Starting next year, Spain will halt the issuance of new residence permits through its Golden Visa Program, which grants residency to foreign nationals who make significant financial investments in the country.
The decision to end the program was made by Spain’s ruling Socialist Workers’ Party (PSOE) and its parliamentary allies. It was finalized during the processing of a new law in the Justice Commission, according to a report from La Región.
Spain’s Golden Visa Program has been one of the most popular residency-by-investment options in Europe. Under the program, wealthy individuals could obtain residency by making investments in Spain, with the most common method being the purchase of real estate valued at €500,000 or more.
However, the real estate investment option has been linked to Spain’s ongoing housing crisis. The surge in demand for properties from foreign investors has contributed to rising home prices, making housing less affordable for local residents.
In response, Spanish Prime Minister Pedro Sánchez announced in April that the government would end this residency route. He stated, “Tomorrow’s Council of Ministers will review a report from the Minister of Housing and Urban Agenda to amend the law, which was originally approved by the Popular Party in 2013. This law allows foreigners to obtain residence permits through property investments in Spain.”
The Golden Visa Program has faced criticism from the European Union, which has raised concerns about its potential to facilitate money laundering and other illicit activities. Critics argue that eliminating the real estate investment option is not enough to address these issues. Eka Rostomashvili, coordinator of the Spanish branch of Transparency International, emphasized that while removing this investment route is a step forward, it does not resolve the broader challenges. “This is a serious problem across all EU member states,” Rostomashvili said. “Countries are in a race to the bottom, competing to offer the most attractive conditions for investors, often at the expense of regulatory standards.”
Interestingly, the move to end the real estate investment route has led to an increase in demand for the Golden Visa Program. According to Juan Carlos Lois, an expert in international mobility, Spain saw a sharp rise in Golden Visa applications in August, with numbers tripling compared to the same month in 2023. Lois also noted that Spain received daily applications throughout the entire month of August.
As Spain prepares to end the real estate investment option in the Golden Visa Program, it remains to be seen how this shift will impact the country’s housing market and its broader immigration strategy.
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