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Spain plans to scrap Golden visa scheme

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Golden visas allow foreign nationals to buy residency status in the country, but that could soon be history

President of the government of Spain, Pedro Sánchez, has announced his intention to get rid of the country’s so-called ‘Golden visa’ program, which grants residency to foreigners, including British citizens, if they make substantial investments in the country or buy high-end property.

Mr. Sánchez, who heads the county’s ruling Socialist party, stated today, Monday April 8, that discontinuing the scheme aims to prioritise housing accessibility as a fundamental right rather than a speculative venture.

“Housing is a constitutional right and not a mere speculative business,” he wrote on his X feed. “That is why we are going to eliminate the ‘Golden Visa’, the law passed by the PP [conservative party] that allows people to obtain a residence visa if they invest more than 500,000 euros in housing in our country.”

He went on to explain that “having decent housing cannot depend only on the rules of the market” and promised that his “will be the legislature that turns housing into the fifth pillar of the welfare state”.

Under the Golden visa scheme, which was introduced in Spain in 2013, non-EU investors who purchase property in Spain for at least 500,000 euros, without the need to take out a mortgage, are granted a special permit for residency and employment for three years.

Other ways of securing the visa include investing in Spanish businesses, but by far the most popular way is through property purchases.

Highlighting the disproportionate concentration of these visas in major cities such as Barcelona, Madrid, Málaga, Alicante, Valencia, and Palma de Mallorca, where housing shortages are acute, Mr. Sánchez underscored the fact that 94 out of every 100 visas are linked to real estate investments.

The government plans to initiate the process of abolishing the scheme following a review by the Housing Ministry, with formal action expected after the weekly cabinet meeting this Tuesday.

Also of interest: Types of visas for living in Spain

Since Brexit, many British nationals have pursued golden visas due to their relative ease compared to alternative migration routes to Spain. The termination of Spain’s golden visa program could pose challenges for Britons seeking permanent residency in the country.

However, most of the people who have benefit from the Golden visa scheme in Spain over the last 11 years have been investors from China and Russia. Around 6,000 of these visas have been granted since it was introduced, 2,700 of which have gone to Chinese nationals and 1,100 of which were for Russians. That’s around 64% of the total.

When the war in Ukraine broke out, Spain decided to limit its Golden visa program for Russians, meaning that in 2022 around half the usual number of Golden visas were issued.

It remains unclear whether the restrictions will solely target major cities or extend to rural areas unaffected by housing pressures.

In contrast, neighbouring Portugal recently overhauled its own Golden visa program, eliminating real estate investments to address housing crises while still offering residency through investment funds.

The European Commission has consistently advocated for the cessation of such schemes, citing security concerns.

There have been calls to remove the Golden visa before in Spain on the grounds that it allows criminals to launder their money while effectively buying themselves a European passport, while others have stated that the limit should be higher than 500,000 euros.

Image: Pedro Sánchez

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