Spain is set to scrap its popular “golden visa” program, announced Prime Minister Pedro Sanchez. This program allowed foreign investors to gain residency by investing €500,000 in Spanish property.
The decision aims to tackle rising housing costs in major cities like Barcelona and Madrid. Sanchez stated they will “eliminate the program that grants residency in exchange for a property investment.” This move is expected to be approved by the cabinet and targets speculative investments that make it difficult for locals to find affordable housing.
Launched in 2013 to attract foreign investment during economic hardship, the program granted residency permits to non-EU citizens for investing at least €500,000 in property or businesses. However, Sanchez noted that most visas were tied to property investments, concentrated in major cities.
The Prime Minister highlighted the pressure this places on housing markets, making it challenging for residents to find affordable housing. Spain’s move is not unique. Several other southern European countries have reviewed similar programs due to rising housing costs.
Portugal ended its golden visa program in February 2023, citing inflated housing prices. Greece also tightened regulations, increasing investment requirements. Criticism of these programs has grown, with concerns that they prioritize wealth over other factors for residency permits.