Spain terminates the golden visa schemes, impacting Britons

Tuesday, April 9, 2024

Britons dreaming of relocating to sunny Spain for a life under the sun have encountered a setback as Spain announced the termination of its golden visa scheme. This move aligns Spain with other European Union nations that have previously concluded similar programs due to concerns over inflating the property market.

Initiated in 2013 to invigorate foreign investment during economic downturns, the golden visa scheme allowed non-EU investors to obtain a three-year work and residency permit by investing in real estate or a business within the country. Pedro Sánchez, Spain’s Socialist Prime Minister, supported by hard-left and Catalan separatist parties, revealed the decision to end the scheme in Seville.

He emphasized that the termination aims to combat “speculative investment” in the real estate sector that has barred many young individuals and families from accessing housing. Sánchez committed to taking necessary actions to ensure housing affordability.

The closure of this scheme follows the footsteps of Portugal and Ireland, which also discontinued their versions last year, after all three had experienced the detrimental effects of property bubbles. Over the past decade, the golden visas have attracted a significant number of investors from China and Russia. However, the European Commission has criticized these schemes, highlighting risks related to security, money laundering, and tax evasion.

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