Spain’s Golden Visa Ended: Residency Options for Mallorca Property Buyers

Updated December 2025

Spain officially terminated its Golden Visa programme on 3rd April 2025, ending 12 years of property-based residency access for non-EU nationals. The programme issued over 22,430 residencies before its closure, with Asian nationals (primarily Chinese, 37%) and non-EU Europeans (39%) comprising the majority of recipients. Mallorca’s luxury property market, particularly Southwest coastal zones and Palma, attracted significant Golden Visa investment between 2013-2025.

The programme’s closure doesn’t restrict foreign property purchases. British, American, and other non-EU buyers continue acquiring Mallorcan real estate without limitations. However, property ownership alone no longer provides automatic residency pathways, fundamentally reshaping how UHNWI investors approach the Balearic market. Alternative residency routes—Non-Lucrative Visas, Digital Nomad Visas, and European programmes in Greece, Malta, and Italy—now serve buyers seeking both property assets and residency benefits.

Contents

• What happened to Spain’s Golden Visa programme?
• Why did the Spanish government terminate the programme?
• Can existing Golden Visa holders renew their permits?
• What alternatives exist for luxury property buyers in Mallorca?
• How does the Non-Lucrative Visa work for property buyers?
• What’s the Digital Nomad Visa and who qualifies?
• Should I still buy property in Mallorca without a Golden Visa?
• How do Mallorca’s residency options compare to other European programmes?
• What’s the long-term outlook for foreign property buyers in the Balearics?
• Which professional advisors do I need for residency applications?

What happened to Spain’s Golden Visa programme?

Spain officially terminated its Golden Visa programme on 3rd April 2025, ending a 12-year initiative that allowed non-EU nationals to secure residency through property investment. The programme, which launched in 2013 during Spain’s post-financial crisis recovery, issued over 22,430 residencies before its closure, generating billions in foreign direct investment.

Applications submitted before the 3rd April deadline continue to be processed under existing regulations, and current visa holders retain full renewal rights. However, no new Golden Visa applications have been accepted since that date, marking a definitive end to what was once Europe’s most straightforward property-based residency programme.

The closure doesn’t affect foreign nationals’ ability to purchase property in Spain. British, American, and other non-EU buyers continue to acquire Mallorcan real estate without restrictions, but property ownership alone no longer automatically provides a pathway to Spanish residency. This represents a fundamental shift in how UHNWI investors approach the Balearic market, requiring new strategies for those seeking both property assets and residency benefits.

The Golden Visa’s Mallorca Legacy

Between 2013 and 2025, the Golden Visa programme significantly influenced Mallorca’s luxury property market. International buyers, particularly Asian nationals (primarily Chinese, 37%) and non-EU Europeans (39%), acquired high-value properties across Palma, Port d’Andratx, Deià, and Pollença specifically to meet the €500,000 minimum investment threshold. These purchases concentrated in waterfront estates, historic fincas, and gated developments where single transactions frequently exceeded €2-3 million.

The programme’s appeal lay in its simplicity: purchase property worth €500,000 or more (mortgage-free equity), obtain a one-year visa renewable for two-year periods, and face no minimum stay requirements beyond visiting Spain once annually. Family members—spouse, children under 18, and dependent parents—qualified under the same application, making it particularly attractive for UHNWI families seeking Mediterranean lifestyle flexibility.

Property transactions funded through Golden Visa applications typically clustered in specific Mallorcan micro-markets. Deià saw Chinese and Russian buyers acquire historic stone properties in the €2-5 million range. Port d’Andratx attracted American and Middle Eastern investors purchasing contemporary waterfront villas from €3-8 million. Palma’s Portixol and Santa Catalina neighbourhoods drew European buyers into renovated townhouses and penthouses meeting the €500,000 threshold with urban convenience.

Frequently Asked Questions: Golden Visa Termination

Did Spain ban foreign property purchases?
No. Foreign nationals retain unrestricted rights to purchase Spanish property. The Golden Visa termination only eliminated residency-through-property-investment pathways. British, American, and other non-EU buyers can still acquire Mallorcan properties without limitations, but ownership no longer automatically qualifies for Spanish residency permits.

Can I still apply for a Golden Visa in 2025?
No. Spain stopped accepting new Golden Visa applications on 3rd April 2025. Applications submitted before this deadline continue processing under original regulations, but no new submissions are accepted. Existing visa holders maintain full renewal rights indefinitely.

What happens if I bought property specifically for Golden Visa purposes?
If you completed your purchase and submitted your Golden Visa application before 3rd April 2025, your application proceeds normally. If you purchased property but didn’t submit your application before the deadline, you own the property but won’t receive Golden Visa residency benefits. The property remains a legitimate investment, but alternative residency pathways are required if Spanish residence is desired.

Why did the Spanish government terminate the programme?

Prime Minister Pedro Sánchez announced the Golden Visa’s termination in April 2024, citing Spain’s acute housing crisis and property affordability concerns. The government’s position held that investment-based residency programmes transformed housing from a fundamental right into a speculative commodity, particularly in high-demand urban centres and coastal zones where local residents faced escalating prices and reduced availability.

Spain’s housing shortage reached approximately 600,000 units by 2025, with foreign investment blamed for exacerbating supply constraints in Madrid, Barcelona, Valencia, and the Balearic Islands. The Golden Visa, requiring €500,000 in real estate investment, concentrated foreign capital in precisely those markets experiencing the most severe affordability pressure. While official data suggested Golden Visa applications represented less than 2% of total property transactions, the government argued that each €500,000+ purchase removed mid-range to luxury inventory from domestic buyers.

