The President of the Spanish Government, Pedro Sánchez announced on Monday the elimination of the controversial “golden visas”a program that granted residency to foreigners who invested half a million euros in real estate properties in Spain.
This measure, which will be approved at the weekly meeting of the Spanish Government, aims to combat real estate speculation that affects numerous cities in the European country.
In its statements, the Spanish government considers that the elimination of golden visas will help curb speculative investment in the real estate marketwhich will benefit young people and families seeking access to decent housing.
History of “Golden Visas” in Spain
Golden visas were introduced in Spain in 2013 by the conservative Government of Mariano Rajoy, as a measure to boost foreign investment in the midst of the financial and real estate crisis. However, the program has come under fire due to its focus on real estate investment and its negative effects on the housing market.
For this reason, President Sánchez highlighted that the Most of the golden visas are concentrated in cities such as Barcelona, Madrid, Malaga, Alicante, the Balearic Islands and Valenciawhere the housing market is highly stressed.
Spain joins other southern European countries that have decided to eliminate or tighten their golden visa programs in response to growing concerns about real estate speculation.
Portugal stopped issuing these visas at the beginning of 2023, followed by Greece, which tightened the rules at the end of March. These measures have generated debates about equity and security in the European Union.
The announcement of the elimination of golden visas has been met with praise and criticism. Ernest Urtasun, spokesman for the far-left Sumar party and Minister of Culture, called these visas a “European shame.”
Meanwhile, the measure represents a step towards reforming the real estate market in Spain and finding more equitable solutions for access to housing.
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