The Spanish Government announced on Tuesday that it will be modifying the law regarding the “Golden Visa”, a residence permit granted to foreign citizens who invest in homes priced over 500,000 euros. President Pedro Sánchez stated that the Government would eliminate the law approved in 2013 by the Popular Party that allowed residence for investors.
The current law allows Golden Visa holders to reside for five years, with the possibility of extension for another five years, without a mandatory requirement to stay in the country to renew the permit. The Minister of Housing and Urban Agenda, Isabel Rodríguez, highlighted the affordable housing crisis in Spain and the impact of these investments on the market.
The measure to eliminate the Golden Visa program aims to provide opportunities for citizens facing housing challenges and to curb speculation in the real estate market. Despite concerns that the real estate market could be affected, less than 0.1% of homes sold were purchased under this program.
Rodríguez emphasized the need to intervene in the housing market speculation, especially in light of recent events such as the Russia-Ukraine conflict. The Golden Visa program, which has granted permits to thousands of non-European citizens since 2013, has drawn scrutiny from European institutions like the European Commission.
The Government’s plan includes promoting the construction of affordable housing and incentivizing foreign investment in property rehabilitation. With an allocation of 5,520 million euros for urban rehabilitation, the Government aims to ensure access to fair and affordable housing for all residents in Spain.