Spain is shaking things up with its Golden Visa program, a scheme granting residency permits to foreign investors. Previously, buying a swanky Spanish property was your golden ticket. However, the government is hitting pause on that option due to concerns about its impact on housing affordability.
From Property to Projects: A Shift in Focus
The Spanish government believes the real estate investment route in the Golden Visa program was fueling rising housing prices. To combat this, they’ve eliminated the property investment option altogether. Fear not, aspiring Spanish residents – the Golden Visa program isn’t disappearing entirely.
The new focus? Business projects. However, there’s a twist: these projects can’t contribute to further inflating housing prices. This means investing in ventures that support the broader Spanish economy, not just luxury developments that push locals out of the market.
Addressing Affordability Concerns
Spain, like many other countries, is grappling with a housing affordability crisis. By removing the real estate option and prioritizing business projects with minimal housing market impact, the Spanish government aims to ensure the Golden Visa program doesn’t worsen the situation.
Looking Ahead: A More Balanced Approach
This shift in the Golden Visa program reflects Spain’s attempt to attract foreign investment while fostering a more sustainable housing market. While the details of the new business project investment criteria are still emerging, it’s clear Spain is aiming for a more balanced approach, attracting foreign capital without sacrificing affordability for its citizens.