The decision aligned Spain with broader European policy shifts. Portugal ended its Golden Visa programme in 2024 following similar housing concerns. Ireland terminated its Immigrant Investor Programme in 2023. The UK scrapped its Tier 1 Investor Visa in 2022. The European Commission has consistently advocated for stricter oversight of residency-by-investment schemes, citing financial transparency concerns and potential links to money laundering—though no evidence suggested systemic abuse in Spain’s programme.

Did the Golden Visa Actually Inflate Mallorca Property Prices?

The programme’s impact on Mallorcan property values remains contested. Luxury real estate specialists note that approximately 200-300 Golden Visa applications annually originated from Balearic property purchases—a marginal figure in a market processing 15,000+ annual transactions. International buyers acquired 14.6% of Mallorcan properties in 2024, but most purchases occurred well below the €500,000 Golden Visa threshold, driven by lifestyle factors rather than residency requirements.

Price appreciation in Palma, Andratx, and Deià correlated more strongly with supply constraints, planning restrictions, and surging tourism demand than with Golden Visa activity specifically. Property values in Southwest Mallorca increased 45-60% between 2015-2024, but this growth began before Golden Visa applications peaked and continued in micro-markets where Golden Visa purchases remained rare. Areas like Artà and Campos, seeing minimal foreign investment, experienced comparable appreciation rates to Golden Visa hotspots.

However, the programme did concentrate foreign capital in specific premium segments. When Russian and Chinese buyers competed for limited waterfront inventory in Port d’Andratx or historic properties in Deià, transaction prices occasionally exceeded local market valuations by 15-20%. Estate agents confirm that Golden Visa applicants frequently overpaid for properties meeting the €500,000 threshold, accepting inflated pricing to secure residency rather than negotiating optimal value. This behaviour created localised distortions in micro-markets with fewer than 50 annual transactions, where each Golden Visa purchase measurably affected price benchmarks.

Can existing Golden Visa holders renew their permits?

Existing Golden Visa holders retain full renewal rights indefinitely, provided they maintain their original investment and meet standard residency conditions. Those who secured permits before 3rd April 2025 can renew for five-year periods without programme termination affecting their legal status. Current law protects acquired rights for participants who entered the programme under its original terms.

Renewal requirements mirror the initial application criteria:

Renewals are processed through the same channels as original applications—Spanish consulates abroad or immigration offices within Spain. Processing times run 30-60 days for straightforward renewals, though complex cases involving changed circumstances (divorced dependents, sold partial investments, criminal allegations) may require 90+ days. Spanish immigration lawyers recommend submitting renewals 60-90 days before expiration to prevent administrative gaps.

The protection for existing holders stems from Spanish legal principles preventing retroactive application of new regulations to acquired rights. Golden Visa recipients obtained legitimate permits under laws in effect at issuance. Spain’s constitutional framework and EU legal standards prevent government from unilaterally revoking legitimately issued permits without cause. Provided holders meet ongoing compliance requirements, renewals proceed indefinitely regardless of programme termination.

Pathway to Permanent Residency and Citizenship

Golden Visa holders can pursue permanent residency and eventual Spanish citizenship following standard timelines. After five years of continuous residency (maintaining the investment and meeting presence requirements), permit holders qualify for permanent residence authorization, which eliminates the need to maintain the original €500,000 investment. Properties can be sold once permanent residency is secured.

Spanish citizenship through naturalisation becomes available after 10 years of continuous legal residence for most nationalities. Latin American and Philippine nationals qualify after two years, while Sephardic Jews meeting specific criteria may apply immediately. Citizenship applications require demonstrating Spanish language competency (DELE A2 certificate), constitutional and socio-cultural knowledge (CCSE exam), and ongoing ties to Spain.

Golden Visa participants pursuing citizenship should note that Spain generally doesn’t permit dual nationality except with specific countries (mostly former Spanish colonies). British, American, and most other nationals must formally renounce prior citizenship to complete Spanish naturalisation. This requirement causes many Golden Visa holders to maintain permanent residence status indefinitely rather than pursuing full citizenship.

Frequently Asked Questions: Existing Golden Visa Holders

If I have a Golden Visa, can I still renew it indefinitely?
Yes. Existing Golden Visa holders can renew their permits for five-year periods indefinitely, provided they maintain their original €500,000 property investment, visit Spain annually, and meet standard compliance requirements. The programme’s termination doesn’t affect acquired rights for legitimate permit holders.

Can I sell my Golden Visa property after five years?
You must maintain the €500,000 investment until securing permanent residency (after five years of continuous legal residence). Once permanent residency is granted, the property can be sold without affecting your immigration status. Selling before permanent residency voids your Golden Visa and terminates your residency authorisation.

What happens if property values drop below €500,000?
Golden Visa regulations require maintaining investment value at €500,000 minimum. If property values decline significantly below this threshold, immigration authorities may question compliance during renewal applications. However, most interpretations focus on original purchase price rather than current market value, provided the property is maintained and not intentionally devalued.

What alternatives exist for luxury property buyers in Mallorca?

Spanish residency pathways remain available for luxury property buyers despite Golden Visa termination. The Non-Lucrative Visa serves financially independent individuals with passive income, while Digital Nomad Visas suit remote workers and international business owners. Neither requires minimum property investment, though property ownership strengthens applications by demonstrating accommodation stability and genuine commitment to Spanish residence.

Additionally, alternative European Golden Visa programmes in Greece, Malta, and Italy continue accepting applications with varying minimum investments and residency obligations. These options appeal to buyers prioritising EU residency access over specifically Spanish residence.

Available Spanish Residency Options

Each pathway demands distinct documentation, compliance requirements, and lifestyle implications. Property buyers should evaluate which visa type aligns with their actual circumstances rather than attempting to contort genuine situations into inappropriate visa categories solely to secure residency.

