A significant shift in European investment immigration policies has emerged! Following the tightening or suspension of “Golden Visa” programs in countries like the UK, Ireland, and Portugal, the Spanish government announced on April 8, 2024, that it will begin the process of canceling this fast-track immigration route for foreign investors. Spanish Prime Minister Pedro Sánchez officially revealed this decision to the public on the same day.
Spain Closes Golden Visa Program
The Spanish “Golden Visa” program allowed non-EU citizens to obtain a three-year work residency permit by investing over €500,000 in local real estate. However, in recent years, this program has faced widespread criticism for straying significantly from its original intent, becoming a tool for foreign speculation in the housing market. In his speech, Sánchez pointed out that nearly 94% of “Golden Visas” issued are linked to real estate investments, a situation that has adversely affected the housing rights of ordinary Spanish citizens. He emphasized that access to affordable housing should be a “basic right” rather than a target for speculative business.
From Sánchez’s statements, it is clear that the Spanish government aims to curb excessive speculation in the local real estate market and protect the housing rights of its citizens. Analysts suggest that this move signals Spain’s intention to tighten regulations further to ensure the healthy development of its real estate market. Notably, Spain’s action is viewed as part of a broader EU initiative to promote anti-speculation policies in real estate. In fact, over the past year, countries like the UK, Ireland, and Portugal have taken similar actions, suspending or tightening their own “Golden Visa” programs. In February 2022, the UK announced the cancellation of its “Golden Visa” program, while Ireland halted its program for non-EU citizens. Portugal also imposed restrictions on “Golden Visas” in Lisbon, Porto, and densely populated coastal areas. Earlier this year, Greece raised the investment threshold for “Golden Visas” in certain areas from €500,000 to €1 million due to a backlog of applications.
The European Commission has previously stated its intention to completely close all investment immigration programs within EU member states by 2025. Undoubtedly, the days of the European “Golden Visa” are numbered. Analysts believe that the pressing issue for European countries is how to balance public welfare with the attraction of foreign investment. It is undeniable that investment immigration programs have historically brought significant foreign capital and job opportunities to many European nations. For instance, Malta, with its long-standing investment immigration programs (MRVP and MPRP), has raised substantial fiscal revenue by selling permanent residency and citizenship to overseas investors. However, as the EU tightens its policies, the future of such investment immigration programs in Malta and similar countries will be closely scrutinized.
In summary, the trend of European countries abolishing Golden Visa programs is becoming increasingly apparent, leaving few expensive investment immigration routes available. In the future, Europe may gradually shift towards more targeted investment immigration pathways that balance capital inflow with public interest. However, the Maltese immigration authorities have yet to adjust their investment immigration programs, so for those looking to relocate to Europe, navigating this new landscape will be a significant challenge ahead.
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