Spain scraps ‘Golden Visa’ program to reduce property speculation
Spanish Prime Minister Pedro Sánchez stated that due to the recipients of visas, local housing markets are experiencing significant pressure.
Spain has decided to join the UK, Portugal, and Ireland in discontinuing its “Golden Visa” program, which offered fast-tracked residency for foreign investors.
During a cabinet meeting on April 9, Spanish ministers unanimously agreed to eliminate the visa scheme.
On April 8, while visiting Dos Hermanas in Seville, Prime Minister Pedro Sánchez explained that the decision was made to prevent speculative investments in housing. The majority of visa holders were concentrated in cities like Madrid, Barcelona, and other tourist destinations, creating immense pressure on the local housing market and making it difficult for residents to find affordable housing.
The Golden Visa allowed non-EU citizens to obtain a residence permit to live and work in Spain for three years by purchasing a property worth at least 500,000 euros ($530,000) or investing 2 million euros ($2.1 million) in state bonds or emerging Spanish companies.
Spain introduced this visa program in 2013 during the eurozone crisis.
Figures from Transparency International revealed that by 2023, Spain had issued 6,200 Golden Visas, with Chinese beneficiaries receiving 2,712 visas, followed by Russians, Iranians, Americans, and Britons.
Lai Jianping, a former Beijing lawyer, expressed concerns about the speculative behavior of foreign investors entering EU states and the consequent inequality between local middle and lower-class residents.
More EU Countries Discontinue Golden Visa
Spain is not alone in ending its Golden Visa program. Portugal revised its scheme in October 2023, removing real estate investments as a basis for applications. The Netherlands also announced the termination of its program, and Ireland discontinued its Immigrant Investor Program in February 2023.
The European Commission has called on EU members to stop selling citizenship to investors due to security concerns, especially after the Russia-Ukraine conflict.
Despite initial hopes to boost economic growth through investment migration, European countries have found the results underwhelming, with concerns raised about potential misuse of the program for personal gains.
Few Countries Still Offer Golden Visas
A few EU countries, including Malta, Italy, and Greece, continue to offer Golden Visas with varying criteria and investment thresholds.
Greece, for example, recently increased its minimum investment threshold for the Golden Visa program, reflecting ongoing changes in visa schemes across Europe.
Xin Ning contributed to this article.
