Spain’s recent decision to abolish the Golden Visa Program reflects its commitment to addressing the country’s housing crisis. Prime Minister Pedro Sánchez has highlighted the importance of ensuring housing is treated as a fundamental right rather than a vehicle for speculative investment. Speaking on the matter, Sánchez stated, “We will ensure housing is not a mere speculative business but a right.” This policy shift aligns with broader efforts to regulate Spain’s housing market and promote affordability for its residents.
The move to terminate the Golden Visa Program, which was announced in April 2024, represents a significant departure from a strategy that has been in place for over a decade. The program, launched in 2013, was designed to attract foreign investment by offering residency permits to non-EU nationals who made substantial investments, particularly in real estate. Over the years, it has become a key driver of economic growth, especially in the property sector.
The program’s impact on Spain’s economy has been notable. In the first ten months of 2024, 780 golden visas were granted, with each applicant investing an average of €657,204. This influx of foreign capital contributed significantly to the real estate market and bolstered other sectors. However, the government’s decision to end the program underscores its recognition of the negative side effects, particularly the role it has played in inflating property prices and exacerbating housing affordability challenges for ordinary citizens.
While the Golden Visa Program is being phased out, non-EU investors still have opportunities to secure residency through other channels. Alternatives to the golden visa may exist, and potential applicants are encouraged to seek advice from immigration specialists to explore their options.
For those still interested in applying under the current scheme, time is of the essence. Applications must be submitted before the program officially ends on April 3, 2025. To qualify, investments must meet the minimum requirement of €500,000 in eligible assets, such as real estate. Investors should act quickly to take advantage of this window while considering the long-term implications of the program’s termination.
The end of Spain’s Golden Visa Program signals a significant policy shift aimed at reducing speculation in the housing market and ensuring more affordable housing options for residents. While it represents a loss of an investment-driven pathway to residency, it also reflects the government’s dedication to prioritizing the well-being of its citizens and addressing pressing social issues.
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