Spain to scrap 'golden visa' scheme for non-EU citizens in blow to British expats

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Spain's decision to scrap its "golden visa" scheme for non-EU citizens is poised to shake up the landscape for foreign investors and British expats alike. The move, announced by Spanish Prime Minister Pedro Sanchez, marks a significant shift away from a program that has allowed foreigners to obtain residency rights through substantial real estate investments.

 

The "golden visa" program, which has been in place since 2013, offered residency permits to non-EU citizens who invested at least €500,000 in Spanish real estate. However, concerns have been raised about the impact of this scheme on Spain's housing market, particularly in major cities where affordable housing has become increasingly scarce.

 

Prime Minister Sanchez emphasized the need to prioritize access to affordable housing for residents over speculative real estate investments. He pointed out that a vast majority of the visas issued under the program were linked to real estate investments, exacerbating housing challenges in cities already facing high demand and limited supply.

 

While the scheme has attracted significant investment from Chinese and Russian nationals, it has also been popular among British expats seeking to establish residency in Spain. The move to end the program may have implications for British nationals with holiday homes in Spain, as it could affect their ability to stay in the country for extended periods without a visa.

 

However, the impact on the property market is expected to be minimal, with less than 0.1% of homes sold between 2013 and 2022 being purchased under the scheme. According to property experts, Spain's housing crisis is primarily driven by supply shortages and increased demand, rather than the "golden visa" program.

 

The decision to scrap the scheme aligns with broader efforts to address housing challenges in Spain and follows similar measures taken by Portugal to revamp its own "golden visa" program. The European Commission has also raised security concerns about such programs, advocating for their discontinuation.

 

As Spain moves away from the "golden visa" scheme, the focus is likely to shift towards addressing systemic issues in the housing market and ensuring access to affordable housing for residents. The decision reflects a commitment to prioritizing the needs of local communities and fostering sustainable development in the country.

 

10.04.24

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