Spain Considers Either Doubling Minimum Investment for Golden Visas or Abolishing the Program

The Head of the Spanish Mas Pais party, Ingio Errejon, told reporters on Monday that he has reached a preliminary agreement with the Social Security Ministry that would terminate the Golden Visa Program, AtoZSerwisPlus.com reports.

Spain’s Golden Visa scheme permits non-EU nationals to acquire residency in this country if they make an investment of at least €500,000.

According to a report of El Pais, the government is considering either increasing the minimum amount of investment required for the Golden Visa Program or abolishing the scheme, which was proposed by the Mas Pais party.

Errejon said that the golden visas encourage speculation in housing prices in this country, stressing that the program does not bring benefit to the national economy and expels the local population.

“Spanish citizenship cannot be bought,” Errejon pointed out while stressing that the scheme has led to a “brutal” surge in housing prices and pushed locals out of their neighbourhoods without creating any new jobs.

Aiming to stimulate the country’s economy, the Spanish government launched the Golden Visa Program in 2013, granting residency to applicants who meet the needed requirements and make significant investments, thus offering its beneficiaries visa-free access to the Schengen Zone and a path to permanent residency, among others.

From the beginning of the program until November last year, authorities in Spain issued nearly 5,000 permits, with Chinese investors benefiting the most from this scheme or 45 per cent of the total (2,263 visas issued).Arguing that the program does not bring any benefits to the country, the Spanish left-wing political party, Mas Pais, in February this year submitted a bill to Congress in order to abolish the Residency by Investment scheme.

Errejon considered it different from investing in real estate and different when internationals invest money in businesses in Spain, which later make a contribution to the growth of the country’s economy.

In addition, the leader of the Mas Pais party said that the Spanish government does not investigate where the money to purchase real estate comes from.

Golden Visa programs launched in several European countries have often been criticised and urged to be terminated by the EU authorities following their involvement in several illegal affairs.

Earlier this year, Portugal announced that it terminated its Golden Visa Program, while the decision to abolish the Residency by Investment scheme was also taken by Ireland.