Spain has officially ended its Golden Visa program, a scheme that granted residency permits to non-EU citizens in exchange for significant investments, primarily in real estate. The program, initiated in 2013, was aimed at attracting foreign capital and stimulating the Spanish economy. However, it has faced increasing criticism and has now been scrapped by the Spanish government.
What Was the Golden Visa?
The Golden Visa allowed non-European Union citizens to obtain residency in Spain by investing a minimum of 500,000 euros in real estate. Other investment options were also available, including bank deposits, public debt, investment funds, and business projects considered to be of general interest. The main benefit of the program was to provide legal residency, the right to work, and free movement within the Schengen area for the investor and their family.
Why Was It Abolished?
The Spanish government, led by Prime Minister Pedro Sánchez, announced the end of the Golden Visa program in April 2024. The decision was motivated by concerns over access to decent housing for Spanish citizens. Sánchez highlighted that housing had become a major issue, particularly for families and young people, with many finding it impossible to secure affordable accommodation. Additionally, there were criticisms about the potential for money laundering and tax evasion associated with the program.
Impact on the Real Estate Market
While some real estate agencies expressed concerns that the end of the Golden Visa program would deter foreign investment, the overall impact on the Spanish property market is expected to be limited. Experts suggest that the majority of international transactions were not dependent on the Golden Visa. Spain’s inherent attractions, such as its quality of life, safety, and strong economy, continue to draw foreign investors.
Spain’s Appeal Remains Strong
Despite the end of the Golden Visa, Spain remains an attractive destination for foreign investment. The country offers a competitive cost of living, beautiful scenery, a rich history, and delicious cuisine. The real estate market is underpinned by solid fundamentals, and demand for luxury properties is expected to remain robust.
Controversies and Criticisms of Golden Visa Programs
Golden Visa programs, not only in Spain but globally, have faced criticism. Concerns have been raised about the potential for corruption, with Transparency International warning about the misuse of these programs for illicit purposes. There are also fears that these schemes contribute to rising property prices, making housing less affordable for local populations.
Global Trend
Spain’s decision to end its Golden Visa program aligns with a growing trend among countries to either abolish or restrict such schemes. Other countries, including Portugal, the UK, and Ireland, have taken similar steps due to concerns about their impact on the housing market and potential for misuse.
Conclusion
The end of Spain’s Golden Visa program marks a significant policy shift, reflecting the government’s focus on addressing housing affordability for its citizens. While the program did attract foreign investment, concerns about its potential negative consequences have led to its termination. Spain, however, remains a desirable destination for international investors due to its many attractions and the underlying strength of its real estate market.
For foreigners seeking an alternative to establish a second home or long-term residence in a European country, the French VLS-TS long-stay visitor visa program presents a viable option. This visa allows individuals with sufficient financial resources to reside in France without working there. While it has its own requirements and limitations, it offers a pathway to enjoying the French lifestyle and potentially purchasing property, for those who meet the criteria. For further information and guidance on the French VLS-TS long-stay visitor visa, you can contact LexCase Avocats in Paris – French Desk.
