Spain to End ’Golden Visa’ Program for Foreign Investors

This measure is among the amendments made by the parliamentary group of the Spanish Socialist Party (PSOE) to the law on judicial efficiency, approved on Thursday by the Congress with 179 votes in favor, 169 against and 0 abstentions. This amendment repeals articles 63, 64, 65, 66 and 67 that governed the granting of golden visas for the acquisition of real estate and investments in bank deposits, public debt, shares, investment funds and projects of general business interest in Spain, reports El Pais.

Pending the entry into force of the new text, foreigners can continue to apply for this type of visa. "Investors or relatives of investors who have submitted the corresponding application may receive the corresponding visa or authorization in accordance with the regulations in force at the date of submission of the application," it is specified. A situation that could lead to an increase in applications for this visa. "94 out of 100 visas of this type are related to real estate investment," declared President Pedro Sanchez in April.

According to data provided in April by the Minister of Housing and Urban Agenda, Isabel Rodríguez, 14,576 golden visas linked to real estate investments have been granted since 2013 to Moroccan, Chinese, Russian, British, American, Ukrainian, Iranian, Venezuelan and Mexican nationals. The provinces of Barcelona, Madrid, Malaga, Alicante, the Balearic Islands and Valencia absorb 90% of these foreign investments across the national territory, the minister specified.

The official also indicated that the purchase of housing by foreigners has increased considerably in the last quarters of 2023. This type of investment "puts a lot of pressure on the market, increases the price of houses and promotes speculation," she noted, stating that the government’s objective in abolishing these golden visas is to put an end to "the speculation that has increased very significantly" since 2022, the year in which the number of golden visas granted doubled.