Spain will put an end to “golden visas» that are granted to foreigners who invest in real estate, in order to stop the speculation that affects many cities in the country, Prime Minister Pedro Sanchez announced today.
“The government will abolish the granting of the so-called ‘golden visa’ with which one gets a residence permit when investing in real estate over half a million euros,” Sanchez said on a visit he made near Seville.
“The repeal of the measure will be ratified by the cabinet tomorrow and will make it possible to fight against the speculative investments that are affecting many young people and families as they are unable to find accommodation,” continued the Spanish Prime Minister.
The housing crisis is sweeping
The golden visa enables non-Europeans to obtain a three-year residence and work permit if they invest at least 500,000 euros in a company or real estate in Spain. The measure was introduced in 2013 by the conservative government of Mariano Rajoy, who at the time wanted to boost investment amid economic languor due to the financial crisis and property bubble.
“Today, 94 out of 100 golden visas are linked to investment in real estate, not companies,” Sanchez explained. These investments are concentrated in large cities, such as Barcelona, Madrid, Malaga, Alicante, Valencia and the Balearic Islands, where the real estate market is under a lot of pressure, he added.
Many southern European countries, which had adopted similar measures during the financial crisis, are now deciding to abolish them. Portugal stopped issuing “golden visas” in early 2023 when property prices soared.
“Golden visas are a disgrace to Europe. It is unacceptable to give someone a residence permit simply because they are a multi-millionaire,” Ernest Urtasun, the culture minister and spokesman for the far-left Sumar party, the Socialists’ ally in government, said today.
Brussels had raised concerns in 2019 about this practice, which mainly benefited wealthy Chinese and Russians, saying it posed a risk to the EU, “in particular for security, money laundering and tax evasion”.
Source: RES-MPE
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