The Spanish Government Ends “Golden Visa” Scheme
Image source: Getty Images
The Spanish government has begun the process of eliminating the so-called “golden visa” scheme.
Background
The “golden visa” scheme, initiated by the conservative government of Mariano Rajoy in 2013, aimed to attract foreign investment into the Spanish property sector following the eurozone crisis. The scheme allowed foreign investors to obtain residency in exchange for property purchases worth €500,000 or more.
Scheme Termination
The Spanish government has recently made the decision to end the “golden visa” scheme. This move, announced at a Cabinet meeting on Tuesday, marks a shift in policy with regard to promoting foreign investment. The visa, which had granted fast-tracked residency to thousands of foreign investors, will no longer be awarded.
Visa Statistics
Approximately 6,200 visas were issued until 2023 in exchange for property investment, as reported by Transparency International. This number may be higher, according to other sources. Chinese nationals constituted almost half of the “golden visa” beneficiaries, with 2,712 visas granted. Russians, Iranians, and citizens of the US and the UK made up the remaining recipients.
Decision Rationale
Prime Minister Pedro Sánchez emphasized the government’s focus on ensuring access to affordable housing rather than allowing business speculation. Sánchez explained that the majority of visas were associated with property purchases in major cities such as Madrid, Barcelona, Valencia, Málaga, Alicante, and the Balearic Islands. These areas experience significant housing market pressures, making affordable housing scarce for those who live, work, and pay taxes there.
Critics and Opposition
Critics argue that the visa scheme’s termination will not address the core housing problem in Spain. They contend that the issue stems from a lack of housing supply and rapidly increasing demand, rather than the “golden visa” itself. Francisco Iñareta from the Idealista property portal highlights this concern.
European Context
Foreign pressure, especially from the European Commission, to limit such visa schemes motivated the Spanish government’s decision. These pressures primarily arise from security concerns, especially following Russia’s invasion of Ukraine. Several European countries, including the UK, Ireland, and Portugal, have already discontinued or revised their “golden visa” programs.