How does the Non-Lucrative Visa work for property buyers?

The Non-Lucrative Visa (NLV) suits financially independent individuals with sufficient passive income or assets to support Spanish residence without working. Retirees with pensions, dividend income from investments, or rental income from UK or international properties typically qualify, as do individuals with substantial savings meeting Spanish financial sufficiency standards.

The visa provides one-year initial residence authorization, renewable for two-year periods if conditions remain satisfied. After five years of continuous legal residence, permanent residency becomes available, eliminating ongoing income documentation requirements. This creates a pathway to indefinite Spanish residence without property investment obligations, though many NLV holders purchase Mallorcan properties to satisfy accommodation requirements and demonstrate long-term commitment.

Non-Lucrative Visa Requirements

Financial Requirements

• Primary applicant: €28,800 minimum annual income (400% of Spain’s IPREM public income indicator)
• Spouse: Additional €7,200 annually (100% IPREM)
• Each dependent child: Additional €3,600 annually (75% IPREM)
• Family of four: €42,600 minimum annual income required

Income must be passive (pensions, investments, rental income) and cannot include salary from Spanish employment. Spanish authorities accept UK state pensions, private pensions, investment dividends, government bonds, rental income from international properties, and trust distributions. Employment income from remote work or freelancing disqualifies applicants—Digital Nomad Visa applies for those circumstances.

Financial documentation requirements:

• Six months of bank statements showing regular income deposits
• Pension statements or investment account reports
• Property rental agreements and income evidence
• Tax returns demonstrating passive income sources
• Letter from financial institutions confirming account balances

Residency Obligations
NLV holders must reside in Spain for at least 183 days annually (six months plus one day) to maintain visa validity and progress toward permanent residency. This obligation requires genuine physical presence—border stamps and rental agreements demonstrate compliance. Extended absences (more than six months consecutively or cumulative annual absence exceeding 179 days) terminate visa validity and reset the five-year permanent residency clock.

This substantial presence requirement suits genuine residents rather than those seeking occasional Mallorca visits. Property owners using Mallorcan homes primarily as holiday retreats while maintaining UK or other primary residences find NLV obligations impractical. The visa serves buyers genuinely relocating to Spain, not those maintaining dual-residence patterns.

Accommodation Evidence
Applications require proof of Spanish accommodation—rental contracts, property deeds, or formal accommodation offers. Property ownership strengthens applications considerably, demonstrating financial capacity and genuine residence intention. Luxury property buyers typically submit property purchase deeds as accommodation evidence, satisfying requirements while showcasing substantial Spanish economic ties.

Rental agreements are acceptable but require minimum one-year terms and landlord documentation (property ownership proof, tax identification numbers, signed declarations). Short-term holiday rentals don’t satisfy requirements—accommodation must demonstrate genuine residential use rather than tourist stays.

Health Insurance
Comprehensive private health insurance without co-payments or deductibles covering all medical services in Spain proves mandatory. UK EHIC cards don’t satisfy NLV requirements. Insurance must be provided by companies authorised to operate in Spain, with annual costs ranging €50-150 per person monthly depending on age and coverage levels.

Major providers serving NLV applicants include Sanitas, Asisa, DKV, and Adeslas. Policies should cover hospitalisisation, specialist consultations, emergency care, prescription medications, and repatriation if needed. Pre-existing conditions must be covered without exclusions—blanket medical coverage policies are required, not basic emergency-only plans.

Criminal Records
Clean criminal record certificates from all countries where applicants lived during the previous five years are mandatory. UK nationals obtain Disclosure and Barring Service (DBS) certificates; Americans require FBI background checks. Each certificate requires apostille (official authentication) for Spanish legal validity. Minor traffic violations typically don’t disqualify applicants, but any criminal convictions require legal review to assess eligibility impact.

Non-Lucrative Visa Costs

Total first-year costs: €7,500-14,500 for individual applicant, €12,000-22,000 for family of four. These expenses substantially exceed Golden Visa advisory costs (€4,000-8,000 typically), primarily due to higher tax planning complexity and stricter documentation requirements.

Tax Implications for NLV Holders

NLV holders become Spanish tax residents after 183 days annual presence, triggering worldwide income reporting obligations. Spain taxes residents on global income, including UK pensions, dividends, rental income, and capital gains from all sources. However, double taxation treaties between Spain and most countries prevent actual double taxation through foreign tax credits and specific exemptions.

Key tax considerations:

• UK state pensions: Taxable only in Spain under UK-Spain treaty (not taxed in UK)
• UK private pensions: Generally taxable in Spain (with treaty relief for double taxation)
• Investment dividends: Taxed in Spain at 19-26% depending on amounts
• Rental income: Taxed in Spain (with foreign tax credit for taxes paid in source country)
• Capital gains: Spanish rates 19-26% apply to worldwide assets

Spanish tax residents must file annual tax returns (IRPF) and potentially wealth tax returns (Patrimonio) if assets exceed €700,000 in most regions, or €2 million in Madrid. Mallorca (Balearic Islands) applies €700,000 wealth tax threshold, meaning luxury property owners typically face wealth tax obligations ranging 0.28-3.45% on net asset values exceeding thresholds.

Professional tax advice proves essential. Qualified advisors structure arrangements minimising global tax liability while ensuring full compliance in all relevant jurisdictions. Costs range €3,000-8,000 initially for tax residence planning, with annual compliance services (tax returns, wealth tax declarations, Modelo 720 foreign asset reporting) costing €2,500-5,000 depending on complexity.

