Alex Trelinski
THE end of Spain’s Golden Visa scheme is looming with British and other overseas home buyers looking to beat the April 3 deadline.
Prime Minister, Pedro Sanchez, announced in April 2024 that the government would scrap the residency visa awarded to people from outside the European Union.
Golden Visa applicants have to invest either €500,000 in property, €2 million in Spanish government bonds, or €1 million in shares in Spanish companies.
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Critics of the scheme said it encouraged foreigners to buy property, removing opportunities from the housing market for Spanish citizens and putting up rental prices.
Those who successfully acquired citizenship through the programme are not required to live in Spain and only have to be in the country for one day per year to maintain their status.
Opponents argued the loophole meant the economic benefits of handing out a Golden Visa were not being realised.
The European Commission called on EU members to stop selling citizenship in this way in 2022.
It flagged concerns with money laundering, tax evasion and security, which it said ‘would be incompatible with EU norms’.
However estate agents in popular areas like the Costa Blanca and Costa del Sol warned that ‘irreparable damage’ would be caused to the real estate sector and tourism if the Golden Visa ended.
“The fact that there are foreign buyers who invest more than €500,000 in buying a house in Spain does not affect the right to housing of families in our country at all as having those properties would not solve the housing problem,” said Marife Esteso, president of the Alicante Real Estate Agents Association
2024 saw 780 Golden Visas granted up to the end of October, with 573 of those granted since the abolition announcement was made.
The Golden Visa was due to end in January, but a Senate vote delayed the process until next month.
