Spain will abolish the so-called “golden visa” program, which gives the right of residence to foreigners who make large investments in real estate in the country. This was stated by Spanish Prime Minister Pedro Sanchez, reports Reuters.
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Sánchez said ending the scheme would help make access to affordable housing “a right and not a speculative business.”
The program provides non-EU citizens who invest at least €500,000 – without a mortgage – in Spanish property with a special permit allowing them to live and work in the country for three years.
Today 94 out of every 100 such visas are related to real estate investments… in major cities that face extremely tight markets and where it is almost impossible to find decent housing for those already living, working and paying taxes,” Sanchez said.
He added that the government would launch the process of winding up the scheme at its weekly cabinet meeting on Tuesday after examining a report presented by the Housing Ministry.
Property Investors
According to the Spanish government, since the start “golden visas” in 2013 to November 2022, Spain issued almost 5,000 permits to live and work in the country.
Chinese investors top the list, followed by the Russians, who have invested more than €3.4 billion, according to a 2023 Transparency International report that questions whether authorities have investigated the origin of the funds.
It is noted that this The measure is unlikely to have an impact on the real estate market because, according to the website Idealista, less than 0.1% of the 4.5 million homes sold during this period were purchased under the golden visa program.
Housing problems
The housing problem in Spain was not caused by golden visas, but rather by a lack of supply and a surge in demand, Idealista said.
“A measure announced today that focuses on international buyers , and not on stimulating the appearance of new houses on the market, is another erroneous diagnosis,” said Idealista speaker Francisco Inareta.
Recall
The “Ministry of Finance” wrote that neighboring Portugal recently updated its own “golden visa” program and excluded real estate investments from it in order to overcome the housing crisis. Foreigners wishing to obtain residency rights can still invest their money in investment funds.
