Spain Ends Golden Visa Program to Tackle Housing Crisis

Spain has officially scrapped its golden visa program, ending residency benefits for non-EU citizens investing in real estate. The move, announced by the Spanish government, is aimed at easing the country’s growing housing shortage and curbing property speculation in major urban centers.

Under the now-terminated scheme, foreign nationals could gain Spanish residency by investing at least €500,000 in local property. The program, active since 2013, was introduced to attract foreign capital after the 2008 financial crisis. However, it has come under fire for driving up housing costs in cities like Madrid, Barcelona, Malaga, and Valencia.

Prime Minister Pedro Sánchez emphasized that housing must be treated as a basic right rather than a financial asset. The government said the decision is part of a broader housing reform plan to make homes more affordable for local residents.

Spain is currently facing a housing deficit that could reach 600,000 units in 2025. Rents have soared by over 80% in the past decade, and many young people and low-income families are unable to secure stable housing. The government’s updated policy includes steps to expand public housing, limit tourist rentals, and discourage speculative property investment.

With this reform, Spain joins a growing list of European countries reassessing investor visa programs in light of rising housing pressures.