Spain’s Congress has officially terminated the Golden Visa programme, a controversial scheme that allowed non-EU citizens to obtain residency through substantial real estate investment. The decision, passed by a narrow margin of 177 to 170 votes, signifies a shift in Spain’s approach to housing and immigration policy, prioritizing local housing needs over foreign investment.
The Golden Visa program, launched in 2013, required a minimum investment of €500,000 in Spanish property to secure residency. Advocates praised it for boosting foreign investment and aiding economic recovery after the financial crisis. Critics, however, argued that it inflated housing prices, reduced affordability, and raised concerns about money laundering and tax evasion.
The abolition follows Prime Minister Pedro Sánchez’s April 2024 announcement highlighting the program’s role in exacerbating housing challenges, especially in urban centres like Madrid and Barcelona. These areas have seen a surge in demand, straining housing availability for local residents.
Simultaneously, Congress has introduced fast-track legal proceedings for property squatting cases. This new measure aims to expedite eviction processes, offering landlords quicker resolutions in disputes involving unauthorized property occupation.
The legislative changes, part of the Organic Law on Measures for the Efficiency of the Public Justice Service, will come into effect after publication in the Official State Gazette (BOE).
The end of the Golden Visa has sparked debate. Supporters of the move believe it will stabilize housing markets and prioritize local needs. Opponents warn it may deter foreign investment and harm the real estate sector, potentially hindering Spain’s post-pandemic economic recovery.
The government has expressed interest in exploring alternative strategies to attract foreign investment while addressing housing concerns. Meanwhile, real estate stakeholders are monitoring the situation closely, anticipating potential market shifts.
