Spain’s Congress of Representatives has approved the abolition of the Golden Visa scheme through a modification to the Judicial Effectiveness Law, a move that fulfills a pledge made months ago by the Sánchez Government to prioritize citizens’ access to affordable housing by stabilizing the market and reducing real estate speculation.
The Spanish Golden Visa program ran since 2013 and granted residency to foreigners who invested at least €500,000 in real estate, or partook in other investments, namely:
- €2 million or more in Spanish public debt securities
- €1 million in shares of Spanish companies
- €1 million in closed-end or venture capital funds based in Spain
Prime Minister Sánchez recently highlighted that “94% of these visas are connected to real estate investments,” especially in urban areas with strained housing markets, where securing adequate housing is already challenging for locals. Housing Minister Isabel Rodríguez shared that since 2013, 14,576 Golden Visas were issued for real estate investments, and most recipients were from China, Russia, the UK, the US, Ukraine, Iran, Venezuela, and Mexico.
Key provinces where properties were bought for residence permits include Barcelona, Madrid, Málaga, Alicante, the Balearic Islands, and Valencia. Specifically, Barcelona saw a rise in property purchases by foreigners of 5.3%, an uptick that further disrupted the already strained housing market.
However, the Spanish senate has taken transitional measures to ensure that all Visa requests submitted before the law is finalized, will still be reviewed under existing criteria.
