Spain Ends Golden Visa Program Amid Housing Crisis
The Spanish government terminates residency permits for foreign property investors as part of new housing policies.
On April 3, 2024, Spain officially discontinued the issuance of residency permits, commonly known as 'golden visas,' which were granted to non-EU foreigners who purchased real estate valued at a minimum of €500,000.
This program commenced in 2014, established during the economic downturn following the Great Recession, and has now ceased amidst a burgeoning housing affordability crisis.
The golden visa scheme was integrated into a law aimed at supporting entrepreneurs, enacted by the People's Party (PP) government in 2013, and became operational the following year.
It allowed residency permits for foreign investors spending at least €500,000 on property while excluding mortgages or other encumbrances.
Alternate investment options included commitments of €2 million or more in Spanish public debt, €1 million in shares of Spanish capital companies with actual business activities, or €1 million in established investment funds within Spain.
The program was initially justified by the government as a means to enhance business activity and facilitate international investment in Spain, promoting increased mobility for investors.
However, the current Socialist government believes that the golden visa program has exacerbated tensions in the housing market in specific regions of Spain.
Minister of Housing Isabel Rodríguez stated that abolishing the golden visa for real estate aims to create opportunities for individuals facing challenges in securing housing in high-demand areas plagued by rising prices and a shortage of residential offerings.
The abolition of the program was approved by the Congress of Deputies on November 14, 2023, through a legislative amendment proposed by the Socialist Parliamentary Group.
This amendment to the Organic Law on the efficiency of justice garnered 179 votes in favor, 169 against, and no abstentions.
It received support from the governing parties (PSOE and Sumar) and their investment partners, including right-wing groups Junts and PNV, while the opposition parties, PP and Vox, voted against the measure.
Individuals who have previously obtained golden visas will not lose their residency status.
The newly enacted regulations specify that those investors or their relatives who submitted applications before the enactment of this transitional provision may still receive the relevant visa or authorization according to the regulations in effect at the time of their application.
As of 2023, Spain had issued a total of 22,430 golden visas, according to data from the Permanent Immigration Observatory of the Ministry of Inclusion, Social Security, and Migrations.
The distribution of these permits increased notably following the COVID-19 pandemic.
Notably, 93% of all golden visas have been concentrated in seven provinces: Barcelona, Madrid, Málaga, Alicante, the Balearic Islands, Girona, and Valencia.
Among those who received a golden visa, 75% of the approvals were equally divided between citizens from Asian countries (primarily China) and non-EU European nationals (notably from Russia, Ukraine, and the United Kingdom following Brexit).
This program commenced in 2014, established during the economic downturn following the Great Recession, and has now ceased amidst a burgeoning housing affordability crisis.
The golden visa scheme was integrated into a law aimed at supporting entrepreneurs, enacted by the People's Party (PP) government in 2013, and became operational the following year.
It allowed residency permits for foreign investors spending at least €500,000 on property while excluding mortgages or other encumbrances.
Alternate investment options included commitments of €2 million or more in Spanish public debt, €1 million in shares of Spanish capital companies with actual business activities, or €1 million in established investment funds within Spain.
The program was initially justified by the government as a means to enhance business activity and facilitate international investment in Spain, promoting increased mobility for investors.
However, the current Socialist government believes that the golden visa program has exacerbated tensions in the housing market in specific regions of Spain.
Minister of Housing Isabel Rodríguez stated that abolishing the golden visa for real estate aims to create opportunities for individuals facing challenges in securing housing in high-demand areas plagued by rising prices and a shortage of residential offerings.
The abolition of the program was approved by the Congress of Deputies on November 14, 2023, through a legislative amendment proposed by the Socialist Parliamentary Group.
This amendment to the Organic Law on the efficiency of justice garnered 179 votes in favor, 169 against, and no abstentions.
It received support from the governing parties (PSOE and Sumar) and their investment partners, including right-wing groups Junts and PNV, while the opposition parties, PP and Vox, voted against the measure.
Individuals who have previously obtained golden visas will not lose their residency status.
The newly enacted regulations specify that those investors or their relatives who submitted applications before the enactment of this transitional provision may still receive the relevant visa or authorization according to the regulations in effect at the time of their application.
As of 2023, Spain had issued a total of 22,430 golden visas, according to data from the Permanent Immigration Observatory of the Ministry of Inclusion, Social Security, and Migrations.
The distribution of these permits increased notably following the COVID-19 pandemic.
Notably, 93% of all golden visas have been concentrated in seven provinces: Barcelona, Madrid, Málaga, Alicante, the Balearic Islands, Girona, and Valencia.
Among those who received a golden visa, 75% of the approvals were equally divided between citizens from Asian countries (primarily China) and non-EU European nationals (notably from Russia, Ukraine, and the United Kingdom following Brexit).
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