Frequently Asked Questions: Non-Lucrative Visa

Can I work while holding a Non-Lucrative Visa?
No. The Non-Lucrative Visa explicitly prohibits any work activity in Spain, including employment, freelancing, or operating businesses. Income must derive from passive sources (pensions, investments, rental income from non-Spanish properties). Violating this prohibition voids your visa and creates immigration violations potentially barring future applications.

Do I need to demonstrate Spanish language skills?
No Spanish language requirements exist for initial NLV applications or renewals. However, Spanish proficiency significantly improves daily life quality and eventual citizenship applications require DELE A2 certificate (basic conversational competency). Many applicants begin Spanish lessons during the application process.

Can I include my adult children in the application?
Dependent children over 18 qualify if they’re financially dependent and enrolled in full-time education in Spain. Children over 18 who are financially independent or working must apply for their own residency permits under appropriate visa categories.

What’s the Digital Nomad Visa and who qualifies?

Spain’s Digital Nomad Visa, launched in January 2023, targets remote workers, freelancers, and international business owners conducting work for non-Spanish clients. The visa suits property buyers maintaining careers or businesses based outside Spain while seeking Spanish residency. Unlike the Non-Lucrative Visa prohibiting work, the Digital Nomad Visa explicitly authorises remote work and even permits limited Spanish client work (up to 20% of total income).

The visa provides one-year initial authorisation, renewable up to five years if conditions remain satisfied. Like the NLV, it progresses toward permanent residency after five years of continuous legal residence. However, Digital Nomad Visa holders face lower annual presence requirements (90 days initially, increasing to 183 days after the first year), making it more flexible for buyers maintaining international business operations requiring frequent travel.

Digital Nomad Visa Requirements

Income Requirements

• Minimum €28,000 annually (€2,334 monthly) from remote work or international clients
• Income must derive from employment with foreign companies, freelancing for international clients, or operating businesses registered outside Spain
• Up to 20% of income can come from Spanish clients, but primary income (80%+) must originate outside Spain
• Three months of continuous employment or client contracts required before application

Documentation proving remote work capability:

• Employment contracts with foreign companies specifying remote work arrangements
• Freelance service agreements with international clients
• Business registration documents for companies operating outside Spain
• Six months of bank statements showing regular income deposits
• Client invoices and payment records demonstrating ongoing business relationships
• Tax returns confirming international income sources

Residency Requirements

• First year: Minimum 90 days annual presence in Spain
• Subsequent years: 183 days annual presence required (same as Non-Lucrative Visa)

The initial year’s lower presence requirement accommodates business owners maintaining international operations requiring extensive travel. After establishing Spanish residence, standard tax residency obligations apply, triggering the 183-day annual presence threshold for permanent residency progression.

Accommodation and Health Insurance
Identical to Non-Lucrative Visa requirements:

• Proof of Spanish accommodation (property deed, one-year+ rental contract)
• Comprehensive private health insurance without co-payments
• Clean criminal records from all countries of residence during previous five years

Professional Qualifications
Applicants must demonstrate professional competence through:

• University degrees (bachelor’s or higher)
• Professional certifications in technical fields
• Three+ years of verifiable work experience in their profession

Spanish authorities assess whether applicants possess legitimate skills supporting sustainable remote work, preventing visa misuse by those lacking genuine remote employment prospects.

Special Tax Regime for Digital Nomad Visa Holders

Digital Nomad Visa holders benefit from unique tax advantages unavailable to other visa categories. The “Beckham Law” special tax regime (originally designed for relocated football players and executives) extends to digital nomads, allowing flat 24% income tax on Spanish-source income up to €600,000 annually for the first five years of tax residency.

This regime applies only to Spanish-source income. Foreign-source income (employment with international companies, fees from non-Spanish clients) remains taxed at standard Spanish rates (19-26% on investment income, 19-47% on employment income exceeding Spanish thresholds). However, the 24% flat rate on Spanish-source income creates significant savings compared to standard progressive rates reaching 47% for high earners.

Crucially, the special regime exempts foreign assets from Spanish wealth tax during its validity. This provides substantial benefit for UHNWI digital nomads owning international investment portfolios, as standard Spanish tax residents face 0.28-3.45% annual wealth tax on worldwide assets exceeding €700,000 (Balearic Islands threshold).

Professional tax advice determines whether special regime election optimises your specific circumstances. Taxpayers must choose between special regime (24% flat rate on Spanish income, exemption for foreign assets) and standard regime (progressive rates, potential double taxation treaty benefits) within six months of establishing Spanish tax residence. The election is irrevocable for the regime’s duration.

Digital Nomad Visa Costs

Total first-year costs: €9,000-16,500 for individual applicant. Tax advisory costs exceed Non-Lucrative Visa expenses due to special regime analysis, foreign income optimisation, and potentially complex corporate structure considerations for business owners.

Frequently Asked Questions: Digital Nomad Visa

Can I work for Spanish companies with a Digital Nomad Visa?
Yes, but Spanish-source income cannot exceed 20% of your total annual income. Primary revenue (80%+) must derive from foreign companies or international clients. Exceeding this threshold converts you into a standard employment situation requiring Spanish work permits and employer tax withholding.

Do I need to pay Spanish income tax on my UK salary?
Yes, if you spend 183+ days annually in Spain. Spanish tax residents pay taxes on worldwide income, including UK salaries. However, UK-Spain double taxation treaty prevents actual double taxation through foreign tax credits. The Beckham Law special regime may reduce Spanish tax on certain income types—professional advice determines optimal structuring.

Can my spouse work in Spain under my Digital Nomad Visa?
Spouses receive dependent residence permits but these don’t automatically authorise work. Spouses requiring work permission must apply for separate work authorisations or their own appropriate visa categories (employment visa, self-employment visa, or their own Digital Nomad Visa if qualifying).

