MADRID – Prime Minister Pedro Sánchez said Spain will scrap its so-called “golden visa” program, which grants residency to Britons and other foreigners who make large real estate investments in the country.
Sanchez said ending the program would help make access to affordable housing “a right, not a speculative business.”
The scheme issues special permits to non-EU citizens who invest at least €500,000 (£429,000) in Spanish property without a mortgage, allowing them to live and work in the country for three years.
“Today, 94 out of every 100 such visas are related to real estate investment… In large cities such as Barcelona, Madrid, Malaga, Alicante, Valencia or Palma de Mallorca, these Cities face a highly tight market and it’s nearly impossible to find the right people to house people who already live, work and pay taxes there,” Sanchez told reporters on Monday.
He added that the government would formally launch the process of scrapping the scheme at its weekly cabinet meeting on Tuesday, after studying a report submitted by the housing ministry.
Graham Hunt, a British real estate agent based in Valencia who sells properties to Britons and Americans seeking golden visas, said he predicted last year that Spain’s left-wing government would take such a step.
“We’ve been warning for years that this would happen. Thought it really was last year,” he told I. “Our business model may have to change. I’m waiting for details because it may only be in big cities.”
Since Brexit, many Britons have opted for the Golden Visa as the process is easier than many other routes for British citizens who want to move to Spain permanently.
Spain’s restrictions on golden visas will make it harder for Brits to find a way to live full-time under the Iberian sun.
However, it remains to be seen whether the new restrictions will only apply to large cities and not rural areas where there is no housing pressure.
Neighboring Portugal recently revised its own “golden visa” program and excluded real estate investment in response to the housing crisis.
Foreigners who want to obtain residency can still put money into investment funds.
The European Commission has long called for an end to all such schemes, citing security risks.
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