Spain is considering to tighten the golden visa rules for real estate investors

What has happened? Spain is considering tighter rules on issuing golden visas to foreign investors or even canceling the program, newspaper El País reported on Monday, citing people at the social security ministry it doesn’t identify. Sources from the Ministry of Economic Affairs and the Ministry of Inclusion, Social Security and Migration have confirmed the information.

What are the rules now? The current rules grant a three-year residence permit to foreign nationals who spend at least €500,000 to buy a home in the country. Foreigners can also get a golden visa by investing at least €1 million in shares or more than €2 million in Spanish treasury bonds. 

Last year, Spain issued almost 2,500 permits to investors who bought a home worth more than €500,000, which accounted for 94% of the new authorizations.

Context. As recalled by the Majorca Daily Bulletin, the Spanish party Más País demanded the abolition of the program in a draft bill introduced in February 2023.

According to Íñigo Errejón’s party, the ‘golden visas’ encourage “speculation” in housing prices in Spain, do not benefit the national economy and “expel the local population”, generating a “very negative” chain effect on the housing market.

The countries of the European Union have recently been actively reviewing their golden visa programs. Ireland closed its scheme in February 2023. Greece is ready to double the investment threshold to €500,000 in several key locations, including Athens. And the Portuguese government has said it will revise its program.

Source: Bloomberg

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