End of the Golden Visa in Spain? The Criticism and What You Should Know

Six months after the announcement made by the Government, Spain has yet to put an end to the Golden Visa. The law is still under parliamentary process, and everything suggests that its approval is far off.

In July, the ruling party introduced an amendment during the processing of the Organic Law on measures for the efficiency of the Justice service, to end the ‘golden visa.’ A previous attempt, during the processing of the Land Law, failed in May.

However, according to parliamentary sources cited by El Independiente, this matter could be prolonged, as over a thousand amendments were proposed to the same bill in addition to the government initiative.

What does the measure entail?

According to the Government’s president, Pedro Sánchez, the plan is to repeal all types of golden visas, not only those linked to real estate investments but also those related to business investments.

In 2023, more than 3,000 of these visas were granted, linked to property purchases, and so far in 2024, 426 have been approved, according to the Ministry of Housing.

The Minister of Housing, Isabel Rodríguez, claims that this type of investment “puts a lot of pressure on the market, increases house prices, and encourages speculation,” especially in cities like Madrid, Barcelona, and Málaga.

Thus, the end of the Golden Visa is seen as a key measure to lower housing prices, which are considered too high for some sectors of the population.

Will the goal of lowering housing prices be achieved with this law?

Critics of the end of the Golden Visa, such as the Madrid Association of Real Estate Companies (Amadei), say no. They argue that this visa primarily involves investment in luxury properties, not the type of homes that, for instance, young professionals want to buy.

These critics call the measure populist but believe that the program could be improved, especially in terms of transparency and security, ensuring proper implementation and preventing issues such as money laundering.

According to Spanish economist Santiago Niño Becerra, the main cause of high housing prices is scarcity: it is estimated that more than a million homes are needed. In his view, the solution to this crisis is creating a public pool of quality rental housing.

Another critical voice is that of sociologist Kristin Sunak from the London School of Economics. Author of the book The Golden Passport, she is a global expert on the topic, and in her opinion, without the Golden Visa, housing prices will not significantly change.

“It’s just an electoral measure,” she told El Confidencial. “They’ve been talking about it for a while because it sounds great as a campaign slogan, but they don’t have the will to do it.” Sunak adds that in large European countries like Spain, the economic impact of the ‘golden visa’ is minimal and is not the cause of the housing crisis.

So, can I still invest in the Spanish Golden Visa?

Of course, you can. Spain remains a very attractive country: as of today, British, German, French, Italian, and Chinese investors, among others, are still acquiring properties with an eye on the Golden Visa.

As long as the amendment to eliminate the program is not passed, the legal situation remains the same, and investments made under this program will be honored.

AIM Global has a team of experts who will help you choose the most convenient and profitable type of investment for you, as well as handle all the necessary paperwork.

Schedule a meeting with us. We will accompany you until you have all the documentation in your hands. We are experts in international mobility and want to help you make your projects a reality.

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