Changes To Golden Visa Regulations Under Review By Spanish Government
Spain News
Published: 09 May 2023 15:34 CET
Spain's Golden Visa Program has come under scrutiny recently, as the left-wing Mas Pais party has proposed terminating the program to the government. This proposal has put the government in a difficult position, as the scheme has been a valuable source of investment and has attracted thousands of wealthy non-EU investors to Spain.
The Golden Visa Program was launched in 2013 to stimulate the country's economy by granting residency to applicants who meet the necessary requirements and make significant investments.
The program, which allows buyers of property worth at least 500,000 euros (434,998 pounds) and their families to get a three-year residency permit, also offers visa-free access to the Schengen Zone and a path to permanent residency, among other benefits. Since its launch, the program has issued nearly 5,000 permits, with Chinese investors benefiting the most from the scheme (45 percent of the total).
According to a report by El Pais, the Spanish government is considering either increasing the minimum amount of investment required for the Golden Visa Program or abolishing the scheme altogether. The Mas Pais party argues that the scheme does not bring any benefits to the country and encourages speculation in housing prices, leading to the displacement of local populations.
The Mas Pais party submitted a bill to Congress in February to abolish the Residency by Investment scheme. The party's leader, Ingio Errejon, has called out the program, stating that it does not bring benefit to the national economy and expels the local population. Errejon argued that “Spanish citizenship cannot be bought” and that the scheme has led to a "brutal" surge in housing prices, pushing locals out of their neighbourhoods without creating any new jobs.
Errejon noted that investing in businesses in Spain, which later contribute to the growth of the country's economy, is different from investing in real estate. The leader of the Mas Pais party also highlighted the government's lack of investigation into the sources of funding for real estate purchases by foreign investors.
Spain's Golden Visa Program has been a valuable source of investment and has helped to attract wealthy non-EU investors to the country. However, it is facing increased scrutiny due to rising housing prices and displacement of local populations. The government must now weigh the benefits of the program against its negative effects, as well as the potential loss of investment if the program is terminated. Other European countries, such as Portugal and Ireland, have already decided to abolish their Golden Visa Programs earlier this year. The Spanish government's decision on the matter will be watched closely by investors, immigration advocates, and critics of the program alike.
Despite reports of discussions about terminating Spain's Golden Visa Program, the Ministry has not confirmed any such plans. According to an official familiar with the talks, no agreement has been reached yet, as the ministry is still studying the proposals made by various political parties.
Sources
https://www.reuters.com/world/europe/spain-considers-ending-or-curbing-controversial-golden-visa-scheme-2023-05-08/
https://www.schengenvisainfo.com/news/spain-considers-either-doubling-minimum-investment-for-golden-visas-or-abolishing-the-program/
