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The Spanish government is getting closer to finally cancelling the golden visa, some seven months after it was first announced.
The controversial golden visa grants non-EU nationals residency in Spain when they buy property worth €500,000, as well as other large investments.
Supporters of the scheme’s cancellation argue something must be done about the saturated property market in Spain, but critics suggest that banning luxury property purchases via the visa will do little to help struggling Spaniards and that the move was politically performative.
READ ALSO: Is Spain’s decision to axe golden visa about housing or politics?
Prime Minister Pedro Sánchez first announced the decision back in April but since then the government has found it tough to actually cancel the scheme. The news caused major headlines but it turns out that axing this controversial scheme has proven a lot harder than expected.
Spanish Housing Minister Isabel Rodríguez had wanted to include an amendment relating to the cancellation of golden visas in the country’s new land law, but it was withdrawn from the agenda in Congress as it did not have the necessary support to win a vote and move forward.
Sánchez’s government then looked for other bills with which it could ‘slip in’ the golden visa amendment but the fragile parliamentary majority meant it was difficult to do, especially as the opposition Partido Popular and Vox are both against the move.
But now, months later, Sánchez’s ruling Socialists (PSOE) may have finally found a way to put an end to golden visas by taking advantage of a law currently being processed by the Justice Committee.
The government has tacked on a series of amendments to the draft law on judicial efficiency measures and protection of the rights of consumers and users.
In fact, in order to cancel the visa, the government will actually leave several articles in the draft blank, mostly those that establish the conditions to qualify for the golden visa, according to reports from Europa Press.
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As The Local has previously reported, this particular law had previously been picked out as a potential route to getting rid of the visa some months ago, but there were doubts as to whether it would be successful owing to the over 1,000 other amendments attached to the legislation.
Now it seems the left-wing coalition government has found a way. During the committee debate, Sumar deputy Enrique Santiago said it was “extremely important” the golden visa was repealed and that it was a “very positive” step to take advantage of the draft bill in order to do so.
Reports suggest that applicants and family members who have applied prior to the law coming into force will have their applications respected.
READ ALSO: What the end of Spain’s golden visa means for foreigners
The golden visa cancellation draft was officially approved on October 30th without the support of PP or Vox deputies. The Commission gave the amendment the green light with 20 votes in favour, 17 against and no abstentions.
The bill will now continue its parliamentary process and will be debated in the Spanish Congress before moving on to the Senate.
Spanish media reports state if passed, the law could come into force in January 2025.
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Though the golden visa was primarily known as a way of buying EU residency via property purchases, it wasn’t the only way. Visas were also handed out to the third-country nationals who invested €1 million in shares in Spanish companies, or €2 million in government bonds, or those who transferred €1 million to a Spanish bank account. These options will also be eliminated once (and if) the golden visa is cancelled in January.
However, of the 15,450 Spanish golden visas granted since 2013, only 8 have been for the purchase of public debt, 167 for the purchase of shares, 371 for bank deposits, 214 for investment in funds and 114 for business projects, according to government data.
That means that 95 percent (14,576 golden visas) were based on the purchase of one or more Spanish properties worth more than half a million euros.
READ ALSO: Foreigners buy up homes in Spain in record numbers