The Aryavarth Express
Agency(New Delhi): Spain has announced its intention to discontinue the golden visa program, which has been in place since 2013. This program allows non-European Union citizens who invest at least €500,000 ($543,000) in real estate to secure residency rights. Spanish Prime Minister Pedro Sanchez stated that the program’s termination is part of efforts to make affordable housing more accessible to residents and reduce speculative real estate purchases.
Sanchez highlighted that the vast majority of these visas, 94 out of every 100, are linked to property investments in major cities where housing markets are particularly tight. The move aims to prioritize the housing needs of local taxpayers over the interests of international investors.
Since its inception, the program has issued nearly 5,000 visas, predominantly to Chinese and Russian nationals who collectively invested over €3.4 billion. Critics of the program argue that it has contributed to rising housing prices in Spain’s urban areas.
Conversely, some experts and property analysts, including representatives from the website Idealista, argue that the real issue with Spain’s housing market is not the golden visa scheme but a fundamental imbalance between supply and demand. They criticize the government’s focus on curbing international investment instead of increasing housing supply.
Spain’s decision follows similar moves by Portugal and Ireland, which also ended their golden visa programs in 2023. These changes reflect a broader trend within the EU, driven by concerns from the European Commission about the security risks and potential for corruption associated with such schemes.