Spain scraps ‘golden visa’ scheme popular with British expats since Brexit
MADRID – Spain will scrap the so-called “golden visa” programme granting residency rights to British people and other foreigners who make large investments in property in the country, Prime Minister Pedro Sánchez has said.
Mr Sanchez said ending the scheme would help make access to affordable housing “a right instead of a speculative business”.
The programme awards non-EU citizens investing at least €500,000 (£429,000) in Spanish property, without taking out a mortgage, a special permit allowing them to live and work in the country for three years.
“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 that are facing a highly stressed market and where it’s almost impossible to find decent housing for those who already live, work and pay their taxes there,” Mr Sanchez told reporters on Monday.
He added that the government would formally launch the process to eliminate the scheme on Tuesday at the weekly cabinet meeting after studying a report submitted by the Housing Ministry.
Graham Hunt, a British estate agent based in Valencia who sells property to British and Americans seeking golden visas, said he had predicted Spain’s left-wing government would take this measure last year.
“We’ve been warning this would happen for ages. Thought it would be last year really,” he told i. “Might have to change our business model. I await details because it might be in big cities only.”
Since Brexit, many Britons have opted for golden visas as the process is easier than many of the other routes available to UK citizens who want to permanently move to Spain.
Spain’s clampdown on the golden visa will make it harder for Britons to find a way to live full time under the Iberian sun.
However, it remains to be seen if the new restrictions only apply to major cities, and not rural areas, which are not under such housing pressure.
Neighbouring Portugal has recently revamped its own “golden visa” scheme and excluded real-estate investment to tackle a housing crisis.
Foreigners who want to secure residency rights can still put their money into investment funds.
The European Commission has long called for an end to all such programmes, citing security risks.
