The controversial Spanish “golden visa” programme is closer to being cancelled, only seven months after it was first announced.
The scheme grants residency to non-EU nationals who invest €500,000 or more in Spanish real estate or make other large investments. But it is now facing what could be its final legislative hurdle.
While initially welcomed, it has increasingly come under scrutiny.
Critics argue that the policy has driven up property prices in Spain’s urban and coastal areas, making housing even less affordable for Spaniards in an already saturated market.
Supporters of the scheme’s cancellation assert that limiting foreign access to high-value property could help cool an overheated real estate sector.
However, critics warn that removing golden visas will do little to improve Spain’s housing affordability issues and suggest the move is largely symbolic.
Prime Minister Pedro Sánchez initially announced plans to abolish the golden visa program in April 2024, making national headlines.
Yet his government struggled to follow through, as the move required parliamentary support that the fragile coalition found hard to secure.
The PSOE-led government attempted to attach an amendment to the country’s new land law, but the proposal was dropped from the legislative agenda when it became clear it lacked sufficient support.
In response, the government sought alternative pathways to push the measure through, exploring various bills where the amendment could be added.
But opposition from the right-wing Partido Popular (PP) and Vox complicated efforts, especially given the PSOE’s thin parliamentary majority.
The breakthrough came recently when the Justice Committee approved an amendment to the judicial efficiency and consumer rights bill that would effectively end the golden visa.
The move passed with 20 votes in favour and 17 against, despite PP and Vox opposition.
During the committee debate, Enrique Santiago, a deputy from the left-wing Sumar coalition, expressed strong support for repealing the golden visa, calling it “extremely important” and describing the amendment as a “positive” step.
Under the amendment, sections of the law outlining the golden visa’s qualification criteria are left intentionally blank, effectively dismantling the program once the bill is passed.