The case

To combat the housing shortage in Spain, the central government has decided to end the Golden Visa programme for property investors from non-EU countries, aiming at curbing speculation.

Source: SRF 1 (in German)

The commentary

Since 2013, the Golden Visa programme has allowed citizens from non-EU countries to acquire residency in Spain if they buy property worth at least  EUR 500,000 in Spain. The programme also applies to financial investments of at least EUR 1 million in companies or EUR 2 million in government bonds. Similar programmes were also launched in other European Union countries during the Euro crisis. Granting an investor visa in return for the purchase of property has been considered controversial everywhere because it is seen as one of the causes for the price increases on the property market and, as a consequence, the entailing housing shortage. Sánchez said on Monday that 94 % of all Golden Visas in Spain have been granted for property investments. According to Sánchez, the situation is particularly tense in major cities such as Madrid, Barcelona, Málaga and Valencia, but also extends to the Balearic Islands, including the holiday island of Mallorca. Due to the demand coming from wealthy foreigners, it is almost impossible for locals who live, work and pay taxes there to find affordable accommodation. Official figures show that Spain has granted more than 5,000 Golden Visas since 2013, with more than 2,000 going to citizens from China.

Prime Minister Pedro Sánchez announced in Seville on Monday: “We will take the necessary measures to ensure that housing is a right and not a speculative business”, though he did not name a date as to when the amendment will enter into force. “The Council of Ministers will finalise the necessary amendment to the law today in Madrid”, said Sánchez.