The Golden Visa programme giving wealthy expats a fast track to live in Spain will be axed, the country’s Prime Minister has announced.
The scheme, which allows residency rights to foreigners who make large investments in real estate in the country, will be scrapped to increase access to affordable housing.
Spain’s Prime Minister, Pedro Sánchez, told reporters the aim is to make affordable housing “a right instead of a speculative business”.
The Golden Visa programme currently awards citizenship to non-EU citizens investing a minimum sum of 500,000 euros (£428,840) in Spanish real estate, without taking out a mortgage.
The Golden Visa granted citizenship to wealthy real estate investors
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This grants visitors the right to live and work in the country for a minimum of three years.
The Prime Minister announced: “Today, 94 out of every 100 such visas are linked to real estate investment… in major cities 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.”
The nation's housing issues have emerged from a growing gap between supply and demand for property, according to Idealista spokesperson Francisco Inareta.
"The measure announced today, which focuses on international buyers rather than encouraging new homes to come onto the market, is yet another misdiagnosis," they said.
Spain first introduced the Golden Visa scheme in September 2013 to encourage wealthy foreigners to boost the economy in the wake of the financial crisis.
The European Commission has long urged EU countries to put an end to such programmes, citing security risks.
It urged member states to introduce stricter checks amid growing fears that the programmes were inflating house prices. Fears grew that the scheme may also encourage criminals to launder cash in villas.
Golden Visas have proven massively popular with Britons since Brexit, allowing expats with holiday homes to circumvent rules limiting non-EU citizens to a 90-stay in Spain without a visa.
Data obtained by El Confidencial states that some 185 Britons have been granted these visas since Brexit.
The United Nations estimates that approximately 303,000 British nationals living in Spain in 2020, making it one of the most popular destinations for expats in Europe.
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Spain first introduced its Golden Visa programme in 2013
GETTYIt comes as Portugal recently revamps its own ‘golden visa’ programme and excluded real estate investments in a bid to tackle the housing crisis.
According to Get Golden Visa: "Portugal's [...] scheme went through some serious changes in October 2023."
"The changes have no retroactive effect on existing applications. However, the programme ceases to accept real estate purchases and real estate-related funds as qualifying investment options."
Other Portuguese funds are still eligible investments and incentivise expats to take up residency in the country.