European bureaucrats don’t like golden visas and Spain plans to scrap its scheme over the coming months.
Such schemes, designed to offer wealthy people from outside the European Union residency permits in return investing set amounts in property, have been blamed for housing speculation, putting pressure on locals.
In Spain, golden visas can be ‘bought’ for a half-a-million euros investment (not mortgaged) in a residential property. The visa lasts for three years with various conditions, before it has to be renewed. Similar schemes exist throughout Europe.
As part of the process to scrap the scheme, socialist Prime Minister Pedro Sánchez said the government would now begin to study reforms.
Sánchez said housing is “…a right, not a speculative business.”
Spanish golden visas were first introduced in 2013 by a previous right-wing Popular Party government as a means to attract foreign investors. Since its launch, over 10,000 golden visas have been issued.