Spain ends Golden Visa program: A new era for foreign investors

The Spanish government has officially suspended the "golden visa" program from April 3, 2024. This program allowed foreign investors to obtain a residence permit in the country by investing a certain amount. In particular, the purchase of real estate for more than 500 thousand euros was considered the most popular direction of this program.

Why was the program canceled?

According to the Spanish Minister of Housing and Urban Development, Isabel Rodriguez, this decision was made to protect the interests of the local population. Because in recent years, demand for the real estate market by foreign investors has led to a sharp increase in housing prices. This has limited the ability of many Spaniards to purchase housing.

“The measures adopted by the Spanish government are similar to those adopted by other European countries, such as Ireland and Portugal. The European Commission has strongly recommended that all member states review their existing citizenship and visa systems for investors by 2022,” the official statement said.

Who will be affected?

Applications from foreign investors who applied for a “golden visa” before April 3 will be processed according to the previous rules. Also, residence permits previously obtained through the program will remain valid until their expiration.

Spain introduced the “golden visa” program in 2013. This program was granted not only to those who invested in real estate, but also to those who invested at least 1 million euros in shares of Spanish companies or 2 million euros in government bonds. However, real estate was the most popular direction.

In 2023, the share of real estate purchased in Spain by foreigners reached a record high, reaching 18%. This was one of the main factors that led to the increase in housing prices for the local population.

Attitudes towards "golden visa" programs in Europe

In addition to Spain, other European countries are also reviewing their "golden visa" or "golden passport" programs. For example, in November 2024, the Cypriot government withdrew the "golden" passports of Russian and Ukrainian billionaires. These passports were issued to those who made large investments in the Cypriot economy. However, due to the detection of cases of corruption, fraud, tax evasion and criminal activity, a number of foreign investors were deprived of this privilege.

Ireland and Portugal have also decided to end their similar programs. All of these decisions are related to the recommendations of the European Commission to abolish the citizenship by investment system in the European Union.

New opportunities for investors in Spain

The Spanish government is working on a new economic strategy to attract foreign investors. It aims to create favorable conditions for foreign investors, but also protect the interests of the local population. Therefore, no official information has been provided about the new program that will replace the "golden visa".

However, Spain continues to be an attractive country for investment. Investments in various sectors of the economy are supported by the government, especially those operating in technological and innovative sectors.

Spain's decision to end the "golden visa" program was made in order to protect the country's real estate market and the interests of the local population. This decision will change the conditions for foreign investors to invest in Spain, but the government is working to create new opportunities for them. Other countries in Europe are also canceling similar programs, which shows the EU's desire to strictly regulate the system of citizenship by investment. Follow “Zamin” news on “Telegram”