Spain: Government abolishes "golden visas" to curb real estate speculation

Hibapress

The Spanish government announced on Monday the abolition of “golden visas” granted to foreign nationals who invest in real estate, in order to curb the speculation affecting many of the country’s cities.

The executive power will “abolish the granting of ‘golden visas’, which enable obtaining a residence permit when more than half a million euros are invested in real estate,” Prime Minister Pedro Sanchez indicated.

This measure, which will be approved by the Council of Ministers on Tuesday, is likely to put an end to these “speculative investments” from which “many young people and families” suffer, who today do not have access to housing.

This type of visa allows non-EU nationals to obtain a three-year residence and work permit, provided they invest at least €500,000 in business or real estate in Spain.

“Golden visas” were introduced in 2013 with the aim of reviving investments in the country, in the wake of the financial and real estate economic downturn.

“Today, 94 golden visas out of 100 are related to investment in real estate”, and not to investment in business, explained the head of government, noting that they are also concentrated in “big cities like Barcelona, Madrid, Malaga, Alicante, the Balearic Islands and the city of Valencia “, where “the real estate market is very tight”.

Certain European countries such as Portugal and Greece, which used similar programs to attract investment during the financial crisis, have decided in recent months to abolish or tighten the rules governing this exceptional regime contested by the European Union.