Spain abolishes ‘Golden Visa’ to protect housing rights

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Golden Visa

 

Spanish Prime Minister Pedro Sánchez has announced that the government will put an end to the so-called Golden Visa, a scheme that allows foreign investors to obtain a residence permit by investing more than half a million euros in real estate.

This measure was introduced in 2013 by the Partido Popular to stimulate the Spanish economy. With an investment of €500,000 or more, non-EU residents can obtain a Golden Visa or a temporary residence permit. With the revision, the government wants to ensure that living in Spain is a right and not an object of speculation.

Change of law

During a press conference after his visit to a sheltered housing project in Dos Hermanas (Seville), Sánchez explained. “We will take the necessary steps to ensure that housing is a right and not a purely speculative endeavour.” The Prime Minister added that the Cabinet would study a report the next day to change the law that makes the Golden Visa possible. This report was submitted by the Minister of Housing and Urban Agenda.

Impact on the housing market

According to the government, about 94% of investment visas are related to real estate, with almost 10,000 permits issued. The demand for this type of visa is highest in cities such as Barcelona, Madrid, Málaga, Alicante, Palma and Valencia. It is precisely these cities that are also experiencing the greatest housing shortage. “It is almost impossible to find decent housing in these areas,” Sánchez added.

Cogesa Expats

Also read: Golden visa issued mostly in these cities

Priority for affordable housing

The Sánchez government emphasises the need to guarantee access to affordable housing. “Our priority is to ensure that no citizen has to spend more than 30% of their income on a decent, suitable and quality home,” Sánchez stated. He emphasised the social function of housing. He also pointed out the government’s commitment to combating speculative investments in the housing market.

A country for productive investments

Sánchez emphasised that Spain wants to focus on productive investments that generate innovation and quality jobs. “We do want to roll out a red carpet for those who come to Spain to create jobs, invest in innovation or stimulate our productive fabric. But not for those who only want to speculate on a basic need such as housing,” the Prime Minister concluded. With this step, the Spanish government hopes to put an end to speculative investments that contribute to the housing crisis and inequality in the country.

Also read: Dire shortage of affordable rental housing in Spain

Baycrest Wealth

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