Spain to End “Golden Visas” Through Property Purchase
Spain has announced its decision to end access to “golden visas” through the purchase of homes, a program that allowed selected applicants to live, work, or study in the country by investing half a million euros or more. The visas also granted access to travel freely throughout the European Union and the Schengen area.
The move comes as Spain aims to address the housing crisis and curb speculative investment in real estate, particularly in cities like Madrid, Barcelona, Valencia, and others facing high housing market pressures. The government of Pedro Sánchez emphasized the importance of making housing a right rather than a commodity for speculation.
Experts believe that the impact of this measure on the property market will be minimal, as less than 0.1% of homes sold since the program’s inception in 2013 were purchased through the golden visa scheme. While some believe the change is merely symbolic, others argue that it is a step towards addressing the complex issues contributing to the housing crisis in Spain.
The decision to end the golden visa program through property purchase aligns with the European Commission’s call for member countries to eliminate similar programs due to security risks and concerns about money laundering. Spain now joins other European nations like the UK, Ireland, and Portugal, which have also taken steps to end golden visas associated with property investments.
The program was initially introduced in 2013 to attract foreign capital to Spain following the real estate bubble burst. While the visas have been granted to investors from various countries, including China, Russia, Iran, Mexico, and Venezuela, the majority were linked to property acquisitions.
As Spain transitions away from the golden visa program, the government is exploring other avenues to address housing affordability and access for its residents. The move reflects a broader effort to ensure that housing is a fundamental right for all individuals in the country.