Spain Waves Goodbye to Golden Visas
Spain has officially bid farewell to its Golden Visa program, bringing a close to a popular scheme that granted residency permits to wealthy investors. The decision, announced in October 2022, aligns with the country’s efforts to curb real estate speculation and address concerns over the potential risks associated with the program.
A Farewell to Foreign Investment
The Spanish Golden Visa, introduced in 2013, offered residence permits to non-EU nationals who invested at least €500,000 in real estate, Spanish government bonds, or company shares. The scheme attracted significant foreign investment, particularly from China and Russia, but also raised concerns about money laundering, tax evasion, and property price inflation.
Portugal Revives Golden Visa Program
In a contrasting move, Portugal has announced the revival of its Golden Visa scheme, which was paused in January 2022 due to concerns over compliance with EU regulations. The revised program, effective from January 2023, includes stricter eligibility criteria and increased investment thresholds.
New Golden Visa Rules in Portugal
* Minimum investment increased from €350,000 to €500,000 for real estate in Lisbon, Porto, and coastal Algarve region.
* Alternative investment options include €1 million venture capital investment, €350,000 investment in research and development, or €250,000 donation to arts or culture.
* Requirement to maintain the investment for five years extended to eight years.
A Balancing Act
The contrasting approaches taken by Spain and Portugal reflect the ongoing debate over the merits of Golden Visa schemes. While they can attract foreign investment and stimulate the economy, concerns remain about their potential impact on housing affordability, property prices, and the risk of illegal activities.
Questions and Concerns
As the EU continues to grapple with the issue of Golden Visas, several questions and concerns remain:
- Will other EU countries follow Spain’s lead and abandon their Golden Visa programs?
- Are the stricter eligibility criteria and increased investment thresholds effective in mitigating the risks associated with Golden Visas?
- How can EU countries balance the need for foreign investment with concerns over housing affordability and the potential for misuse and abuse of Golden Visa schemes?
The ongoing evolution of Golden Visa programs in Europe will be closely watched by governments, investors, and policymakers alike. As the debate continues, it is crucial to find a balance between attracting foreign capital and ensuring the integrity and fairness of the residency permit system.
Kind regards
E. Thompson
