One of the key reasons behind the anti-mass tourism protests this year was the lack of affordable housing which has been blamed on property speculation by foreign investors. | Majorca Daily Bulletin reporter

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Spain has finally secured a legal route to ending golden visas via property investment, with reports suggesting the ban could come into force by January 2025. The ban, which is still being debated, could also affect other investment pathways into popular destinations like Mallorca where non-resident British or ‘third country’ property owners are already having to negotiate the 90-day rule.

Under the current scheme: Short-stay or residence visa for foreigners making a significant capital investment, understood as:
An initial investment of at least 2 million euros in Spanish public debt securities, or 1 million euros in stocks or shares in Spanish companies undertaking actual business activities, or in investment or venture capital funds incorporated in Spain, or in bank deposits in Spanish financial institutions.

The purchase of unencumbered real estate for a minimum of 500,000 euros, (if the investment is made by a couple married in community of property, one of the spouses may obtain an investor visa, and the other spouse, a visa as a family member of the investor).

A business project in Spain considered to be of general interest, as regards the creation of jobs, the significant socio-economic impact on the geographical area in which the project is to be carried out, or its significant contribution to scientific or technological innovation. In this case, the visa may be obtained by a representative designated by the investor to manage the project.

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Investments made by legal persons will be accepted, provided that the legal person is not based in a tax haven, and that the investor holds, directly or indirectly, majority voting rights and the power to appoint or dismiss the majority of the members of the board of directors.
The following family members of the investor may also obtain the visa: The spouse or unmarried partner.
Children and adult children who are financially dependent on the investor and who have not created a family unit of their own.
Relatives in the ascending line in the investor’s care.
However, as things stand, the visa scheme could be scrapped as early as Januray, 2025.

The government’s reasoning is that the increased interest in this option has contributed to the country’s housing crisis. Therefore, in a bid to better manage the housing crisis, in April this year, Prime Minister Pedro Sanchez, announced that the country would terminate the scheme.
The visa scheme was created in 2013 by the conservative government of Mariano Rajoy.

It was seen as a way of attracting badly needed foreign investment in the wake of the eurozone crisis, which hit Spain’s property sector particularly hard. A total of 6,200 visas were issued until 2023 for investment in property, according to the organisation Transparency International, although other sources put the number higher.

Nearly half of beneficiaries of Spain’s Golden Visa - a total of 2,712 - were Chinese, according to Transparency International. One of the key reasons behind the anti-mass tourism protests this year was the lack of affordable housing which has been blamed on property speculation by foreign investors.