Spain is set to abolish its Golden Visa program, Prime Minister Pedro Sánchez announced to the press. This program has, until now, granted residency rights to foreigners who made significant investments in Spanish real estate.

The termination of this system aims to transform access to affordable housing from "a speculative activity to a right," emphasized the Spanish Socialist Prime Minister.

The Golden Visa program has been awarding residency to third-country nationals who invest a minimum of 500,000 euros in Spanish real estate without a mortgage, allowing them to live and work in Spain for three years.

"Currently, 94 out of every 100 such visas are linked to real estate investments (...) in major cities facing a pressured market, where it is almost impossible for those who already live, work, and pay taxes there to find decent housing," Sánchez pointed out.

He added that the Spanish government will start the process to abolish the regime in its weekly cabinet meeting on Tuesday, following a review of a related report submitted by the Ministry of Housing.

Neighboring Portugal recently revised its own Golden Visa system to exclude real estate investments in response to its housing crisis. Foreign nationals seeking residency rights can now invest their funds in investment funds instead.

The European Commission has long called for an end to such programs, citing security risks.