How Europe's crackdown on golden visas is reshaping residency by investment

Over the past decade, golden visa programmes have been a popular tool for countries looking to attract foreign capital. For international buyers, they offered a structured route to residency through real estate – a mutually beneficial exchange that, until recently, has shaped demand across key Southern European markets.

But with growing political scrutiny and housing affordability concerns, some of the most established golden visa destinations are tightening – or withdrawing – their programmes, and property professionals must reassess how they support clients in navigating their international relocation and investment strategies.

Why golden visas are losing their shine

The original appeal of golden visas was simple: invest in property, secure residency, and gain access to Europe's Schengen Zone. But their success has led to unintended consequences. In Lisbon, Barcelona, and Athens, foreign investment has driven property values to unsustainable levels, pricing out locals and fuelling political discontent.

National governments now face the challenge of balancing foreign capital inflows with rising domestic housing pressures. Spain's Prime Minister, Pedro Sánchez, has said scrapping the golden visas will help ensure housing is ‘a right instead of a speculative business’, echoing broader EU concerns around money laundering risks and regulatory gaps.

Portugal pivots away from property-linked residency

Portugal's golden visa programme, introduced in 2012, drew thousands of investors and channelled billions into urban redevelopment and tourism infrastructure. But with the introduction of the 'Mais Habitação' law on 7 October 2023, the government began phasing out real estate as an eligible investment category.

Today, applicants can no longer gain residency by purchasing residential property in most urban or coastal areas. Instead, the emphasis has shifted to capital contributions through investment funds or cultural sponsorships.

Furthermore, Portugal is seeking to tighten its immigration and naturalisation laws, extending the residency requirement for citizenship from five to ten years, or seven years for individuals from Portuguese-speaking countries, such as Brazil.

The policy shift has left a noticeable mark on the market. In Lisbon and Porto, once popular targets for golden visa buyers, interest has cooled, and price growth has slowed. Developers who previously tailored projects to international investors are now redirecting their focus toward domestic buyers, where demographic trends are also suppressing demand.

On the other hand, demand for commercial and tourism-linked real estate, especially in the Algarve, is rising as investors seek alternative routes to residency.

Spain shuts the door

If Portugal's changes were gradual, Spain's decision was abrupt. After receiving parliamentary approval in November 2024, Spain officially abolished its golden visa programme less than six months later on 3 April 2025.

Critics of the programme have long argued that while golden visa holders only accounted for a small fraction of total real estate transactions (totalling around 5,000 since Spain introduced the programme in 2013) their impact was concentrated in high-demand areas like Madrid, Barcelona, and the Costa del Sol – regions already struggling with affordability.

Given that an estimated 94% of Spain's golden visas were tied to property, the end of the programme is expected to impact foreign investment flows, particularly in the luxury and commercial segments. Early indicators suggest a decline in international enquiries, though it may take time for full market effects to materialise.

The question now is whether this move will actually help improve long-term affordability or if it's more of a symbolic measure while policymakers focus on addressing housing shortages through streamlining eviction procedures, regulating short-stay rentals, and increasing construction activity.

Greece raises the bar

Among Europe's major golden visa destinations, Greece is the last one standing – but even here, the rules are tightening.

In an effort to curb speculation in high-demand markets such as Athens, Mykonos, and Santorini, the government raised the minimum investment threshold to €800,000 in August 2024, and to €400,000 in less crowded regions. However, some property conversions and heritage restorations still qualify for the old threshold of €250,000.

The changes are creating a multi-tiered system that is redistributing demand, concentrating foreign investment flows towards luxury properties in markets like Athens and Mykonos, while increasing competition for assets in lower-threshold areas.

For now, demand remains strong. Greece's programme still offers Schengen access, and with Portugal and Spain out of the picture, investor appetite is rising, with early data suggesting total applicants will surpass 10,000 in 2025.

However, pressure is mounting, and many wonder how long Greece can resist the same political and economic forces that have reshaped its neighbours' policies.

Where opportunity remains

Even as some countries restrict access, others continue to offer viable routes for those seeking residency through real estate investment.

Italy doesn't offer a conventional property-linked visa, but its elective residency scheme remains attractive to financially self-sufficient individuals, many of whom still choose to buy homes as part of their relocation.

Cyprus maintains a golden visa scheme with a minimum investment of €300,000 in property, although it has introduced more stringent vetting processes. Turkey remains one of the more accessible options, offering citizenship for real estate investments starting at $400,000.

Further afield, the UAE and Bahrain are actively promoting investor visas and are gaining traction among those seeking tax advantages and business opportunities. And in the Caribbean, nations like St Kitts and Nevis and Dominica continue to offer citizenship-by-investment programmes.

Strategic implications for property professionals

The straightforward property-to-residency route is narrowing, and these changes demand a shift in strategy from those in the property sector. In markets like Portugal and Spain, where foreign investment is dwindling, the focus must shift to domestic buyers, expat communities, and alternative visa options, such as Portugal's D7 passive income visa.

Navigating this new landscape starts with proactive policy tracking. New restrictions are emerging not just at national but also regional and municipal levels. Your team will need to be equipped to assess whether a single property investment is sufficient – or whether combining fund investments, business interests, or cultural contributions is now necessary.

Educating your clients is also critical. Many remain unaware of recent reforms or rely on outdated information. Clear, candid conversations about timelines, risks, and options will build trust and support better decision-making.

The changes are also spurring the need for cross-disciplinary partnerships. Immigration specialists, tax advisors, and fund managers are becoming important partners in structuring compliant investment strategies and visa applications.

What comes next

Policy change is rarely linear; expect further filtering. Portugal may extend fund eligibility to social housing projects, Spain is already tightening regulations in the tourism market, and Greece may raise regional thresholds again.

Whether you're an investor, property professional, or homebuyer, navigating these changes requires the right insights and financial solutions. At Redpin, we offer expert guidance and a seamless Payments platform to help you manage cross-border transactions with confidence. Speak to a Redpin expert today to see how we can support your property journey.