The Spanish government will prohibit investment in projects that lead to an increase in housing prices in this territory in exchange for a residence permit through the Golden Visa Program.
The Summary Bill to apply new changes to the Golden Visa Program is already being processed by the Congress of Deputies, SchengenNews reports.
The new text being processed by the Lower House brings as an option the veto to invest in projects that make the housing market more expensive.
The proposal to reform the law notes that internationals, in exchange for a golden visa, will be eligible to invest in a business project that is going to be developed in Spain and that it is considered to have general interest for this country, however, the investment “should not have an inflationary effect on the housing market.”
The proposal argues that permitting €500,000 investment by purchasing a property, to obtain a visa through the RIP brings a high risk of money laundering after the origin of money is unknown and puts pressure on the market by purchasing properties that are above the price.
In the current context, the conjunction of these real estate investments to obtain residence permits, together with other elements that stress the market, such as the unstoppable boom in tourist apartments or the rise in interest rates, pose a serious threat to the access to housing for medium and low incomes.
New Changes to Golden Visa Program
In a bid to manage the housing crisis, last month, authorities in Spain applied new changes to the Golden Visa Program, among them, discontinuing the real estate investment option from this scheme.
Confirming that purchasing a property of €500,000 or more will no longer grant foreigners residency in Spain through the Residency by Investment Scheme (RIP), the Prime Minister of Spain, Pedro Sanchez, said that Madrid would take all the needed measures to ensure that the housing is a right and not “a mere speculative business”.
I want to announce that tomorrow’s Council of Ministers is going to study a report submitted by the Minister of Housing and Urban Agenda to modify the law, approved by the Popular Party in 2013, which allows obtaining a residence visa if you invest in housing in our country.
The real estate option was among the most famous options among internationals interested in acquiring residency through this scheme.
