Removing the real estate investment option from Spain’s Golden Visa Program is not being considered enough by authorities in this country, after the government is planning to abolish the scheme altogether.
The Government of Spain led by Prime Minister Pedro Sanchez’s Socialist Party (PSOE) has introduced an amendment to the country’s Residency by Investment Program through which, all routes for acquiring residency through this program would be ended, Schengen.News reports.
The decision, according to local media reports, comes after research revealed that almost all golden visas were granted through the real estate investment option.
The government said that applicants from countries such as Russia may try to acquire residency in Spain through other investment forms, which could continue to affect housing prices.
In this regard, the Managing Partner and Client Services of Orience, Krista Victorio, told Imi Daily, that the PSOE’s test amends the Organic Law Project, and while it is not related to Law 14/2013 of September 27 (the law that launched the program), it appears that the initiative is attempting to leverage an existing law project to simultaneously affect the golden visa, even though indirectly.
The new changes would eliminate all golden visa routes, taking also into account those acquired in exchange for investments made in a business project.
Victorio said that the proposal is in the article amendment phase currently, which process will be open until September 4, as the legislative process is set to begin no earlier than September 9.
Abolishing Real Estate Investment Options Not Considered Enough
Introduced in 2013, Spain’s Golden Visa Program allows internationals to acquire residency, in exchange for financial investment and meeting the required conditions.
Since its launching, more than 15, 000 wealthy internationals acquired residency in Spain through the Golden Visa Program, the majority of them by purchasing properties worth at least €500,000.
Real estate investment options were one of the most famous routes for obtaining residency in this country. However, in a bid to deal with the housing crisis, in April this year, the Spanish government announced that purchasing a property worth €500,000 would no longer serve as an option to obtain Spanish residency.
Confirming that Spain ended the real estate investment option from its Residency by Investment Program, President of the Government, Pedro Sanchez said Madrid would take all the needed measures to ensure that housing is a right not “a mere speculative business”.
I want to announce that tomorrow’s Council of Ministers is going to study a report submitted by the Minister of Housing and Urban Agenda to modify the law, approved by the Popular Party in 2013, which allows obtaining a residence visa if you invest in housing in our country.
The EU Commission has often called on all EU countries that operate the Golden Visa Program to terminate them following allegations that these schemes are involved in several irregular affairs.