Should I still buy property in Mallorca without a Golden Visa?

Absolutely. Mallorca’s luxury property market fundamentals remain compelling independently of residency benefits. Supply constraints, international demand, lifestyle appeal, and strong rental yields drive values regardless of visa considerations. Many buyers never pursued Golden Visas even when available, prioritising property appreciation, rental income, and lifestyle utility over residency pathways.

Investment Case for Mallorca Property Without Residency Benefits

Market Fundamentals

• Supply constraints: Strict planning regulations limit new luxury development, particularly in Southwest coastal zones and Serra de Tramuntana region. Less than 500 building licences approved annually for detached villas across entire island.
• International demand: 14.6% foreign buyer share (2024) continues growing, with British, German, and Scandinavian buyers dominating high-end market segments.
• Appreciation rates:Southwest Mallorca properties appreciated 45-60% between 2015-2024, averaging 4-7% annually. This substantially exceeds UK property appreciation (averaging 3-4% annually) during the same period.
• Rental yields: Luxury properties in prime areas generate 4-6% gross annual yields through holiday letting (May-October). Properties with valid tourist licences command €5,000-12,000 weekly rates during peak season.

Lifestyle Value
Property purchases motivated primarily by lifestyle rather than residency increasingly dominate Mallorca’s luxury market. Buyers seek:

• Mediterranean climate (300+ sunshine days annually)
• Proximity to UK/Europe (2.5 hour flight from London, 40+ daily flights peak season)
• International schools (for buyers with families)
• Golf, sailing, and cultural amenities
• European legal framework and property rights protections

These lifestyle factors remain unaffected by Golden Visa termination. Properties serve as holiday homes, rental investments, or eventual retirement bases regardless of immediate residency possibilities.

Tax Efficiency
Non-resident property owners face simpler Spanish tax obligations than residents. Non-residents pay:

• IBI (annual property tax): 0.4-1.1% of cadastral value
• Non-resident income tax: Deemed rental income of 1.1-2% of cadastral value, taxed at 19% for EU residents (24% for non-EU)
• Wealth tax: Generally exempt unless spending 183+ days annually in Spain

These obligations significantly reduce compared to Spanish residents facing worldwide income taxation, wealth tax on all global assets, and capital gains tax on international investments. Many buyers prefer maintaining non-resident status to simplify tax compliance and reduce overall tax burden.

Strategic Buying Without Golden Visa Constraints

Golden Visa termination enables more strategic property decisions unconstrained by artificial €500,000 thresholds. Previous buyers occasionally stretched budgets or compromised on property selection to reach this minimum, purchasing properties slightly larger or more expensive than genuinely required to secure residency benefits.

Now buyers can optimise purchases for actual needs:

• Budget €350,000-450,000: Quality townhouses and apartments in Palma, Santa Ponsa, or Alcúdia without artificial inflation to reach €500,000
• Budget €600,000-900,000: Exceptional value in mid-luxury segment previously overshadowed by Golden Visa threshold properties
• Budget €1.5-3 million: Purchase driven by genuine property merits rather than residency requirements, enabling better negotiation and fit-for-purpose selection

This flexibility particularly benefits buyers seeking rental investment properties optimising yield rather than residency-qualifying capital values. A €400,000 holiday apartment in excellent rental location generates superior returns compared to a marginal €500,000 property purchased primarily to meet visa thresholds.

How do Mallorca’s residency options compare to other European programmes?

Several European countries maintain property-based or investment-based Golden Visa programmes despite Spain’s termination. Greece, Malta, and Italy offer residency-through-investment pathways with varying minimum investments, residency obligations, and tax implications. These alternatives suit buyers prioritising EU residency access over specifically Spanish residence, though each programme contains nuanced requirements affecting practical utility for luxury property investors.

European Golden Visa Comparison

Greece Golden Visa

Greece’s Golden Visa requires €250,000-€800,000 property investment depending on location. High-demand areas (Athens, Thessaloniki, Mykonos, Santorini, islands with 3,100+ residents) require €800,000 minimum since September 2024. Properties converted from commercial to residential use, or buildings with historical/cultural significance, maintain €250,000 thresholds. Other regions require €400,000 minimum.

The programme provides five-year residence permits renewable indefinitely with no minimum stay requirements. Permit holders access Schengen zone travel, can work in Greece, and progress toward citizenship after seven years of continuous residency (which contradicts the no-stay-requirement for permit renewals—actual residency required for citizenship eligibility).

Comparison to Mallorca property investment:

• Price advantage:Greek island properties (Crete, Rhodes, Corfu) cost 30-40% less than equivalent Mallorca coastal properties
• Rental yields: Generally comparable (4-6% gross yields) in established tourist areas
• Infrastructure:Greek islands typically offer less developed infrastructure compared to Mallorca’s sophisticated amenities, international schools, and healthcare facilities
• Appreciation potential:Greek property market remains in growth phase following 2008-2015 crisis, potentially offering stronger appreciation upside than mature Mallorcan market

Greece suits buyers prioritising EU residency access with minimal stay obligations and seeking value-oriented property investments. Mallorca offers superior lifestyle infrastructure but requires alternative visa pathways (Non-Lucrative, Digital Nomad) demanding actual residency.

Malta Golden Visa

Malta requires €350,000 property purchase in combination with government bond investments and administrative fees totalling approximately €700,000 for citizenship pathways. Alternatively, property rental (€16,000 annually minimum) plus investments qualify for initial residence permits.

Malta provides fast-track to EU citizenship – just five years from initial residence permit if maintaining qualifying investments and spending minimum 14 days annually in Malta. This creates the EU’s fastest property-linked citizenship pathway for non-EU nationals.

