The Spanish government announced the cancellation of the “golden visa” program, which granted the right of residence to foreigners who make large investments in the country’s real estate.
The Prime Minister of the country, Pedro Sanchez, announced this to journalists on Monday, writes Reuters.
Spanish Prime Minister Pedro Sánchez said the decision would help make affordable housing “a right, not a speculative business.”
The “golden visa” program has been in effect since 2013 and has given citizens of non-EU countries the opportunity to obtain a permit to live and work in Spain for three years, provided they invest at least 500,000 euros in real estate.
According to the government, from the start of the program until November 2022, Spain has issued almost 5,000 “golden visas”. Most of them (94%) were obtained for investments in real estate in large cities, where there is a high level of demand for housing.
Sanchez emphasized that canceling the program will help solve the problem of the lack of affordable housing in these cities.
The process of eliminating the “golden visa” program will begin at the next meeting of the Cabinet of Ministers of Spain.
The abolition of “golden visas” in Spain follows similar steps taken by Portugal and Ireland.
Experts believe that this decision may have a negative impact on the Spanish real estate market, which has relied heavily on foreign investment in recent years.
