Spain Scraps ‘Golden Visa’ Scheme to Combat Property Speculation

Spain is set to abolish its “golden visa” program, wherein foreign investors gain residency by investing €500,000 in property, in a bid to tackle the rampant speculation plaguing many Spanish cities, announced Prime Minister Pedro Sanchez on Monday.

During a visit near Seville, Sanchez stated, “We are going to eliminate the so-called golden visa scheme that grants residency in exchange for a €500,000 property investment.” This decision, slated for approval at Tuesday’s cabinet meeting, aims to combat “speculative investment” in real estate, which hinders access to housing for “many young people and families,” he added.

Introduced in 2013 amid economic struggles to attract foreign capital, the scheme offers non-EU investors a three-year work and residency permit upon investing at least €500,000 in property or a Spanish company.

Sanchez highlighted that “currently, 94% of these visas are tied to property investments, mostly concentrated in major cities such as Barcelona, Madrid, Malaga, Alicante, Valencia, and the Balearic Islands.” This concentration exacerbates housing market tensions, making it exceedingly difficult for residents to find suitable housing, he emphasized.

Following suit with other Southern European nations, Spain’s move comes in response to tightening regulations or discontinuing similar programs to alleviate housing crises. Portugal ended its golden visa program in February 2023, while Greece recently raised the required investment to €800,000.

Culture Minister Ernest Urtasun, also the spokesperson for the left-wing Sumar party within Spain’s ruling coalition, criticized such visas as “a European disgrace,” highlighting concerns that they primarily benefit wealthy Chinese and Russian investors and may facilitate corruption and money laundering, echoing calls from Brussels in 2019 for member states to crack down on such schemes.