Spain has made a decisive move in its immigration policy, signalling an end to one of the most prominent avenues for wealthy foreign nationals to obtain residency

President Pedro Sanchez confirmed the cessation of the real estate route within Spain's Golden Visa Program, a pathway that allowed individuals to secure residency by investing €500,000 or more in property.

President Sanchez emphasized the shift, framing it as a step towards ensuring housing as a fundamental right rather than a speculative endeavor. He announced that the Council of Ministers would examine a report aimed at modifying the law, initially approved by the Popular Party in 2013, which facilitated residency through property investment.

However, the specifics of alternative options for the Golden Visa Program remain unclear at this stage.

The Golden Visa Program, a hallmark of Spain's immigration policy since its introduction by the People’s Party Government of Mariano Rajoy during the financial crisis in 2013, has primarily attracted wealthy internationals through real estate investment. Prospective investors were required to purchase properties worth at least €500,000, encompassing residential, commercial, or land holdings. Cities such as Madrid, Málaga, Alicante, Palma, Valencia, and Barcelona have been focal points for such investments.

According to government estimates, approximately 6,200 golden visas were granted between the program's inception and 2022. Notably, Chinese and Russian nationals constituted a significant portion of beneficiaries, with 45% and 20% of visas issued to these respective nationalities.

Despite its economic contributions, the Golden Visa Program has faced criticism for alleged involvement in illicit activities, including corruption, money laundering, and tax evasion. Ernest Urtasun, the Minister of Culture, labeled Spanish Golden Visas as a "European shame," denouncing the practice of granting residence permits based solely on wealth.

The sentiments against the program were echoed by the Spanish left-wing political party, Más País, which advocated for the removal of the real estate investment option, citing its lack of tangible benefits for Spain.

Spain's decision to halt the real estate route within the Golden Visa Program aligns with similar actions taken by Portugal and Greece to address housing crises. Portugal recently approved the "More Housing" bill, abolishing the real estate investment option while retaining alternative pathways under its Residency by Investment Scheme. Meanwhile, Greece opted to raise the minimum investment for residency and impose restrictions on short-term rental properties acquired through its Golden Visa Program.

As Spain navigates this policy shift, attention now turns to the forthcoming measures that will shape the future landscape of its Golden Visa Program and immigration policy overall.

By fLEXI tEAM