By Web Desk 
Spain has officially announced the end of its Golden Visa program, which previously granted residency to non-EU nationals who invested at least €500,000 in Spanish real estate. This move aims to address the country’s growing affordable housing crisis, as cities like Madrid, Barcelona, and other tourist hotspots face escalating housing pressures due to foreign investment inflating property prices.
The decision, spearheaded by Prime Minister Pedro Sánchez and his government, seeks to ensure housing is treated as a fundamental right rather than a speculative asset. The program had been active since 2013 and attracted thousands of investors, particularly from nations like China. Critics of the program argue that it disproportionately benefited wealthy foreign buyers at the expense of local residents struggling with soaring rents and limited housing availability. In areas such as the Balearic Islands, further rental caps have been introduced to curb price hikes.
Although celebrated by housing advocates, some experts believe the Golden Visa’s impact on the real estate market was minimal, accounting for less than 0.1% of property transactions since its inception. Real estate analysts suggest that addressing broader housing supply shortages would be more effective in stabilizing the market.
This policy change reflects a broader European trend, with countries like Portugal and the Netherlands also scaling back similar residency-by-investment programs. These moves come amidst increased scrutiny from the European Commission over security and transparency concerns associated with such schemes. The end of Spain’s Golden Visa marks a shift towards prioritizing sustainable housing policies over speculative foreign investments.