Spain's cabinet has approved measures to scrap the golden visa scheme, which was introduced in 2013 following the collapse of the housing market and the euro crisis, to revive the sector and provide residency rights to wealthy foreigners who have invested in property. But critics argue that the scheme creates inflationary pressure and serves as a conduit for dirty money to enter the economy. This prompted Pedro Sanchez's government to announce in October that the scheme would be phased out. Close advertising “We are going to initiate a procedure to cancel the so-called “golden visa”, which allows access to resident status if more than half a million euros are invested in real estate. We are going to take the necessary measures to ensure that housing is a right and not just a speculative business " Sanchez said at a press conference on April 8.
The abolition of the scheme is unlikely to have much impact on the property market. According to realtors, less than 0.1% of the more than four million homes sold in the last ten years were purchased under this regime.
Housing Minister Isabel Rodriguez said more than 14,000 such permits were issued between 2013 and 2023, mostly to Chinese and Russian citizens. Among those who dream of a home under the Spanish sun are also citizens of the UK, USA, Iran and Venezuela.
Neighboring Portugal recently overhauled its golden visa scheme to exclude property investment in a bid to address its housing crisis.
The European Commission has long called for an end to such visa schemes, citing security risks and arguing that citizenship is granted without any real obligation for the recipient to live in the country.