Spain is closing the "golden visa" program to limit speculation in real estate.

MOLINYA: Young people walk past a real estate agency in Guernica, Spain, on January 18, 2022. REUTERS/Vincent West/File photo.

SPAIN

The Spanish government has announced plans to abandon the so-called "golden visa" program, which allows foreign investors to obtain residency by investing.500,000 eurosin real estate.

This change, which will be approved at the cabinet meeting on Tuesday, is aimed at enabling the government to combat "speculative investments" in real estate that make it difficult for many young people and families to access housing, he added.

The scheme was introduced inin 2013Against the backdrop of economic difficulties, when Spain sought to attract foreign capital, it offers investors from non-European Union countries a work permit and residence permit for three years in exchange for an investment of at least500,000 eurosApproximately542,000 US dollars) in real estate or a Spanish company.

“As of today”94 out of every 100 visas“This type is specifically related to real estate investments concentrated in large cities,” Sanchez noted, mentioning places such as:

• Barcelona
• Madrid
• Málaga
• Alicante in the south
• Valencia in the east
• Balearic Islands

He noted that there is "huge pressure on the housing market in these regions, making it almost impossible for local residents who work and pay taxes to find affordable housing."

In recent months, a number of Southern European countries that also launched similar programs during the financial crisis have tightened the rules or completely abandoned them to address their housing issues.February 2023Portugal has ended its golden visa program, which significantly fueled housing prices, and at the end of last monthGreeceI have tightened my requirements, increasing the necessary investment amount to800,000 euros.

Minister of CultureErnest UrtasunThe representative of the radical left party Sumar, which is part of the ruling coalition of socialists in Spain, condemned this practice, calling these visas a "European disgrace." "You cannot grant residency to anyone just because they are a millionaire," he stated.

Inin 2019Brussels has urged member states to regulate such schemes, pointing out that they mainly benefit wealthy Chinese and Russian investors, and warned of potential consequences such as corruption and money laundering.