qualifying individuals who relocate to Spain for work.
It is important to note that none of these residency routes require a property purchase — and conversely, purchasing property in Ibiza does not automatically grant any residency rights. The two decisions — buying property and obtaining residency — are now entirely separate, and each requires its own legal and tax planning.
Does This Change the Investment Case for Ibiza?
For buyers who were purchasing primarily for residency purposes, the abolition of the Golden Visa is a meaningful change. For buyers who are purchasing for lifestyle, long-term value, or rental income — which represents the majority of the international buyer pool in Ibiza — the investment case remains unchanged.
Ibiza's fundamentals have not shifted: limited land supply, protected landscapes, strong international demand, and a global brand that continues to attract high-net-worth buyers from across the world. The Golden Visa was one pathway into the market; it was never the market itself.
