Spain’s scheme attracting British expats has come to an end, shutting the door for for those looking to enjoy retirement in the country. Spain’s Golden Visa Programme was scrapped for good on April 3, having offered residency to non-EU citizens who invest a large amount of money in Spain. 

The system allowed thousands of non-EU citizens to gain Spanish residency in return for buying a home valued at more than £419,000 (€500,000). Launched in 2013, the scheme aimed to attract more foreign investment in a bid to boost the Spanish economy following the impact of the eurozone crisis. At the time, Spain was desperate to attract investors as they climbed out of the debt crisis.

Residency was also given to people who invested £1.7 million in Spanish public debt or £853,000 to companies in the country, investment funds or venture capital or bank deposits in financial institutions.

But most of the visas ended up linked to property purchases with job or project creation of any impact being minimal.

Analysts believe this may have been the catalyst for the scheme ending with many believing that some people took advantage of the scheme to launder money.

The scheme is also blamed for driving up house prices, particularly in key cities such as Madrid and Barcelona, as well as coastal tourist areas like the Balearic Islands, the Costa Blanca, and the Costa del Sol. This prompted protests against short-term rental platforms and rising housing costs across Spain.

Between 2013 and 2023, Spain issued 14,576 golden visas, which experts have linked to driving up house prices.

Average Spanish rents have doubled and house prices have swelled by over 44% in the past decade, according to data from property website Idealista, squeezing local residents out of the property market.

During a meeting of the Council of Ministers in April 2024, ministers reached a consensus which would look to end this practice of granting visas in exchange for the purchase of properties or other essential investment requirements.

The Spanish government stated that the end of the Golden Visa Programme is part of its broader effort to prioritize housing access for residents over speculative investment.