Spain may end or curb controversial ‘golden visa’ real estate scheme

SPAIN could pull the plug on its so-called “golden visa” scheme, which grants residency rights to foreigners who invest in real estate in the country, according to the leader of a left-wing party negotiating the issue with the government.

Inigo Errejon told reporters on Monday (May 8) that his Mas Pais party had reached a preliminary agreement with the Social Security Ministry to put an end to the Spain Investor visa programme.

The scheme allows buyers of property worth at least 500,000 euros (S$728,788) and their families to receive three-year residency permits.

“Spanish citizenship cannot be bought,” Errejon said, adding that golden visas had led to a “brutal” rise in housing prices and forced locals out of their neighbourhoods without creating any new jobs.

The ministry would not confirm any plan to terminate the programme. An official familiar with the talks said no agreement had yet been reached as the ministry was still studying proposals made by political parties.

Earlier on Monday, the El Pais newspaper reported that Spain was considering tougher requirements for golden visa applications.

The European Commission has urged EU countries to end programmes allowing investors to obtain citizenship, and to tighten checks when issuing residency permits, describing them as a security and money-laundering risk.

Neighbouring country Portugal said it would end a similar scheme in March.

From the start of the golden visa scheme in 2013 to last November, Spain issued almost 5,000 permits. Government figures showed that Chinese investors led the list.

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Errejon said the visas represented a “backdoor privilege” for millionaires, turning Spain into a “sort of colony, often attracting dark money”. REUTERS