Comparison to Mallorca:

• Total investment: Substantially higher than former Spanish Golden Visa (€700,000+ versus €500,000)
• Language: English as official language simplifies administration and daily life
• Market size:Malta’s property market is significantly smaller than Mallorca’s, limiting investment property diversity
• Lifestyle:Compact island (316 km² versus Mallorca’s 3,640 km²) with Mediterranean climate but different cultural atmosphere
• Tax regime: Malta’s tax incentives for non-habitual residents provide advantages for UHNWI investors

Malta suits buyers prioritising rapid EU citizenship, English-language environment, and tax optimisation. Mallorca offers superior property market depth and lifestyle amenities but requires longer citizenship pathways (10 years via Spanish naturalisation).

Italy Investor Visa

Italy’s Investor Visa requires €2 million+ investments in Italian companies, government bonds, or philanthropic projects – notably not requiring property purchase. However, purchasing Italian property strengthens applications by demonstrating accommodation and genuine residency intention. Many applicants combine €2 million investment requirements with property purchases for personal use.

The programme provides two-year residence permits renewable indefinitely, with pathway to citizenship after 10 years of continuous legal residence. No minimum stay requirement exists initially, though citizenship requires demonstrating genuine residence through substantial annual presence (approximately 183 days annually, though not explicitly specified in initial permit requirements).

Comparison to Mallorca property investment:

• Investment amount: €2 million minimum substantially exceeds Spanish Golden Visa (€500,000) or Greek alternatives
• Property not required: Investment flexibility allows allocating capital to potentially higher-return Italian businesses or bonds rather than property
• Cultural access: Italy’s artistic, culinary, and cultural attractions appeal to specific buyer demographics
• Complexity: Application process and investment structuring more complex than straightforward property-purchase programmes

Italy suits UHNWI investors with €2-3 million+ allocations seeking diversified investment strategies beyond property. Mallorca property investments offer simpler transactions with lower capital requirements, though now requiring separate residency pathways (Non-Lucrative or Digital Nomad visas).

What’s the long-term outlook for foreign property buyers in the Balearics?

Mallorca’s luxury property market remains fundamentally sound for international buyers despite Golden Visa termination. Market drivers transcend residency programmes: supply constraints, international demand, Mediterranean lifestyle appeal, and political stability support long-term value appreciation independently of visa policies.

Structural Market Factors

Supply Constraints Will Persist
Balearic Islands planning regulations restrict new development, particularly in coastal zones within 100 metres of shoreline and Serra de Tramuntana UNESCO World Heritage areas. These protections, established to preserve environmental quality and prevent overdevelopment, create permanent supply limitations supporting property values.

Annual building licence approvals average fewer than 500 detached villas across entire island. Planning applications require 12-24 months for approval, with rejection rates exceeding 40% in protected zones. This regulatory environment guarantees continued scarcity in prime luxury markets (Port d’Andratx, Deià, Pollença, exclusive Palma districts), supporting 4-7% annual appreciation rates documented over the past decade.

New supply concentrates in approved urban expansion zones (Son Vida periphery, Calvià municipality inland areas), while coastal luxury property remains essentially fixed stock with limited new construction possibilities. This dynamic favours existing property owners holding assets in established premium locations.

International Demand Continues Growing
Foreign buyer share in Balearic property market reached 14.6% in 2024, continuing decade-long growth trend. German buyers (traditional market leaders) comprise 25-30% of foreign purchases, British buyers 20-25%, Scandinavian buyers 15-20%, with American and Middle Eastern buyers increasing presence annually.

This diversified demand base provides resilience against single-nationality economic cycles. When British buying softened following 2016 Brexit referendum, German and Scandinavian demand absorbed available inventory. When COVID-19 restricted travel in 2020-2021, pent-up demand surged in 2022-2023, driving prices upward 15-18% in prime areas.

Remote work normalisation post-COVID expands buyer demographics beyond traditional retirees and second-home owners. Digital professionals in 30s-40s now comprise growing luxury buyer segment, seeking properties accommodating home offices and high-speed connectivity alongside lifestyle amenities. This younger buyer cohort brings longer holding periods and higher renovation investment compared to traditional holiday-home buyers.

Brexit’s Long-Term Implications
British buyers—historically comprising 30-40% of foreign Mallorcan purchases—face ongoing 90-day Schengen visit limits within each 180-day period. This restriction reduces practical utility for UK buyers maintaining Mallorcan properties as second homes without Spanish residency, limiting annual usage to approximately 90-100 days split across multiple visits.

However, this challenge simultaneously creates opportunity. British buyers increasingly pursue Spanish residency (Non-Lucrative or Digital Nomad visas) specifically to remove visit limitations. Property purchases strengthen residency applications by demonstrating accommodation and Spanish economic ties. What previously served as holiday homes now function as primary residences for longer periods, increasing overall usage and potentially reducing rental income expectations—which may slow price appreciation in segments relying heavily on rental yield justification.

Professional British buyers maintaining UK businesses or employment increasingly use Digital Nomad Visas, enabling Mallorca residence while continuing international work. This arrangement optimises both lifestyle goals and business continuity, creating growing demand segment specifically enabled by recent Spanish immigration reforms.

Regulatory Risk Considerations

Further Housing Restrictions Possible Spain’s housing crisis, cited as justification for Golden Visa termination, persists unresolved. Political pressure continues for additional measures restricting foreign property purchases or limiting holiday rental activities. Balearic Islands government has already implemented strict tourist rental licensing limits, capping new licences and requiring existing operators to meet enhanced standards.

