Prime Minister Pedro Sanchez wants to make housing more affordable. The “Golden Visa” program, which grants residency rights to foreigners who make large investments, is to be abolished.
After criticism, the Spanish government wants to abolish special visas for wealthy property buyers. The “golden visa” program, which grants residency rights to foreigners who make large investments in real estate in the country, should be ended, Prime Minister Pedro Sanchez said on Monday. The abolition of the program should help make access to affordable housing “a right” and end some speculation in real estate.
The program grants non-EU citizens who invest at least 500,000 euros in Spanish property – without taking out a mortgage – a special permit allowing them to live and work in the country for three years. The government plans to begin the process of abolishing the scheme at Tuesday’s weekly cabinet meeting after reviewing a report submitted by the housing ministry, Sanchez added. Since the start of the special visa regime in 2013 until November 2022, Spain has issued almost 5,000 permits, according to government figures.
Chinese lead ahead of Russians
According to a report by Transparency International, Chinese investors topped the list, followed by Russians, who invested more than 3.4 billion euros. Experts say the proposed measure is unlikely to have an impact on the property market, as less than 0.1 percent of the 4.5 million homes sold during the period were purchased under the scheme, according to real estate website Idealista.
Spain’s housing problem was not caused by the Golden Visa, but rather by a lack of supply and an increase in demand, said Idealista spokesman Francisco Inareta. The European Commission has long called for such programs to be scrapped, citing security risks. Portugal recently ended its special visas for home buyers. (APA/Reuters)
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2024-04-08 19:53:04
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