Spain will withdraw the so-called “golden visas” program, which granted residency rights to foreigners making significant investments in real estate in the country. This announcement came from the Prime Minister of Spain, Pedro Sanchez, who addressed journalists on Monday, as reported by Reuters.

According to Sanchez, ending this program will help make access to affordable housing “a right, not speculative business.”

The program provided citizens of non-EU countries who invested at least €500,000 – without obtaining a mortgage – in Spanish real estate with a special permit allowing them to live and work in the country for three years.

“Today, 94 out of every 100 such visas are linked to investments in real estate in large cities, which face a highly strained market and where it is almost impossible to find decent housing for those who already live, work, and pay taxes,” said Sanchez.

He added that the government will initiate the process of terminating this program at the weekly Cabinet meeting on Tuesday, following the review of a report presented by the Ministry of Housing.

According to government data, from the inception of the “golden visa” program in 2013 until November 2022, Spain issued nearly 5,000 permits.

Chinese investors top the list, followed by Russians who invested over €3.4 billion, according to a Transparency International report for 2023, which questioned whether the authorities investigated the origin of these funds.

According to the real estate website Idealista, this measure is unlikely to impact the real estate market, as less than 0.1% of the 4.5 million houses sold during this period were purchased through this program.

Neighbouring Portugal recently revised its “golden visas” program and excluded real estate investments to address the housing crisis. Foreigners seeking residency rights can still invest their money in investment funds.

Main Image: http://www.unique-almeria.com/property-for-sale-spain.html

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