Spain’s “golden visa” scheme, a popular option for UK tourists and expats, has been abolished, significantly impacting British citizens. The decision, announced by Prime Minister Pedro Sanchez, means that Brits who invested £429,000 in Spanish property will no longer be able to live and work in Spain for three years under this visa.
The termination of the scheme is part of an effort to make housing more affordable for locals struggling with housing shortages. Sanchez stated, “Today, 94 out of every 100 such visas are linked to real estate investment in major cities like Barcelona, Madrid, Malaga, Alicante, Valencia, or Palma de Mallorca, where the market is highly stressed and it’s almost impossible to find decent housing for residents.”
Introduced by Mariano Rajoy’s conservative government in 2013, the “golden visa” allowed investors to obtain residency by purchasing properties worth €500,000 (£428,000) or more. By 2023, a total of 6,200 visas had been issued based on property investment, with nearly half (2,712) going to Chinese investors, according to Transparency International.
Sanchez emphasized that the government’s plan to end the scheme aims to ensure housing is a right, not just a business opportunity. He pointed out that most visas granted are linked to property purchases in high-demand areas like Madrid, Barcelona, Valencia, Malaga, Alicante, and the Balearic Islands, where the housing market is under significant pressure.
Francisco Inareta from the Idealista property portal noted, “The housing problem in Spain, both in terms of sales and rentals, is not caused by the Golden Visa, but by the increasing lack of supply and the accelerating growth in demand.”