The future of Spain’s Golden Visa program is uncertain as the Senate has blocked the proposed ban, sending it back to Congress for further review. The political divide between the Senate and Congress has led to delays in the decision-making process. However, it is still possible for the ban to be approved in early 2025, with the potential for it to come into effect by April 1. The ban was initially included as part of a bill focused on illegal squatting trials, leading to concerns over the legislative process.
Since the announcement of the potential Golden Visa ban, there has been a significant increase in applications for the program. Visa approvals have also risen, with a notable jump in approvals following the announcement of the ban. Chinese nationals have been the highest recipients of Golden Visas in Spain, followed by Russians and UK citizens. The United States leads in terms of investment contributions through the program, surpassing Chinese investments in the Spanish economy.
The Golden Visa program in Spain allows non-residents to obtain citizenship through investments in property, government bonds, or shares in Spanish companies. Critics of the program argue that it contributes to the housing crisis in Spain by encouraging foreign investors to purchase property, limiting availability for Spanish citizens. Additionally, the program allows for citizenship without requiring residency or significant presence in Spain, leading to concerns over unrealized economic benefits.
The European Commission has raised concerns about the sale of citizenship through Golden Visa programs, citing issues with money laundering, tax evasion, and security risks. In response to these concerns, several EU countries, including Ireland, Portugal, and the Netherlands, have ended their Golden Visa schemes. Albania, which planned to introduce a Golden Visa, suspended its plans following the European Commission’s warning. However, Malta, Italy, Greece, and Hungary still offer investment residency programs.
While the future of Spain’s Golden Visa program remains uncertain, the broader trend across Europe is a shift away from these types of schemes. The European Commission has called on EU governments to halt the sale of citizenship through investment programs, citing concerns about compliance with EU norms. Despite the increasing restrictions on Golden Visas, opportunities still exist for investors looking to obtain residency or citizenship in European countries. Spain’s decision on the fate of its Golden Visa program will have implications for individuals seeking to invest in the country for citizenship.