El Spanish government has announced the elimination of the well-known "Golden Visa" that allows foreign investors to obtain residency in the country by purchasing a home. Pedro Sánchez, head of the Executive, revealed this measure during his speech in Seville, indicating that the proposal would be taken to the Council of Ministers on Tuesday, April 9. This initiative, implemented since 2013 by the Popular Party, offers residence to those who invest more than 500.000 euros in properties in Spain, but the Government intends to reverse this incentive as part of its approach towards housing as a right and not just as a business. speculative.

The real estate market is the main source of investment

The data shows that the majority of investment visas, around 94%, are linked to real estate investments, especially in urban areas such as Barcelona, ​​Madrid and Valencia. Although the regime also applies to other financial assets, such as public debt or shares, the Government's focus is on eliminating the "Golden Visa" for home purchases, without affecting other forms of investment.

Chinese and Russian investors reportedly account for the majority of beneficiaries of this visa over the past decade. Spain granted the largest number of visas to Chinese investors, followed by Russian, Iranian and American investors, mainly for real estate acquisitions.

Doubts about the impact of the elimination of the “Golden Visa”

Despite the Government's decision, some experts in the real estate sector doubt the real impact of this measure on the housing market. They consider that the purchase of properties by non-EU foreigners has not been a significant factor in the housing crisis in Spain. In addition, they highlight that the measure may have a limited impact, since home purchases by foreigners only represent a small part of the total market.

While some see the elimination of the “Golden Visa” as a protectionist and populist measure, others urge a focus on putting more housing on the market to address supply and demand issues. Although the measure may have political and economic implications, its real effect on the real estate market remains to be seen.

For any questions or clarification about this measure of the Spanish Government contact with the Bosch-Bages notary office in Barcelona.

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