Spain has officially put an end to its controversial “Golden Visa” programme and introduced fast-track trials for specific cases of property squatting. The Spanish Congress approved the new legislation, formally called the Organic Law on Measures for the Efficiency of the Public Justice Service, on 19th December. The law, which passed narrowly with 177 votes in favour and 170 against, will come into effect as specified in its publication in the Official State Gazette (BOE).
A contentious journey to approval
The law’s approval was far from smooth. It initially cleared Congress in November but was subsequently vetoed by the Senate, where the opposition People’s Party (PP) holds a majority. The PP argued that the law was poorly structured, likely to cause legal confusion, and criticised the government’s approach to its formulation. They preferred that each area of reform be addressed through separate legislative processes. However, Congress overturned the veto, clearing the way for the law to be enacted.
Key provisions of the new law
The legislation introduces several significant changes aimed at increasing the efficiency of Spain’s justice system, with a focus on property rights and immigration.
Streamlined eviction proceedings
One of the law’s headline provisions is the introduction of fast-track trials for cases involving squatters in Spain. Trespassing and property usurpation offences will now be handled under expedited procedures, with hearings expected to occur within 15 days. This amendment to the Criminal Procedure Law adds illegal occupation to the list of minor offences eligible for rapid processing.
While proponents view this as a necessary measure to combat squatting, critics argue that it falls short of addressing “inquiokupación”—situations where tenants deliberately stop paying rent and exploit legal delays to stay in properties.
Termination of golden visas
The law also brings an end to Spain’s Golden Visa programme. Established during Mariano Rajoy’s government, the programme granted residency to individuals investing in Spanish property, particularly those purchasing homes worth over €500,000. The decision to phase out this scheme was first announced by Prime Minister Pedro Sánchez in April. However, its final implementation was achieved through a closed-door amendment to the efficiency law, bypassing open debate. This move has been criticised for its lack of transparency, especially since it occurred in the absence of PP deputies following a natural disaster.
Impact and controversy
The new law is expected to significantly alter Spain’s legal landscape, particularly in property rights and immigration. Supporters argue that the measures address pressing issues, such as housing shortages and market manipulation. However, critics have raised concerns about the law’s limitations and the manner in which certain provisions were introduced. The phasing out of Golden Visas, for example, has sparked debate over its potential impact on foreign investment in Spain’s property market.
As Spain moves forward with these reforms, the country will need to balance the competing priorities of justice system efficiency, housing market stability, and the rights of property owners and tenants. Whether this law achieves its intended outcomes remains to be seen.
Addendum: The new legislation was published in the BOE on January 2, 2025, granting a three-month transition period for the Golden Visa scheme until April 3, 2025. This allows Spanish Golden Visa investors to submit applications up to that date.
