Spain has announced plans to end its “golden visa” program, which grants residency to foreign real estate investors. Prime Minister Pedro Sanchez announced that their Spanish Golden Visa ownership option will expire this year, framing the decision as more about providing affordable housing to residents than maintaining a speculative market.
Is Spain Ending the Golden Visa Program?
Just like Portugal, which ended its real estate selection under the very popular Golden Visa program, and Greece, which announced additional prices in its current program, Spain is the latest country to blame its Golden Visa program for the housing explosion rate revealing that 94% of the hundred visas issued under the program are related to real estate.
This concentration is said to have increased market stress in major urban centers, where housing affordability has become a more pressing issue for those who already live, work, and pay taxes in those areas.
History of the Spanish Golden Visa
Since its inception in 2013, the “Golden Visa” program has granted nearly 5,000 permits, according to the government. Mainly, Chinese investors are at the top of the list of beneficiaries, closely followed by the Russians, who together have invested billions of euros in Spanish real estate.
However, a report by Transparency International (2023) raised questions about the origins of these funds and highlighted the need for closer oversight.
Counter argument
Only some people are convinced that Spain’s Golden Visa End will have a positive impact on the housing crisis. One could argue that Spain’s housing problems are due to a lack of supply and an increase in demand, rather than the “golden visa” program itself. Many industry players have criticised the government’s decision, suggesting that targeting international buyers without addressing the underlying problems in the housing market is a misdiagnosis.
What to Expect?
Despite the news, it is important to emphasise that the program is still open to investors and no official decision or deadline has been set yet. However you should act quick to get in under the current rules. Following the latest trends in European Golden Visa programs such as Portugal and Greece, we expect investors to have a transition period to complete ongoing applications.
Now it is important to start applying for a Spanish Golden Visa according to the current regulations.