The Spanish government decided to eliminate “Golden Visa”a mechanism that granted permits from Residence to foreigners that they invested at least € 500,000 in properties. The President Pedro Sánchez had anticipated the decision more than a year ago, but the measure It entered into force only this Thursdayafter a series of legal reforms promoted by the Spanish Executive.
This type of visa allowed citizens from outside the European Union to obtain residence in Spain by acquiring real estate greater than € 500,000 or through investments in bank deposits, public debt, actions, investment funds and business projects.
The initiative had been approved in 2013 under the management of the Popular Party and until 2023 more than 14,500 residence permits had been granted through this route, with a notable presence of entrepreneurs from China and Russia.
The decision of the Government of Spain
The Spanish government argument to repeal this regulation is that promoted speculation and increase of housing in cities such as Madrid and Barcelona. As stated from the Executive, these investments fostered “A speculative business” that hindered access to housing for local residents.
As reported, the real estate sector warned that the suppression of this visa could translate into an investment reduction without implying a decrease in housing prices.
For its part, leaders of the Sumar matchminority ally of the PSOE In the government, together with other leftist sectors, they considered that this measure is insufficient to solve “the black hole in the real estate market.”
In addition to the elimination of the “Golden Visa”, the new legislation establishes that owners who wish to allocate their real estate to tourist rentals must have the Approval of the neighborhood community.
The impact on homes
The Spanish government argues that the growth of the supply of housing dedicated to the Tourism activitymany of them without registering, was a key factor in the Increased rental price in the main cities of the country.
According to official data, in 2024 the price of housing in Spain experienced an increase in 8.4%the highest increase in 17 yearswhile rentals increased a 14%the biggest rise recorded since 2018.
The main actors in the real estate sector, such as promoters, builders and architectshave pointed out that Spain needs to get the market at least 220,000 New homes a year to deal with the housing crisis and stabilize prices.
Source: Ambito
