Dec 12, 2024, 2:06 PM
Dec 12, 2024, 2:06 PM

Spanish Senate stops golden visa termination, igniting debate on relocation options

Highlights
  • The Spanish Senate has blocked a proposed bill to abolish the Golden Visa program, which provides residency for investors.
  • This political disagreement has delayed the legislation back to Congress for further discussions and revisions.
  • The situation underscores the ongoing debates over residency investment schemes and their impacts on foreign investment and local housing issues.
Story

In Spain, the Senate has recently pushed back against the government's proposal to eliminate the Golden Visa program, which permits residency for foreign investors. This politically charged situation arose following an April announcement by the Spanish government, aiming to terminate the program by January 2025. Until the end of October 2024, 780 Golden Visas were granted, with many allocated to British applicants, indicating continued interest amidst impending policy changes. The Golden Visa, also known as Residency by Investment, has been appealing particularly to foreign property buyers. Even with restrictions on non-residents for spending only 180 days a year in Spain, Britons remain notable property investors in the country due to favorable conditions and lifestyle opportunities. The Senate's rejection of the bill reflects ongoing political tensions, as it is controlled by the center-right Partido Popular, whereas the Congress is influenced by Prime Minister Pedro Sanchez's coalition, which includes the center-left Spanish Socialist Workers' Party and the left-wing Unidas Podemos. The contention surrounding the Legislative Efficiency Bill has attracted attention due to its controversial provisions, particularly related to expediting trials for illegal squatting incidents alongside abolishing the Golden Visa. The backlash against the government's approach has been framed by opposition parties as a failure in legislative drafting, described as a 'hodgepodge' of ideas lacking coherence. In light of these disagreements, the PP has lodged a veto to counter the proposal, resulting in the proposal's necessary return to Congress for further debate. Despite this challenging political climate, the Golden Visa program has continued to issue visas at a high rate, particularly after the announcement of its possible abolition, leading to a spike in applications. Many stakeholders express mixed feelings about this program, citing concerns over Spain's housing crisis while acknowledging the investments it facilitates. The Bank of Spain estimates that approximately 600,000 new homes need to be constructed annually to meet the demand, contrasting sharply with current annual plans which account for only 90,000 new builds. This discrepancy highlights the broader issue of affordable housing that Spain grapples with amidst changing immigration and residency policies.

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