Spain is set to dismantle its cash-for-visas scheme, commonly known as the ‘golden visa’ program, as announced by Spanish Prime Minister Pedro Sánchez on Monday. The program, introduced in 2013, grants residency rights to non-EU citizens who make substantial investments in Spanish real estate.
During a visit to the Sevillian municipality of Dos Hermanas, Sánchez stated, “We are going to start the procedure to eliminate the granting of the so-called golden visa.” He emphasized the need to ensure housing as a fundamental right rather than merely a speculative business.
Under the current law, individuals investing a minimum of €500,000 in Spanish real estate without taking out a mortgage are eligible for a special permit, allowing them to reside and work in the country for three years. However, the majority of investments are heavily concentrated in major cities such as Barcelona, Madrid, Malaga, Alicante, Valencia, or Palma de Mallorca, according to El País.
Sánchez criticized the program, labeling it a “speculative model” that exacerbates housing shortages and inequality. He announced the government’s intention to formally initiate the process of eliminating the scheme during the weekly cabinet meeting on Tuesday, following a thorough review by the Housing Ministry.
The decision comes in the wake of a 2022 directive from the European Commission urging member countries to terminate similar programs due to security concerns, particularly in light of the Russian invasion of Ukraine. European Commissioner for Justice and Consumers, Didier Reynders, emphasized that “European values are not for sale,” asserting that the sale of citizenship through such schemes violates EU law and poses significant security risks.
Following the European Commission’s directive, several other EU member states, including Ireland, the Netherlands, Portugal, Greece, and Malta, have either abolished or tightened regulations surrounding their ‘golden visa’ programs or equivalent schemes.