Spain Scraps 'Golden Visa' Program Amid Housing Crisis Pressure

Dr. Ana Jimena Barba, a young doctor, faced significant challenges when she began her career at a hospital in Madrid last year. Her initial decision to live with her parents outside the city in order to save for her own home was a prudent measure, given the exorbitant housing costs in the area. However, her plans were thwarted when she discovered that the properties in the village she sought to reside in were priced at more than 500,000 euros - an amount that is nearly 20 times higher than the average annual salary in Spain.

These inflated prices are partially attributed to the country’s “golden visa” program, which offers residency to wealthy foreigners who invest in real estate in Spain. This initiative has successfully attracted billions of euros in foreign investments over the past decade. However, it has also exacerbated the housing crisis for the local population, creating a situation where essential workers, like Dr. Barba, are unable to afford homes in their own communities.

Spain’s Response to the Housing Crisis

Facing mounting pressure to address the housing crisis, Spain announced this month that it will terminate its golden visa program. This decision reflects a broader trend across Europe, where several governments have opted to withdraw from similar initiatives in an effort to stabilize housing markets and protect the interests of their citizens.

Dr. Barba, who has been diligently working overtime to save for a home, expressed her frustration at the injustice of being priced out of her own community due to foreign investment, stating, “There’s nothing I can afford. If foreigners inflate the prices for those of us who live here, it’s an injustice.”