In the fight against housing shortages
Spain stops Golden Visa program
April 8, 2024, 6:47 p.m
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So far, wealthy non-EU citizens can easily obtain a place of residence in Spain. However, the awarding of such golden visas should stop in the future. Prime Minister Sánchez sees this as a cause of the housing shortage.
To combat the housing shortage in Spain, the left-wing central government has decided to end the Golden Visa program for real estate investors from non-EU countries. The aim is to curb speculation, explained Prime Minister Pedro Sánchez in Seville. “We will take the necessary measures to ensure that housing is a right and not a speculative business.” The Council of Ministers will seal the necessary change in the law on Tuesday in Madrid, said the socialist politician. However, he did not give a possible date for the entry into force.
Since 2013, the Golden Visa program has allowed citizens from non-EU countries to acquire residency in Spain if they purchase property in the country worth at least 500,000 euros. It also applies to financial investments of at least one million euros in companies or two million euros in government bonds.
The program is also controversial in other countries
Similar programs were launched in other European Union countries during the euro crisis. The investor visa in return for the purchase of real estate is controversial everywhere because it is considered one of the causes of the price increases on the real estate market and the housing shortage.
Sánchez now said that in Spain, 94 percent of all golden visas are granted for investments in real estate. But the aim is to achieve “real and sustainable progress”. “We want to be a country for productive investment, creating innovation and quality employment,” he emphasized.
The situation is very tense, especially in large cities such as Madrid, Barcelona, Málaga and Valencia, but also in the Balearic Islands with the holiday island of Mallorca, said Sánchez. Due to the demand from wealthy foreigners, it is almost impossible for the locals “who live, work and pay taxes there to find decent accommodation.” According to official information, Spain has granted more than 5,000 Golden Visas since 2013, with more than 2,000 going to citizens from China.