Starting next year, Spain will no longer grant new residence permits in exchange for investments through the country’s Golden Visa Program.
According to a report from La Region, Spain’s Socialist Workers’ Party (PSOE) and its parliamentary partners took advantage of the processing of a law in the Justice Commission to end the Golden Visa Program, Monte OZ Travels reports.
Spain is among Europe’s most famous countries for those interested in acquiring residency, provided they invest in this country financially.
No More Real Estate Investment Option
Wealthy foreign nationals can acquire residency in Spain through various options offered through the Residency by Investment Program, known as the Golden Visa scheme.
The most sought-after option was the real estate investment option, which granted residency through this program in exchange for purchasing a property worth €500,000 or more.
However, the increased interest in this option contributed to the country’s housing crisis.
Therefore, in a bid to better manage the housing crisis, in April this year, the President of the Government, Pedro Sanchez, announced that the country would terminate this route.
Golden Visa and Golden Passport programs offering residency and citizenship have often been called by the EU to be terminated following allegations of them allowing irregular affairs such as money laundering and corruption.
Therefore, removing the real estate investment option from this scheme is not being considered enough. Previously, the coordinator of the Spanish branch of Transparency International, Eka Rostomashvili, said that abolishing this option does not mean that the problem will disappear.
To remain competitive – this is a serious problem in all EU Member States – we see a race to the bottom in terms of standards as countries compete to offer favourable conditions for investors.
Increase in Demand for the Golden Visa Program of Spain
Ending the real estate investment option from this scheme, in contrast, is leading to a surge in the number of applications.
According to a specialist in international mobility in Spain, Juan Carlos Lois, in August alone, Spain saw a surge that tripled compared to the figures from the same period last year.
Besides, according to him, during the entire month of August, Spain received requests for its Golden Visa Program every day.
