Alex Trelinski
AN end to Spain’s Golden Visa scheme has been delayed after the country’s Senate voted to keep it going.
It was set for abolition as soon as January after Congress approved plans to scrap the scheme.
But now a respite for a few months seems likely after the Partido Popular-led Senate vetoed the measure- meaning that Congress with a majority for the left-of-centre Pedro Sanchez government has to review it again.
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Ultimately Congress can get the final say on the matter, irrespective of the views of Senate, with April now being seen as the target for the visa to end.
The Golden Visa allows non-residents to obtain citizenship through various investment measures.
Specifically, applicants must invest either €500,000 in property, €2 million in Spanish government bonds, or €1 million in shares in Spanish companies.
As property investment is the cheapest route to citizenship under the Golden Visa programme, critics argue that the scheme encourages foreigners to buy property, removing opportunities from the housing market for Spanish citizens and distorting rental prices.
In total, 2024 has seen 780 Golden Visas granted up to the end of October, with 573 of those granted since the abolition announcement was made.
Aside from the ban announcement, general interest in the programme has spiked in recent years.
Permits for investors remained under 1,000 per year from introduction in 2013 through to 2021.
But in 2022, they surged to over 2,000, and surpassed 3,200 in 2023.
Those who successfully acquire citizenship through the programme are not required to live in Spain and only have to be in the country for one day per year to maintain their status.
Opponents of the scheme say this loophole means economic benefits are not being realised,
The European Commission called on EU members to stop selling citizenship in this way in 2022.
It flagged concerns with money laundering, tax evasion and security, which it said ‘would be incompatible with EU norms’.
