Spain‘s decision to terminate real estate investments as part of its Golden Visa Program fails to adequately address concerns regarding money laundering, according to recent reports. The Golden Visa Program, popular among international investors seeking residency in exchange for financial contributions, has faced criticism for facilitating illicit activities. Spain’s move to eliminate the real estate option follows similar actions by Portugal.
However, experts caution that merely removing this option does not eradicate the underlying issues. Transparency International, in a recent conference, highlighted the persistent risks associated with the program, including money laundering, corruption, and tax evasion. África Pinillos, head of Supervision at Sepblac, emphasized the ongoing vulnerability of the real estate sector to illicit capital inflows, particularly from countries like Russia and China.
Eka Rostomashvili, coordinator of Transparency International Spain, stressed the need for comprehensive risk assessment and mitigation measures across all Golden Visa Programs. She noted that while Portugal had already removed the real estate option, the problem persisted.
Furthermore, concerns have been raised about the effectiveness of existing controls, with intermediaries such as registrars and notaries failing to provide sufficient oversight.
In response, the Spanish government has proposed prohibiting investments that fuel housing price surges in exchange for residency under the Golden Visa Program.
Despite these efforts, experts warn of a broader trend toward lax standards among EU member states competing to attract investors, indicating that more stringent measures may be necessary to combat money laundering effectively.
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