Another country scraps golden visa programme for wealthy foreigners

The European Commission has long called for an end to golden visas

Summer afternoon with people relaxing on the beach, Benidorm, Spain (Getty Images/iStockphoto)

Another country will scrap the so-called golden visa programme granting residency rights to foreigners who make large investments in real estate.

Spanish Prime Minister Pedro Sanchez told announced the news on Monday

Ending the scheme would help make access to affordable housing “a right instead of a speculative business”, Sanchez said.

The programme awards non-EU citizens investing at least 500,000 euros ($541,250) - without taking out a mortgage - in Spanish real estate a special permit allowing them to live and work in the country for three years.

“Today, 94 out of every 100 such visas are linked to real estate investment...in major cities that are facing a highly stressed market and where it’s almost impossible to find decent housing for those who already live, work and pay their taxes there,” Sanchez said.

He added that the government would launch the process to eliminate the scheme in Tuesday’s weekly cabinet meeting after studying a report submitted by the Housing Ministry.

Neighbouring Portugal has recently revamped its own “golden visa” scheme and excluded real estate investment to tackle a housing crisis. Foreigners who want to secure residency rights can still put their money into investment funds.

The European Commission has long called for an end to all such programmes, citing security risks.

The Greek parliament voted on last week to amend its legislation. Third-country citizens from now must pay 800,000 euros for a five-year residence permit.

In January Australia also ended its scheme, which granted those who invested more than AU$5m (£2.6m) into the country the chance for permanent residency.

Thousands of Significant Investor Visas (SIVs) have been granted since 2012, but critics say that while they benefit wealthy individuals, they provide little for the Australian economy,

“It has been obvious for years that this visa is not delivering what our country and economy needs,” minister for home affairs Clare O’Neil said in a statement on Monday.

Instead, Australia will issue more skilled workers visas, the government said.

Several countries are reviewing visa schemes which allow wealthy investors quick residence. The UK axed its fast-track visa services for rich investors in 2022 after concerns grew over Russian money coming into the country.