What it means to take away the Golden Visa: Pedro Sánchez's latest attack on Spain's real estate sector

The measure will nip in the bud foreign investment in a very specific portfolio of flats and houses.

Pedro Sánchez's 'last' witticism in his particular war against the rich and against anyone who wants and can determine how their money is spent. The luxury real estate sector is about to receive one of the most considerable blows in recent years.

The announcement of the elimination of the so-called 'Golden Visa' will nip in the bud foreign investment in a very specific portfolio of flats and houses, constructions within the reach of very few and which had become an indisputable driving force in various sectors.

The fine print of the elimination will remain to be seen, as only the headline and a somewhat vague justification for the measure's broad scope have been announced. The Russians could no longer receive it since the start of the war in Ukraine, as of when it was to be determined. Pedro Sánchez's governmentthe Golden Visa will disappear forever.

The measure promoted by the People's Party The 2013 plan will come to an end after having been effective on almost 11,000 occasions, 11,000 foreign investments of more than 500,000 euros. More than 55 million euros have thus flowed into Spain from abroad, an amount that would be difficult to make up for without an alternative plan.

On Monday, 8 April, the next plan for the Pedro Sánchez's government against large foreign fortunes. The worst thing is that this group of people, which has invested and regularly invests so much in Spain, has been blamed for the current situation of rental prices and the sale and purchase of homes.

On a populist level the measure may find some justification, but on a real level the only thing it achieves is to attack a sector that generates jobs in various forms and that will now await future attacks or unsuccessful measures. After trying to decree a public rental price, the government is now closing the doors to a foreign investment that is vital for our current welfare society.

What is the Golden Visa

Back in 2013, Mariano Rajoy's central government put in place a mechanism through which foreigners could obtain a residence visa in Spain by meeting certain levels of investment.

Since then, and according to official data reported by various media, in 10 years, the number of people living with HIV and AIDS has increased by Golden Visa 500,000 has been granted to around 11,000 people. In other words, the total investment of these people has been at least more than 55 million euros only for the purchase of the property, to which other costs for services, building work and housework would have to be added later. The total amount, impossible to add up, could be exorbitant.

Who could receive the Golden Visa

Any foreign person who invested more than 500,000 euros in the purchase of a property located in Spain alone could initiate the procedures for the acquisition of this '...'.Golden Visa', a special visa.

The Russian population was one of the groups that benefited most from this measure initiated in 2013, but the outbreak of the war in Ukraine caused the government to prevent Russians from benefiting from this beneficial measure.

The 'Golden VisaIt was no longer just a benefit for a direct investment, but an opening for an investment that was certainly prolonged for several years, as the visa was granted for an initial period of two years, but extendable for periods of five years.

Over the last ten years, this measure has become a very effective instrument for attracting a much-needed level of investment in Spain, both for its economic muscle and as a showcase and tourist pole for certain sectors of the economy.

The unrealistic justification for removing the Golden Visa

Pedro Sánchez has announced that a report from the Ministry of Housing and Urban Agenda will be presented in which it is determined that these benefits will be eliminated for any type of foreign investment.

Justification, an unprecedented attack on the real estate sector. The President of the Government has linked unconnected concepts to try to make it seem that these millionaire investments are behind what he has defined as "inaccessibility of many young people and families to housing". The reality of the real estate market tells us professionals that foreign investors, young people and families are not looking for the same type of housing.

Every person who arrives in Spain with the Golden Visa is looking to acquire properties that are within the reach of very few investors. In other words: whoever invests more than 500,000 euros for a house is not depriving those buyers who spend between 100,000 and 200,000 euros of access to housing.

The reality that leads to Pedro Sánchez's government The elimination of the Golden Visa is the long list of failures of the Socialist government in the housing sector.

Both with We can in the past as now with Addthe Council of Ministers Pedro Sánchez's presidency has only sought to undermine both domestic and foreign investment capacity.

Blaming the holders of Golden Visa of Spain's real estate situation is an unprecedented attack on a very specific and concrete sector that lives a very particular situation within the national reality that the government is unable to control. It is this free market that is at stake with measures such as those announced by the government. Pedro Sánchez.

Will the current Golden Visa be lost?

That is all that remains to be done. Between the announcement of the measure and the announcement of further details, a period of time will elapse that will only begin to undermine Spain's chances of maintaining a certain level of foreign investment from very early on.

Convert Spain In a country in which the most select foreign investment is accused, singled out and blamed does not seem like a good idea. For the time being, only the elimination of the Golden Visa for real estate investments of more than 500,000 euros is known, and it is currently unknown when the Golden Visa for real estate investments of more than 500,000 euros will not be granted.

The fine print of eliminating the Golden Visa

Well, we will have to wait for the Council of Ministers, which will unveil the striking Housing report that will serve to revoke the Golden Visa. The only thing that is known is what Pedro Sánchez has announced.

We will have to keep an eye on what happens to the current and pending Golden Visas, as well as the exact date from which these special visas will no longer be granted.

Foreign investment will have to decide whether to maintain its economic level in Spain, after being blamed for the current situation in the real estate sector, or whether to opt for countries where such 'prestige' investments are sought and granted.