The process of eliminating the “Golden Visa” continues. The Congress of Deputies approved on Thursday the removal of this figure, which makes it possible to obtain a residence permit by purchasing accommodation for more than half a million euros. The Executive has articulated the process through an amendment introduced in the law on measures concerning the efficiency of the public service of Justice, which must now be sent to the Senate.
The President of the Government, Pedro Sánchez, announced in April his intention to put an end to this figure, launched by Mariano Rajoy in 2013 to attract foreign capital, which allowed access to the residence regime if more than 500,000 euros were invested in real estate. “Speculative investment in housing,” Sánchez said at the time, “is not the national model we want.”
Since this mechanism came into force, more than 14,576 visas have been granted, according to data from the Ministry of Housing. According to information collected by elDiario.es, between 2018 and 2022 alone, foreign millionaires have made real estate investments in the country for around 4.8 billion euros. In terms of the number of golden visas, China leads, with 1,302 applications; followed by Russia, with 521; Iran (124) and United Kingdom (123).
Although the majority of requests come from people buying a house in Spain, a small group, around 6%, opt for them through investments of any other type. Although it was initially unclear whether these would also be affected, the amendment presented at the end of July also provided for the removal of permits for commercial projects. Concretely, the regulations authorize non-resident foreigners to invest at least one million euros in shares or social participations of Spanish companies, in investment funds or in bank deposits with financial institutions and two million in public debt .
However, the ban will not come into force immediately. The rule must pass the Senate, and once published to the BOE, previously requested applications will continue to be processed, giving these investors the opportunity to continue acquiring properties.
Minister Isabel Rodríguez highlighted in April that the end of this instrument “will give opportunities to those who have difficulty accessing housing in specific locations, with tensions on prices and a lack of residential supply”. Indeed, according to data from his department, Barcelona, Madrid, Malaga, Alicante, the Balearic Islands and Valencia, six particularly stressed and with skyrocketing prices, represent 90% of authorizations. “In some affected cities, housing purchases linked to these investments represent up to 7.1% (Marbella) or 5.3% (Barcelona) of total housing sales in the same year,” they indicated .
The Executive based its decision to end the “Golden Visa” on the commitment to ensure “that housing is a right and not a speculative matter”, but also on the fact that the European Commission has urged Member States to 2022 “to be repealed”. immediately any existing investor citizenship system. “Countries like Ireland or Portugal have already abolished these visas and others are strengthening the conditions to obtain them,” Rodríguez said.
The elimination of these formulas was also a demand of the minority coalition partner. When Sánchez announced his intention to remove them, the second vice president of the government, Yolanda Díaz, assured that the decision had been taken with Sumar, even if it was addressed “in the budget negotiation” and that the socialists “are opposed it.” at that time.”
