Spain Ends Golden Visa: What It Could Mean for Property Buyers in the Algarve
With Spain officially ending its Golden Visa route for real estate investors, international attention is increasingly shifting across the border to Portugal, and in particular, to regions like the Algarve. This change in policy could spark new momentum in Portugal’s property market, as investors look for attractive alternatives that still offer residency pathways.
Why Spain Pulled the Plug on Its Golden Visa
Spain introduced its Golden Visa programme in 2014, allowing non-EU nationals to gain residency by investing at least €500,000 in Spanish property. The initiative attracted billions in foreign investment but also faced criticism for contributing to housing unaffordability in major cities like Barcelona and Madrid. Earlier this year, the Spanish government announced it would end property-based residency visas, citing pressure on local housing markets as the main driver.
Portugal’s Golden Visa
Portugal’s version of the Golden Visa continues to offer foreign investors the chance to gain residency, though it has evolved over time. While direct residential property investment in major cities is no longer eligible, there are still qualifying routes through low-density regions, commercial real estate, and rehabilitation projects.
One key advantage? Lower investment thresholds. Depending on the route, investors can start from €250,000, significantly more accessible than Spain’s former €500,000 minimum.
Why the Algarve Stands Out
The Algarve has long been a magnet for overseas buyers, thanks to its stunning coastline, high quality of life, and thriving tourism sector. For those seeking Golden Visa opportunities, the region’s mix of qualifying investment options, relaxed lifestyle, and strong rental potential makes it particularly appealing.
Towns like Lagos, Carvoeiro, and Vilamoura, part of the Algarve’s stretch, offer in-demand properties and are increasingly attractive to those previously considering Spain. With Spain off the table for some, demand for Algarve homes may increase further.
What This Means for Buyers and Sellers
As more foreign buyers turn their sights on Portugal, especially the Algarve, we may see upward pressure on property prices in key areas. This could be beneficial for current owners considering selling, particularly those with high-end homes.
For buyers, this may be a timely moment to explore opportunities before demand accelerates. The window to secure a strong investment, potentially with added residency benefits, may not remain open indefinitely.
Final Thoughts
The end of Spain’s Real Estate Golden Visa signals a broader shift in the European property investment landscape. Portugal remains one of the few remaining destinations offering forms of investor-friendly and tax focused programmes, with the Algarve at the heart of the opportunity.
If you’re considering buying property in the Algarve, now could be the right time to take the next step.
Our team at Live In Holidays is here to guide you through the options and help you make a smart decision.
