What is Spain’s ‘golden visa’ and what does the ban mean for UK nationals?

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Spain will end its “golden visa” programme this spring in a bid to address the country’s growing housing crisis.

So-called “golden visas” grant residency rights to foreign citizens through investments in real estate.

As Spain follows Portugal and Australia to scrap the scheme and help improve access to affordable housing for residents, what does the visa ban mean for Brits?

Read more: Is Spain introducing a tourist ban for UK visitors? What new rules mean for your holiday

Launched in 2013, the golden visa programme grants residency rights to non-EU citizens who make large investments in Spanish real estate.

Currently, foreigners who invest at least €500,000 (£420,405) in a property without taking out a mortgage are awarded a renewable residence permit, allowing them to live and work in the country for three years.

A golden visa can be renewed every five years granted “the right conditions are met”.

Applications submitted between now and 3 April will be processed according to the current golden visa regulations.

To apply, you must be a non-EU resident over 18 years old, demonstrate sufficient financial means and make a qualifying investment in Spanish real estate worth at least €500,000.

Spanish Prime Minister Pedro Sanchez confirmed in a January decree that the scheme would close for new applicants on 3 April 2025.

In April 2024, Mr Sanchez said: “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 European Commission has called for an end to such programmes, citing security risks.

Spain has long been a popular relocation destination for UK citizens looking to start new lives overseas or for sunny second homes.

Although current golden visa holders will retain their rights, it’s a blow to British expats who could formerly bypass EU stay limits.

Without the current permit, you are allowed to visit Spain for 90 days visa-free before having to apply for a residency or visa.

According to a government press release, from the start of the golden visa scheme in 2013 until November 2023, Spain issued 14,576 permits, with the main nationalities being China, Russia, the UK, the US, Ukraine, Iran, Venezuela and Mexico.

Data from the Spanish General Council of Notaries found that British buyers made up 9.6 per cent of property purchases in the first six months of 2023, with 284,037 Brits registered as living in Spain in the same year.

It is expected that many may move to a non-lucrative residence visa in the country when the golden visa scheme ends.

This visa allows people to reside in Spain without carrying out any gainful work or professional activity, provided that the applicant can prove they have sufficient and guaranteed means to live.

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Source: independent.co.uk