The Congress of Deputies in Spain approved, on November 14, 2024, the bill to end real estate investment options from the Golden Visa Program.
The decision comes following the amendments passed under the Law for the Efficiency of Justice and approved in the Plenary Session of Congress, Schengen.News reports.
According to local media reports, the real estate investment route may be abolished from the Residency by Investment Program in January 2025.
However, the bill is yet to be submitted to the Senate for amendments, and then it will be addressed to Congress for final approval before being officially abolished from the program.
Ending Real Estate Investment Option
The Golden Visa Program of Spain offers a pathway to residency for nationals from countries located outside the EU. In order to acquire residency, they are required to invest financially in this country.
Wealthy foreign nationals can choose several options that the Spanish Golden Visa Program offers, including investing through real estate options, business development and capital transfer.
The most sought-after option of this scheme has been considered the option of investing in real estate. This option permitted internationals to acquire residency by purchasing a property worth €500,000 or more and meeting several other conditions.
Earlier this year, the Prime Minister of Spain, Pedro Sanchez, said that 94 per cent of approved visas came from investments made through real estate in territories where the housing market, according to him, is “stressed,” such as Madrid, Barcelona, Malaga, and Valencia.
As a result, in April of this year, Sanchez announced plans to discontinue this route, which has been considered to be contributing to the housing crisis that Spain has been dealing with.
Announcing the decision, the President of the Spanish Government, Pedro Sanchez, said that the country would take all the necessary measures to ensure that housing is a right and not a mere speculative business.
Golden Visa Program Contributing Significantly to Spain’s Economy
The Golden Visa Program of Spain makes a significant contribution to Spain’s economy, particularly its real estate investment option.
In 2022 alone, Spain granted a total of 2,462 golden visas to those who chose the real estate investment option, with a value of €500,000 or more, accounting for an increase of 60 per cent compared to 2021 statistics.
Since the introduction of this program in 2013, Spain has issued golden visas to 11,464 individuals.
Source: https://schengen.news/spains-congress-approves-bill-to-cancel-golden-visa-program-in-january-2025/
