Spain Wants to End Golden Visa Program

Removing the real estate investment option from Spain’s Golden Visa Program is not being considered sufficient by the authorities, as the government is planning to abolish the scheme altogether.

The government, led by Prime Minister Pedro Sanchez’s Socialist Party (PSOE), has proposed an amendment to the country’s Residency by Investment Program that would eliminate all routes for acquiring residency through this program, according to Schengen.News.

This decision follows research revealing that nearly all golden visas were granted through the real estate investment option.

The government expressed concern that applicants from countries such as Russia might attempt to acquire residency in Spain through other investment forms, which could continue to impact housing prices.

Krista Victorio, Managing Partner and Client Services of Orience told Imi Daily that the PSOE’s proposal amends the Organic Law Project. While it is not directly related to Law 14/2013 of September 27 (the law that launched the program), it appears that the initiative is attempting to leverage an existing law project to indirectly affect the golden visa.

The new changes would eliminate all golden visa routes, including those acquired through investments in business projects.

Victorio mentioned that the proposal is currently in the article amendment phase, which will be open until September 4. The legislative process is set to begin no earlier than September 9.

Abolishing Real Estate Investment Options Not Considered Sufficient

Introduced in 2013, Spain’s Golden Visa Program allows internationals to acquire residency in exchange for financial investment and meet the required conditions.

Since its launch, more than 15,000 wealthy internationals have acquired residency in Spain through the Golden Visa Program, most of them by purchasing properties worth at least €500,000.

Real estate investment options were among the most popular routes for obtaining residency in Spain. However, to address the housing crisis, the Spanish government announced in April that purchasing a property worth €500,000 would no longer be an option for obtaining Spanish residency.

Confirming the end of the real estate investment option from the Residency by Investment Program, President Pedro Sanchez stated that Madrid would take all necessary measures to ensure that housing is a right, not “a mere speculative business.”

“I want to announce that tomorrow’s Council of Ministers is going to study a report submitted by the Minister of Housing and Urban Agenda to modify the law, approved by the Popular Party in 2013, which allows obtaining a residence visa if you invest in housing in our country,” said President Sanchez.

The EU Commission has often called on all EU countries operating the Golden Visa Program to terminate them, following allegations that these schemes are involved in several irregular affairs.