Future scenarios potentially affecting international buyers include:

• Higher property transfer taxes for non-residents: Differential tax rates charging foreign buyers 2-5 percentage points more than residents (discussed but not implemented)
• Additional restrictions on holiday rental licences: Further limits on tourist accommodation licences, particularly in residential zones
• Wealth tax increases: Balearic Islands maintains €700,000 wealth tax threshold (lower than Madrid’s €2 million exemption), with potential rate increases under political discussion
• Capital gains tax increases for non-residents: Currently 19% for EU residents, 24% for non-EU, but future increases discussed

These regulatory risks remain speculative rather than imminent. However, buyers should recognise that Spanish property policy has become more restrictive (Golden Visa termination, tourist rental licensing constraints) rather than liberalising. Long-term investment theses should contemplate potential for additional constraints rather than assuming policy stability.

Climate and Environmental Considerations
Mediterranean climate change brings increased drought frequency, water supply pressures, and wildfire risk in wooded areas. Mallorca experienced significant drought conditions in 2022-2023, triggering water use restrictions affecting swimming pools, garden irrigation, and golf courses. Properties with wells or private water supplies command premiums over those relying solely on municipal supplies.

Wildfire risk concentrates in Serra de Tramuntana pine forests, particularly during summer months with high temperatures and low humidity. Properties in Deià, Sóller, Valldemossa require fire insurance and defensible space around structures. Climate adaptation costs (enhanced water storage, fire suppression systems, cooling improvements) should factor into long-term ownership budgets.

However, these challenges affect all Mediterranean markets (Greece, Southern France, Italy) comparably. Mallorca’s institutional capacity for climate adaptation (sophisticated water management, fire response infrastructure) arguably exceeds less-developed Mediterranean islands, providing relative advantage despite absolute challenges.

Strategic Positioning for Long-Term Value

Buy Best-in-Class Properties in Proven Locations
Concentrate investments in established luxury markets with permanent scarcity characteristics: Port d’Andratx waterfront, Deià village centre, Pollença old town, Son Vida estates. These micro-markets consistently outperform during market downturns and capture disproportionate upside during growth phases.

Secondary markets (Artà, Campos, Ses Salines) offer value but lack scarcity protection and institutional buyer support during market corrections. €1.5-3 million in Port d’Andratx waterfront demonstrably preserves value better than €1.5-3 million in emerging markets during cyclical downturns, even if emerging markets show stronger percentage appreciation during optimistic phases.

Prioritise Properties with Rental Income Capability
Tourist rental licences provide optionality and income generation offsetting holding costs. Properties with valid licences (licencias turísticas) command 10-15% premiums over equivalent unlicensed properties and sell faster during market adjustments. Even if not actively renting, licensed properties retain strategic flexibility for monetisation if circumstances change.

Balearic government no longer issues new tourist licences in many residential zones, making existing licences valuable. Purchase properties with licences already secured, or verify eligibility and complete licensing before new restrictions potentially apply.

Structure Ownership for Flexibility
Spanish property can be held directly, through Spanish corporations (SL), or foreign companies. Each structure carries distinct tax implications:

• Direct personal ownership: Simplest structure, subject to Spanish inheritance tax (4-8% in Balearics for direct descendants, higher for more distant relatives)
• Spanish SL (limited company): Provides corporate veil, potentially useful for liability management or complex multi-property holdings. Adds complexity and annual costs (accounting, corporate tax filings)
• UK/offshore companies: Previously common for tax minimisation, now heavily scrutinised. Spanish authorities apply 3% annual imputed income tax on property values held through non-Spanish companies, making this structure tax-inefficient for most circumstances

Professional advice from Spanish tax lawyers determines optimal structure for specific situations. Most €1.5-3 million single-property buyers use direct personal ownership, with married couples optimising co-ownership percentages (50/50, 99/1, or other ratios) for tax and inheritance planning.

Frequently Asked Questions: Long-Term Outlook

Will Spain ban foreign property purchases completely?
Extremely unlikely. Spain values foreign direct investment and tourism revenue (12.4% of GDP). Golden Visa termination targeted specific residency-for-investment concerns rather than foreign property ownership broadly. Complete purchase bans would violate EU principles of capital movement and trigger significant economic damage to construction, real estate services, and regional economies dependent on foreign buyer activity.

Should I wait for prices to drop after Golden Visa termination?
Market data through November 2025 shows no price corrections following April 2025 Golden Visa termination. International buyer activity continues at pre-termination levels, with Non-Lucrative and Digital Nomad visa applications offsetting Golden Visa decline. Waiting strategies risk missing current inventory in rising market while exposing to currency fluctuations and policy changes.

How does Mallorca compare to Greek islands for long-term investment?
Mallorca offers superior infrastructure (healthcare, international schools, connectivity), established luxury property market with transaction transparency, and mature legal/advisory services. Greece provides lower entry prices and active Golden Visa programme but less sophisticated infrastructure and smaller established luxury market. Both markets have merit depending on specific priorities (residency requirements, lifestyle preferences, budget constraints).

Which professional advisors do I need for residency applications?

Successful residency applications—whether Non-Lucrative, Digital Nomad, or alternatives—demand coordinated legal, tax, and immigration advisory. The Golden Visa’s simplicity allowed some applicants to navigate processes independently; current pathways require professional support to avoid costly errors and optimise tax outcomes.

Essential Advisory Services

Immigration Lawyers
Spanish immigration law firms specialising in residency applications guide documentation preparation, consulate appointments, and application submissions. Costs typically run €2,500-5,000 for Non-Lucrative applications including document review, translation coordination, and consulate representation. Complex cases involving dependents, multiple income sources, or unusual documentation requirements can reach €6,000-8,000.

