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Rabat – Spain will end the so-called “golden visa” initiative that has been granting residency rights to foreigners who invest heavily in the real estate of the European country.
Spanish Prime Minister Pedro Sanchez announced the news on Monday, noting that ending the program would open up better access to affordable housing.
Initially, the program has been providing non-EU citizens who invest at least $451,250 in Spanish real estate a permit, allowing them to both live and work in the country for three years. The purchase, however, should be made without taking a mortgage.
However, this initiative is coming to an end.
Speaking about the golden visa program, Sanchez stressed that 94 out of every 100 such visas are linked to real estate investment, recalling that major cities are facing a “highly stressed market.”
He added that it is almost impossible to find decent housing for those who already live and work and pay their taxes in those major cities.
The prime minister emphasized that the Spanish cabinet is set to launch the process to end the program during Tuesday’s weekly meeting.
Several EU countries made similar announcements, including Portugal.
Under the former program called the Portugal Golden Residence Permit Program, foreigners were enjoying a five-year residence by investment program for non-EU nationals.
For years, the European Commission called for ending the scheme.
In 2022, the commissions sent an opinion to Malta, stressing that the “granting of EU citizenship in return for pre-determined payments or investments, without any genuine link to the Member State concerned, is in breach of EU law.”
The commission further stressed that such schemes undermine the essence of EU citizenship and have implications for the EU as a whole.
