By John Ensor • Updated: 10 Apr 2024 • 17:40
Luxury properties in Spain. Credit: Guschenkova/Shutterstock.com
The Spanish government’s recent decision to get rid of the golden ‘visa’ is being seen by many as an own goal.
Critics argue that the government’s move to end the ‘golden visa’ scheme, aimed at turning housing into a fundamental right, might not curb real estate price surges as intended.
This controversial decision was unveiled by Prime Minister Pedro Sanchez on a visit to a social housing project in Dos Hermanas, Sevilla, on Monday, April 8.
On Wednesday, April 10, the Cabinet is set to review a report to amend the 2013 law, which allows residency for those investing in Spanish property.
Opposition and business leaders from the Costa del Sol, a hotspot for luxury properties owned predominantly by foreigners, have vehemently opposed the scrapping of the ‘golden visa’. They believe this move will neither halt the climb of real estate prices nor benefit Spain’s economy.
La Informacion reported that the Sanchez Government ‘is once again trying to cover up its incompetence and lies with demagoguery’, lamented Francisco Salado, President of the Malaga Provincial Council, accusing the government of failing to deliver on its housing promises.
Salado underscored the significant economic contribution and employment opportunities generated by residential tourism.
Scott Marshall, Benahavis’s Councillor for Tourism, Immigration, and Local Development, criticised the decision as hastily made without proper consultation.
‘The problem is that, whether the initiative goes ahead or not, it contributes to creating uncertainty in the foreign investor,’ Marshall commented, advocating for a focus on public housing development rather than deterring prospective second-home buyers.
The potential economic repercussions of discontinuing the ‘golden visa’ are a major concern among stakeholders in the residential tourism sector.
Ricardo Arranz, President of the Andalucian Federation of Developers and Residential Tourism and executive president of the Villa Padierna Hotels & Resorts group, voiced his disapproval.
He highlighted Madrid and Marbella as prime examples of how foreign investment fuels job creation and local spending.
‘The ‘golden visa’ brings residents who want to invest in Spain to have a foot in Europe or simply because they want their children to study in an area like the Costa del Sol,’ explained Arranz, emphasising the benefits of attracting high-net-worth individuals to the local economy.
Critics argue that without these investors, Spain could lose out on a lucrative segment of the tourism market, suggesting a need to weigh the value of quality over quantity in residential tourism.
The debate continues on how best to balance the rights to housing with the economic advantages brought by foreign investors, highlighting a complex issue at the intersection of public policy, real estate, and tourism economics.
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Originally from Doncaster, Yorkshire, John now lives in Galicia, Northern Spain with his wife Nina. He is passionate about news, music, cycling and animals.
Spain has relied on foreign investment since the 1960’s, However contentious the issue is, one point is clear people HAVE invested in Spain’s infrastructure and this is sending the wrong signal out to people thinking of investing here. There will come a time when the books are not balanced as in 2013 when this visa scheme was introduced, but the danger is once this is scheme is halted people ready to invest will look afield for real estate, as the message sent out by this so called Government is investment in Spain is fickle and unstable. Be careful what you wish for Pedro Sanchez.
I think you’re right. Don’t make it hard for investors
Of course the corruption behind the big spenders and their outspoken supporters, could reduce the limitless money laundering with bags and bags of high value Euros being secretly transported via their cars, with owners from both sides of the current European confict.
I remember the Torrevieja Estate Agent/Solicitor being shot and killed some 20 years ago by Russians when he declined to handle hot money.
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