Spain to Scrap ‘Golden Visa Scheme’ for Foreign Property Buyers: Blow to Wealthy UK Expats

In a surprising move, Spain has announced the scrapping of its ‘golden visa scheme’, dealing a blow to wealthy UK expats looking to secure residency through property investment. Prime Minister Pedro Sanchez shared on Monday that putting an end to the scheme was necessary to prioritize affordable housing accessibility over speculative business practices.

The scheme, which was introduced in September 2013, granted non-EU citizens residency permits if they invested at least 500,000 euros in Spanish real estate without taking out a mortgage. However, Mr Sanchez pointed out that a majority of these visas were tied to real estate investments in major cities already struggling with housing shortages, making it difficult for local residents to find decent accommodation.

The decision to eliminate the scheme will be set in motion during Tuesday’s weekly cabinet meeting following a report from the Housing Ministry. This move aligns with the European Commission’s stance against such programmes, citing security concerns.

Interestingly, Spain’s neighbor, Portugal, has recently revamped its own ‘golden visa’ scheme, excluding real estate investment as a means to address its housing crisis. Instead, foreigners seeking residency rights can now invest in other avenues such as investment funds.

With Spain being a popular destination for British expats, the scrapping of the golden visa scheme will impact those looking to extend their stays beyond the 90-day limit for non-EU citizens. This move highlights the government’s commitment to addressing housing issues and ensuring fair access to accommodation for all residents.