Spain is ending its golden visa program.

The initiative has attracted thousands of foreign investors since 2013, most of whom have purchased real estate in Spain. Spain plans to abolish its so-called "golden visa" program, which grants temporary residency rights to property buyers from outside the European Union, as Madrid seeks to increase the availability of housing for local residents. Prime Minister Pedro Sánchez told reporters on Monday that his cabinet would take the first steps this week to abolish the program.

Golden visas were introduced in 2013 and allowed citizens from non-EU countries who spent at least 500,000 euros ($543,000) on real estate to obtain the right to live and work in Spain for three years.

“Today, 94 out of every 100 such visas are related to investments in real estate in major cities that are facing a tight market, where it is almost impossible to find decent housing for those who already live, work, and pay taxes there,” noted Sanchez.

According to government data, since the start of the program, Spain has issued nearly 5,000 golden visa permits up to November 2022. According to the 2023 report by Transparency International, cited by Reuters, Chinese investors lead the list, followed by Russians, who have invested over 3.4 billion euros.

Supporters of the cancellation of the golden visa program insisted that it led to a rapid increase in housing prices. Many economists, however, pointed out that the problems with housing in Spain were not caused by the golden visa program, but rather a lack of supply and a surge in demand.

"The measure adopted today, which focuses on international buyers rather than encouraging the influx of new housing onto the market, is yet another misdiagnosis."