Spain is poised to abolish its Golden Visa Program entirely, following concerns that the current measures, such as removing the real estate investment option, are insufficient. Prime Minister Pedro Sanchez’s Socialist Party (PSOE) has proposed an amendment to the Residency by Investment Program, seeking to eliminate all avenues for acquiring residency through financial investment, as reported by Schengen.News.
The proposal arises from findings that nearly all golden visas were granted through real estate investments, raising worries about applicants from countries like Russia potentially seeking residency through other investment forms. These concerns stem from the ongoing impact on housing prices, which the government aims to address.
Krista Victorio, Managing Partner and Client Services of Orience explained to Imi Daily that the PSOE’s proposal is an amendment to the Organic Law Project. Although it is not directly linked to Law 14/2013 of September 27 (the law that initiated the program), the proposal seeks to leverage an existing law project to indirectly affect the golden visa.
The proposed changes would eliminate all routes to obtaining a golden visa, including investments in business projects. Victorio noted that the proposal is currently in the article amendment phase, which will be open until September 4, with the legislative process set to begin no earlier than September 9.
Background and Context
Spain’s Golden Visa Program, introduced in 2013, allowed international investors to obtain residency in exchange for financial investments that met specific conditions. Since its inception, more than 15,000 wealthy internationals have acquired residency in Spain, primarily through purchasing properties worth at least €500,000.
Real estate investment has been the most popular route for obtaining residency under the program. However, to address the housing crisis, the Spanish government announced in April that purchasing property worth €500,000 would no longer qualify for residency.
President Pedro Sanchez confirmed the elimination of the real estate investment option from the Residency by Investment Program, emphasizing that housing should be a right and not “a mere speculative business.” He stated, “I want to announce that tomorrow’s Council of Ministers is going to study a report submitted by the Minister of Housing and Urban Agenda to modify the law, approved by the Popular Party in 2013, which allows obtaining a residence visa if you invest in housing in our country.”
EU Commission’s Stance
The European Union Commission has consistently urged EU member states to terminate their Golden Visa Programs, citing allegations of irregularities associated with these schemes. The Spanish government’s proposal aligns with this broader EU initiative to ensure that residency programs are not exploited for speculative purposes.
Looking Ahead
The proposed amendment represents a significant shift in Spain’s approach to residency by investment. If passed, it will close all avenues for acquiring residency through financial investments, marking a definitive end to the Golden Visa Program. The legislative process will determine the final outcome, with discussions set to begin in September.
The move underscores Spain’s commitment to addressing housing affordability and ensuring that residency programs are not used to inflate property prices. As the government continues to prioritize housing as a fundamental right, the potential abolition of the Golden Visa Program marks a pivotal moment in Spain’s economic and social policy.
