Spain Golden Visa Abolished in 2025: Your Best Alternatives to Invest and Get Residency in Madrid
Spain Golden Visa Abolished in 2025: Your Best Alternatives to Invest and Get Residency in Madrid
The Spain Golden Visa was abolished in 2025, closing the door on the famous route that granted residency in exchange for a €500,000 property purchase. For non-EU investors and many French buyers who hoped to combine a Madrid investment with a residence permit, this is a real shift. The good news is that the Madrid market remains as attractive as ever, and several legal paths still lead to an investor residency in Madrid. This guide explains what changed, which alternatives to the Golden Visa now work best, and how to structure a purchase that still makes financial sense.
Why the Spain Golden Visa Was Abolished
The Golden Visa program, created in 2013, allowed third-country nationals to obtain Spanish residency by investing €500,000 in real estate. It was popular in prime areas like Salamanca and Chamberi, where buyers crossed that threshold easily.
The Spanish government linked the scheme to housing affordability pressures in major cities and voted to end the property-based route. From 2025, buying an apartment no longer grants a residence permit on its own.
This matters most to investors who treated the visa as a bonus attached to a property purchase. The underlying logic of buying in Madrid, however, has not changed: solid yields, strong demand, and a stable legal framework still apply.
The Investment Case for Madrid Has Not Changed
Even without the visa, Madrid remains one of Europe's most compelling markets. Prime districts trade between €6,000 and €9,000 per square metre, while rising areas such as Tetuan and Arganzuela still offer entry points around €3,500 to €5,000 per square metre.
Gross rental yields typically sit between 4% and 6% depending on the neighborhood. Our neighborhood price and yield analysis breaks down where the numbers work best in 2026.
If your goal is purely capital growth and rental income, you do not need a residence permit at all. You can buy as a non-resident, obtain a NIE number, and let us handle the rest through our buy-to-let investment service.
Key points to keep in mind:
- You still need a NIE to sign at the notary.
- Non-residents pay IRNR (non-resident income tax) on rental income and a deemed rent if the property is for personal use.
- Buying costs add roughly 10-12% on top of the price (ITP, notary, registry, legal fees).
Alternative 1: The Non-Lucrative Visa
The non-lucrative visa is the closest replacement for buyers who want to live in Spain without working locally. It suits retirees, remote earners with passive income, and investors who can show stable financial means.
You must prove income of roughly €28,800 per year for the main applicant, plus around €7,200 per additional family member, along with private health insurance. Buying or renting a home in Madrid strengthens the application, even though property is no longer a direct route to residency.
This visa pairs naturally with a property purchase. Many of our clients buy in family-friendly Retiro or elegant Chamberi, then apply for the non-lucrative visa to settle. If you are considering this path, our retire in Spain guide and the moving to Madrid practical guide cover the day-to-day side.
Alternative 2: The Digital Nomad and Entrepreneur Visas
If you earn income from a foreign company or run your own business, two routes stand out.
The digital nomad visa targets remote workers and freelancers serving clients outside Spain. You need to show a minimum monthly income (around €2,650 for the main applicant) and a genuine professional activity. It is one of the most flexible alternatives to the Golden Visa in Madrid because it allows you to work while living here.
The entrepreneur visa is designed for those launching an innovative or scalable business project in Spain, validated by ENISA. It fits founders who want to build a company while residing in Madrid.
Both visas can be combined with a property purchase. You can review our full visa breakdown in the Spain visa guide.
Alternative 3: The Beckham Law Tax Advantage
The Beckham Law is not a visa, but it is a powerful tool once you obtain residency through the digital nomad or entrepreneur route. It lets qualifying newcomers pay a flat 24% income tax on Spanish-source income up to €600,000 for up to six years, instead of progressive rates that can exceed 45%.
For high earners relocating to Madrid, this regime can transform the math. It applies to employees and certain entrepreneurs who become tax residents and meet the conditions.
We explain the eligibility rules, application deadlines, and pitfalls in our dedicated Beckham Law Spain guide. Before committing, run your numbers through our tax comparator to compare Spain with your home country.
How to Structure a Smart Madrid Purchase Now
Without the visa shortcut, the priority becomes a clean, well-priced acquisition. The fundamentals are the same whether you buy to live or to let.
Start by getting your NIE and opening a Spanish bank account. Then budget realistically: use our purchase-cost simulator to estimate ITP, notary, and registry fees, and the mortgage simulator if you plan to finance part of the purchase. Non-residents can usually borrow up to 60-70% of the value, as detailed in our non-resident mortgage guide.
A few practical reminders for foreign buyers:
- Expect a 10% deposit at the private contract stage (contrato de arras).
- Resale homes carry ITP (around 6% in the Madrid region); new builds carry 10% VAT plus stamp duty.
- Annual ownership taxes include IBI and, for non-residents, IRNR.
Our buying service caps commission at 3% and represents you, not the seller. If you also need refurbishment, our renovation service manages works end to end.
What is the best alternative to the Golden Visa for non-EU investors?
Ready to turn the end of the Golden Visa into a smarter Madrid strategy? Contact our team for a free first call, and we will map the visa route and the investment that fit your goals.
