Spain: Government abolishes “golden visas” to curb real estate speculation

Hibapress

The Spanish government announced on Monday the abolition of “golden visas” granted to foreign nationals making an investment in real estate, to curb the speculation which affects many cities in the country.

The executive will “remove the granting of ‘golden visas’ allowing a residence permit to be obtained when more than half a million euros are invested in real estate”, indicated the head of government, Pedro Sánchez .

This measure, which will be approved on Tuesday by the Council of Ministers, is likely to put an end to these “speculative investments” from which “many young people and families” suffer, today unable to access housing, he said. He underlines.

This type of visa allows non-EU nationals to obtain a three-year residence and work permit, provided they invest at least 500,000 euros in a business or real estate in Spain.

“Golden visas” were introduced in 2013 with the aim of reviving investments in the country, in the midst of an economic slump caused by the financial and real estate crisis.

“Today, 94 golden visas out of 100 are linked to real estate investment” and not to an investment in a business, explained the head of government, noting that they are also concentrated in “large cities like Barcelona, Madrid, Malaga, Alicante, the Balearic Islands and the city of Valencia”, where “the housing market is very tight”.

Certain European countries such as Portugal and Greece, which had used similar programs to attract investments during the financial crisis, have decided in recent months to end or tighten the rules governing this exceptional regime contested by the European Union.