Spain has announced that it will abolish its golden visa to make more housing available for local citizens.
The golden visa was introduced in 2013, allowing foreigners who invested a minimum of €500 000 (R10 million) in real estate to secure residency and employment rights for up to three years.
Advocates for its elimination say it resulted in ahigh percentage of property investments, which hiked property prices, making it unaffordable for citizens.
“Today, 94 out of every 100 such visas are tied to real estate investment… in major cities that are experiencing a highly strained market and where it is nearly impossible to find suitable housing for those who are already residing, working, and contributing taxes there,” according to Spanish Prime Minister, Pedro Sanchez.
Real estate experts are voicing strong criticism against the abolishment of the golden visa, arguing that the measure overlooks the current housing shortage and targets foreigners instead of focusing on building more homes.
