Spain abolishes "golden visas" to curb real estate speculation

Tuesday 09 April 2024 - 08:30

The Spanish government announced on Monday the abolition of "golden visas" granted to foreign nationals investing in real estate, aiming to curb speculation affecting many cities in the country.

Prime Minister Pedro Sánchez stated that the government will "abolish the granting of 'golden visas' that provide a residency permit when more than half a million euros are invested in real estate."

This measure, to be approved on Tuesday in the Council of Ministers, aims to put an end to these "speculative investments" affecting "many young people and families" who currently cannot access housing, he emphasized.

This type of visa allows non-European citizens to obtain a three-year residency and work permit, provided they invest at least 500,000 euros in a company or real estate in Spain.

"Today, 94% of golden visas are related to real estate investment" and not to an investment in a company, explained the prime minister, noting that they are also concentrated in "major cities such as Barcelona, Madrid, Malaga, Alicante, the Balearic Islands, and the city of Valencia," where "the housing market is very tense."

Some European countries like Portugal and Greece, which resorted to similar programs to attract investments during the financial crisis, have decided in recent months to end or tighten the rules governing this regime of exception, which has been controversially criticized by the European Union.