GOODBYE GOLDEN VISA, GOODBYE FILIPINO INVESTORS?

SPAIN IS PUTTING AN END TO ITS GOLDEN VISA PROGRAM WHICH HAS LONG ATTRACTED FOREIGN INVESTORS, OFFERING NON-EU NATIONALS, INCLUDING FILIPINOS, RESIDENCY THROUGH REAL ESTATE INVESTMENT. WHAT DOES THIS MEAN FOR FILIPINO INVESTORS?

Spain has long been a magnet for foreign investors, thanks in part to its Golden Visa program, a residency-byinvestment initiative that has offered non-European Union nationals a pathway to European residency by purchasing property worth at least EUR 500,000. Over the years, this program has attracted high-net-worth individuals from around the world, including a growing number of Filipinos drawn to Spain’s familiar culture, deep historical ties, and warm Mediterranean lifestyle.

But now, a major shift is on the horizon. In a landmark decision, the Spanish government has announced plans to phase out the Golden Visa program, citing concerns over housing affordability and the impact of speculative real estate investments. Prime Minister Pedro Sánchez put it bluntly: “We must ensure that housing serves its primary purpose—to provide a home, not to act as a tool for unchecked profit.”

With the program officially ending in April 2025, Filipino investors who have viewed the Golden Visa as a gateway to Europe are now facing a rapidly closing window of opportunity. Spain’s appeal to Filipinos has been more than just financial—it has been a bridge to a country that shares language similarities, cultural connections, and a rich colonial history. For many families and retirees, the Golden Visa wasn’t just about property investment; it was about securing a future in a place that felt like a second home.

As the phase-out approaches, investors will need to reassess their plans. Will Spain introduce alternative pathways to residency? And what does this mean for those who were counting on the Golden Visa to make their European dream a reality? One thing is certain—the landscape of foreign investment in Spain is about to change, and Filipinos with their eyes set on Spanish residency will need to act fast or look for new avenues.

THE UNIQUE PATH TO CITIZENSHIP FOR FILIPINOS

The end of Spain’s Golden Visa doesn’t mean the door is closed for Filipinos seeking residency or even citizenship. Those who move to Spain for work, study, or other legitimate reasons can still build a life there, and one major advantage remains. Unlike most nationalities that must wait ten years, Filipinos can apply for Spanish citizenship after just two years of legal residency, a unique fast-track option rooted in Spain’s shared history with the Philippines.

For many Filipino investors and families, this has been a key incentive, not just for property ownership, but for the long-term benefits of European citizenship, from seamless travel across the EU to access to Spain’s healthcare and education systems. While the Golden Visa may be fading out, Spain remains an inviting destination for those looking to put down roots.

PROPOSED TAX REFORMS

In addition to these changes, the Spanish government has proposed tax reforms that could potentially lead to taxes of up to 100% on properties purchased by non-EU residents. This significant measure is part of Spain’s strategy to encourage responsible investment and address concerns regarding the stability of local housing markets. Addressing the new tax proposals, Sánchez stated, “The West faces a decisive challenge: to ensure that our society does not become divided into two classes, the rich landlords and the poor tenants.” The uncertainty surrounding these reforms has led to a reevaluation of plans by potential investors, including those from the Philippines.

HOPE FOR FOREIGN INVESTORS

Despite these sweeping changes, Spain remains an attractive market for foreign investors who are willing to adapt to the new environment. The government is emphasizing opportunities in sustainable real estate and social housing projects. There are also potential incentives for those investing in the renovation of vacant properties or contributing to Spain’s goal of providing more affordable housing options.

For those still interested in purchasing property, Spain offers numerous regions with diverse investment opportunities. Coastal areas such as Andalusia and Valencia continue to appeal to retirees and expatriates, while cities like Madrid and Barcelona attract professionals and entrepreneurs seeking urban investments.

Additionally, Spain’s thriving tourism industry and growing emphasis on sustainable development present lucrative opportunities for investors in hospitality, eco-tourism, and renewable energy projects.

A WINDOW OF OPPORTUNITY

For Filipino investors who have already established roots in Spain through the Golden Visa program or those considering Spain as a second home, these changes present an opportunity to consider how investments align with the country’s new vision. Spain’s shared cultural history with the Philippines and the deep connection between the two nations mean that opportunities for Filipinos in Spain remain significant. While the reforms may seem challenging at first, they also encourage foreign investors to engage with Spain’s evolving priorities. By exploring new avenues such as sustainable housing or business ventures that contribute to local communities, Filipino investors can continue to strengthen their ties with Spain and contribute to its promising future.

Spain continues to be a country with a rich culture, diversity, and opportunity. For those interested in aligning their investments with the nation’s evolving priorities, there may be opportunities to secure a stake in Spain’s promising future. As the country considers adjustments to its housing and real estate policies, it invites Filipino investors to consider joining in building a future where profitability and purpose can coexist, with the aim of ensuring continued prosperity for both nations.