Spain terminates the real estate pathway for its Golden Visa Program.

Spain terminates the real estate pathway for its Golden Visa Program.

Summary:

1. Spain has opted to eliminate the real estate pathway from its Golden Visa Program.
2. This pathway permits affluent foreign individuals to attain residency by investing in property valued at €500,000 or higher.
3. President Pedro Sanchez affirmed the decision, highlighting the imperative of guaranteeing housing as a fundamental right rather than merely a speculative endeavor.

Obtaining residency in Spain via the Golden Visa Program through the purchase of property valued at €500,000 or above will no longer be available to affluent foreign nationals, as the country has opted to discontinue this avenue. President Pedro Sanchez has affirmed this decision, emphasizing Spain's commitment to ensuring housing as a fundamental right rather than merely a speculative endeavor.

President Sanchez has announced that the Council of Ministers will review a report submitted by the Minister of Housing and Urban Agenda to amend the law enacted by the Popular Party in 2013, which currently allows for residency visas through property investment in the country. However, it remains uncertain whether alternative options will be maintained.

Real estate investment has been one of the most prominent routes for obtaining the Golden Visa in Spain. To qualify, wealthy individuals are required to invest in real estate valued at a minimum of €500,000, encompassing commercial, residential, or land properties. Cities such as Madrid, Málaga, Alicante, Palma, Valencia, and Barcelona are particularly sought after for such investments.

The Golden Visa Program was introduced by the People's Party Government in 2013 amid Spain's financial crisis to stimulate economic growth. Until 2022, an estimated total of 6,200 golden visas were granted, with the majority awarded to Russian and Chinese nationals. Despite their financial contributions, the program has faced criticism for its alleged involvement in illicit activities such as corruption, money laundering, and tax evasion.

Calls to terminate the Golden Visa Program have been voiced, with Minister of Culture Ernest Urtasun describing Spanish Golden Visas as a "European shame," arguing against the granting of residence permits solely based on wealth. The left-wing political party, Más País, introduced a bill last year to abolish the real estate investment option from the Golden Visa Program, citing its lack of benefit to Spain.

Following in the footsteps of Portugal and Greece, Spain's decision to discontinue the real estate investment option aims to address housing crises. Portugal has already removed this option from its Golden Visa scheme, while Greece has increased the minimum investment for its Residency by Investment Scheme (RIP) and imposed restrictions on short-term rental properties acquired through the Golden Visa Program.

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