In a recent announcement, the prime minister of Spain, Pedro Sanchez, disclosed that the Golden Visa programme offered to wealthy foreigners will be scrapped. If reports are to go by, it is an attempt to make housing more affordable for Spaniards. The announcement was made on April 8, Monday. Here are all of the other important details that you would need to know about this update in Spain’s visa policy for foreigners.
Golden Visa In Spain Scrapped To Make Housing Cheaper
According to an article which was recently published by Reuters, the process to eliminate the scheme will be launched on Tuesday. This is when the weekly cabinet meeting will happen. The elimination of the scheme will begin after studying the report that the Housing Ministry submits.
As per the statement made by Sanchez, this is an attempt to make housing into a “right” instead of a speculative business. Many wealthy non-Spaniards end up investing money in the country and buying homes. This has led to a price hike which in turn makes it difficult for locals to buy houses.
By curtailing the Golden Visa program, it is hoped that wealthy foreigners will not be able to impact the housing market by purchasing property that could otherwise be purchased by the locals. Many people have expressed their reservations about this policy, however.
What Is This Visa And How Did It Impact The Housing Market?
The Golden Visa policy was initiated by Mariano Rajoy more than ten years ago in 2013. He was the Prime Minister at the time. Even then, there was fear that rich Chinese and Russian citizens would abuse such a program.
Under the golden visa, foreigners who have invested €500,000 or $541,250 in the country are allowed to buy property. They can live and work in Spain for three years. People who have a golden visa need not even take out a mortgage.
Also Read: Japan Expands Its Foreign Worker Visa Programme, Set To Invite 8,20,000 Foreigners In Next 5 Years
Have you ever been to Spain or considered applying for the Golden Visa program? Let us know in the comments section below!
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