Selecting qualified immigration counsel requires verifying credentials. Look for lawyers registered with Spanish regional bar associations (Colegios de Abogados), memberships in immigration law societies, and experience specifically in residency applications at your relevant consulate. Request references from recent successful applicants with similar circumstances. Immigration lawyers should not handle property transactions or tax planning—their scope stays narrowly focused on residency applications.

International Tax Advisors
Cross-border tax specialists structure arrangements minimising global tax liability while ensuring compliance in all relevant jurisdictions. Spanish tax residents face worldwide income reporting obligations; advisors optimise treaty benefits, foreign tax credits, and available exemptions across your specific income sources and residency patterns.

Tax advisory fees range from €3,000-8,000 for initial residency tax planning, with annual compliance services (Spanish tax returns, Modelo 720 foreign asset declarations, wealth tax calculations) costing €2,500-5,000 depending on complexity. UK and US nationals require advisors with specific expertise in Spanish-British and Spanish-American treaty provisions, as standard Spanish tax advice often misses critical optimisation opportunities.

Property Lawyers (Abogados)
Spanish property lawyers handle purchase transactions independently from immigration counsel. They verify title, coordinate mortgage arrangements (if applicable), manage notary appointments, and register purchases. Property law fees in Mallorca typically equal 1-1.5% of purchase price, or €12,000-22,500 on a €1.5 million property.

Property lawyers should not handle residency applications—these require separate immigration specialists—but they coordinate accommodation documentation needed for visa applications. The property deed serves as proof of accommodation for residency permits, and lawyers ensure correct certification and apostille for consulate submission.

Currency Specialists
Foreign exchange brokers structure payment strategies for property purchases, managing deposits, completion payments, and post-purchase expenses across multiple currencies. Competitive rates save 2-3% versus high-street bank transfers on transactions exceeding £500,000, representing £10,000-£15,000+ in reduced costs.

Currency specialists also coordinate tax payment obligations in euros when clients maintain income in other currencies, preventing adverse rate movements affecting cash flow. Forward contracts lock rates for 12 months, enabling predictable budgeting for IBI taxes, community charges, and utility bills in euro terms.

Advisory Coordination and Costs

Budget €25,000-45,000 for comprehensive advisory services supporting property purchase and residency application:

Total first-year costs (excluding property transaction): €23,000-43,000
Annual ongoing costs (tax, accounting): €4,000-8,000

These expenses substantially exceed Golden Visa advisory costs, which typically ran €4,000-8,000 total given that programme’s simplicity. However, proper structuring saves multiples of advisory fees through tax optimisation, preventing application errors, and optimising currency exchange. UHNWI buyers spending €1.5-3 million on Mallorcan property should view €30,000-40,000 in professional fees as essential protection of a seven-figure investment rather than discretionary expense.

Key Takeaways

Spain’s Golden Visa programme ended 3rd April 2025 after issuing over 22,430 residencies since 2013. Existing permit holders retain full renewal rights indefinitely provided they maintain €500,000 property investments and meet annual visit requirements.

Alternative residency pathways remain available for Mallorca luxury property buyers. The Non-Lucrative Visa suits financially independent buyers with €28,800+ annual passive income, requiring 183 days annual Spanish presence. Digital Nomad Visas serve remote workers and international business owners earning €28,000+ annually from non-Spanish sources, offering special tax regime benefits and lower initial presence requirements.

Mallorca’s property investment case remains strong without Golden Visa benefits. Market fundamentals—supply constraints, international demand, lifestyle appeal—drive 4-7% annual appreciation independently of residency programmes. Strategic buyers now purchase properties matching genuine requirements rather than artificial €500,000 thresholds, enabling better value optimisation.

European alternatives exist in Greece (€250,000-€800,000 property investment, no stay requirement), Malta (€350,000 property + fees, fast citizenship path), and Italy (€2 million+ non-property investments). Each programme offers distinct advantages depending on specific residency priorities and budget parameters.

Professional advisory costs €25,000-45,000 first year for coordinated immigration law, tax planning, property conveyancing, and currency management. These expenses prove worthwhile for buyers making multi-million euro property commitments while navigating complex cross-border residency and taxation requirements.

For exclusive access to Mallorca’s most exceptional luxury properties and comprehensive market insight, contact our specialized advisory team at mallorca@blackprive.com

Related Articles

• Mallorca Luxury Property Market: Complete Investment Guide 2026
• Brexit Impact on British Buyers: Mallorca Property Guide
• Mallorca Property Taxes for Non-Residents: Complete Guide 2025-2026
• Mallorca Property Purchase: Complete Legal Process Guide

Author Bio

Alexander Thornbury MRICS specialises in Mediterranean luxury property markets and cross-border investment structuring for UHNWI clients. With 15 years advising on European real estate transactions exceeding €500 million in aggregate value, Alexander provides institutional-grade analysis of legal processes, due diligence requirements, and transaction risk mitigation strategies. His expertise in Spanish property law and Balearic market customs helps international buyers navigate complex legal frameworks protecting seven-figure investments.

His analysis is for informational purposes only and does not constitute legal, tax, or investment advice.

References and Sources

• Property Market Data: Transaction volumes and foreign buyer statistics verified through Idealista property market data and statistics.
• Tax & Treaty Information: Non-lucrative visa income requirements (€28,800 annually), digital nomad visa tax treatment, and cross-border tax implications verified through Spanish Tax Agency (Agencia Tributaria) and UK-Spain Double Taxation Convention provisions.

Methodology Note All regulatory changes verified against primary legal sources including BOE Official State Gazette Organic Law 1/2025. Residency requirements and application procedures confirmed through Spanish Ministry of Justice official guidance. Tax implications verified through Spanish Tax Agency regulations and international tax treaty provisions.