Spain approves undocumented migrant amnesty policy, breaking with Europe’s migration crackdown

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The aim is to bring those already embedded in Spanish society into the formal economy, ensuring they can work legally, contribute taxes, and access protections.

Spain is charting a notably different course from much of Europe’s tightening grip on migration. The government has approved an amnesty programme that could allow up to 500,000 undocumented migrants to apply for legal status, in what Prime Minister Pedro Sánchez has described as both “an act of justice and a necessity.”

Under the plan, successful applicants will receive a one-year work and residency permit. To qualify, individuals must prove they have been living in Spain for at least five months, arrived before January 1, and have no criminal record. The policy aims to bring those already embedded in Spanish society into the formal economy, ensuring they can work legally, contribute taxes, and access protections.

The move places Spain at odds with many European neighbours, which are focused on curbing arrivals and increasing deportations. Yet Sánchez argues migrants are central to Spain’s current economic strength, helping to power what is now the fastest-growing economy in Europe. With an ageing population and mounting pressure on public services, the country faces a clear demographic challenge, one that immigration may help offset.

And there is growing evidence to support this view. Goldman Sachs research shows Spain’s economy has stood out, distinguished by its higher value-added services sector, and growth momentum that is expected to last for several years.

Their economists have raised their forecasts for Spain and now expect the economy to grow 1.9% in 2026 and 1.7% in 2027, compared with previous forecasts of 1.5% and 1.6%, respectively. This increases next year’s growth forecast for the entire euro area by 0.1 percentage point to 1.2%.

Filippo Taddei, senior economist focusing on southern Europe and European policy within the Goldman Sachs European Economics team, notes how Spain’s economy is getting a boost from immigration. The country is taking in more people relative to the size of its population than Germany, France, or Italy, and the latest influx is characterised by immigrants with higher levels of education and job skills. This distinctive demographic trend “could set Spain on a better footing” than the rest of Europe.

Public reaction to the amnesty has been predictably divided. Critics have echoed familiar anti-immigration tropes, warning of “the self-wrecking of Europe.” Others have responded with support, emphasising the human and economic logic of the policy. As one observer put it, granting legal status to hundreds of thousands of people represents “a huge shift toward stability and dignity for many families.”

Whether this approach becomes a model for others, or remains an outlier, remains to be seen.

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