Spain has become the latest European country to put a stop to the so-called “golden visas” that permit wealthy people from outside the European Union to obtain residency permits on investing more than half a million euros (dollars) in real estate.
This latest development was made known by socialist Prime Minister Pedro Sánchez who also said his minority coalition government would study the reform in the next weekly Cabinet meeting.
Sánchez added that the reform was part of the government’s push to make housing “a right, not a speculative business.”
The government says some 10,000 such visas have been issued since the measure was brought into law in 2013 by a previous right-wing Popular Party government as a means to attract foreign investors.
Meanwhile, “Golden visas” are strongly criticized for spurring property price hikes and speculation in the housing sector. Soaring house prices have long been a major problem for many Spaniards, particularly in the country’s major cities.
What You Need To Know About ‘Golden Visa’
Residence by investment schemes, otherwise known as ‘golden visas is a type of residency-by-investment program that allows individuals and their families to obtain residency or even citizenship in a foreign country by investing in its economy. A minimum investment amount in real estate, government bonds, or other approved investment vehicles is typically required to qualify for the program.
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Any applicants must be over the age of 18, have a clean criminal record, and have sufficient funds to make the required investment.
There are also golden passports, known officially as citizenship by investment programs, that allow foreigners to gain citizenship using the same means.
For countries in the EU, this also means gaining access to many of the benefits of being a resident of the bloc – including free movement between countries.
Countries That Have Scrapped Their Golden Visa Schemes
In February 2022, the UK government scrapped its golden visa scheme that allowed wealthy foreign nationals to settle in the country in exchange for bringing part of their wealth with them. The decision to end the scheme came as part of a move to clamp down on dirty money from Russia.
In February 2023, Ireland also stopped its golden visa scheme – the Immigrant Investor Programme – which offered Irish residence in return for a €500,000 donation or a three-year annual €1 million investment in the country.
Ireland had already suspended the scheme for Russian citizens in March 2022 as part of sanctions imposed on the country for the invasion of Ukraine. The following month, the European Parliament warned that the program was vulnerable to tax abuse. The final decision to end the scheme was the outcome of various international reports and internal reviews.
In February 2023, Portugal’s Prime Minister António Costa announced plans to end the country’s lucrative residence-by-investment scheme to tackle property and rent price speculation. Until then, foreigners could either purchase a property or invest some of their wealth into the country – known as capital transfer investments – in exchange for residency.
Between January and August 2022, the program brought almost €398 million to the country, according to Portugal’s national news agency LUSA.
Madeira opposed the decision to end Portugal’s golden visa by real estate, which brought many high-income foreign residents to the autonomous region.
Since 6 October 2023, you are no longer able to apply for a golden visa through a real estate investment in Portugal. The new rules do not apply retroactively to existing visa holders, however.
