Spain scraps golden visa program for foreign real estate investors

​​​​​​​OVIEDO, Spain

Spain on Thursday officially ended its golden visa program, bringing to a close 12 years of offering residency to real estate investors.

The scheme launched in 2013 to attract foreign capital in the aftermath of the financial crisis granted residency permits to those who purchased property worth at least €500,000 ($555,000).

The government said 90% of the purchases were concentrated in high-demand areas such as Barcelona, Madrid, Malaga, Alicante, Valencia and the Balearic Islands, where rising housing costs have squeezed local residents.

“These cities are dealing with a highly stressed housing market, where it is almost impossible for those who live and work in them and pay their taxes every day to find decent housing,” Prime Minister Pedro Sanchez said last spring when announcing the decision to eliminate the program.

“We are going to take all the necessary measures to guarantee that housing is a right and not a speculative business,” he added.

From 2013 - 2023 Spain granted 14,576 golden visas through property investment, according to government figures.

Most beneficiaries came from China, Russia, the UK, the US, Ukraine, Iran, Venezuela and Mexico.

In 2022, the European Commission urged member states to end programs that grant passports or residency in exchange for financial contributions.

Housing affordability has also become a top domestic issue. In a March poll by the public research institute CIS, housing was cited as the main concern for Spaniards.