Key Takeaways
- Spain plans to eliminate the real estate investment option from its Golden Visa program starting January 2025, citing housing market pressures.
- The program has significantly boosted the economy, with 94% of visas issued through real estate investments.
- The decision aims to protect housing as a basic right rather than a speculative asset.
Key Changes
On November 14, 2024, Spain’s Congress of Deputies approved a bill to cancel the real estate investment option under the Golden Visa program. The change is expected to take effect in January 2025, pending Senate review and final approval.
Launched in 2013, this program allowed foreign nationals to obtain residency by investing in Spain. The most popular route involved purchasing property worth €500,000 or more. However, the government argues that this option has exacerbated the housing crisis, particularly in cities like Madrid and Barcelona.
Government’s Rationale
Prime Minister Pedro Sanchez explained that the program has driven up housing prices in “stressed” regions. Consequently, the government decided to take action to ensure that housing remains a basic right for citizens rather than a speculative business.
Economic Impact of the Program
The Golden Visa program has contributed significantly to Spain’s economy. In 2022 alone, 2,462 visas were issued under the real estate investment route, marking a 60% increase compared to 2021. Since its inception, the program has granted over 11,464 visas.
Despite its economic benefits, the decision to remove the real estate option reflects the government’s commitment to balancing economic growth with social priorities.
