Spain is set to end the real estate investment option under its Golden Visa Program by January 2025, aiming to address housing affordability concerns in major cities.
Understanding Spain’s Golden Visa Program
Introduced in 2013, Spain’s Golden Visa Program grants residency to non-EU nationals who make significant investments in the country. The most popular route has been through real estate, requiring a minimum property purchase of €500,000. This option has attracted numerous investors, particularly from China, Russia, and the United Kingdom.
Reasons for Ending the Real Estate Investment Option
The decision to eliminate the real estate pathway stems from concerns that foreign investments have contributed to rising property prices, making housing less affordable for local residents. Prime Minister Pedro Sánchez emphasized the need to combat housing speculation and ensure that access to affordable housing becomes a right, not a privilege.
Legislative Process and Timeline
On November 14, 2024, Spain’s Congress of Deputies approved a bill to remove the real estate investment option from the Golden Visa Program. The bill now awaits review by the Senate. If passed, the new regulations are expected to take effect in January 2025.
Impact on Investors and the Housing Market
The removal of the real estate investment option may shift investor interest to other avenues, such as business development and capital transfers. This policy change aims to reduce speculative buying and make housing more accessible to local residents.