The Congress of Deputies – the lower house of the Spanish parliament – has voted in favour of abolishing the Golden Visa programme, which will come as a major blow to many Brits wishing to settle in the country.
The programme, launched in 2013, has allowed hundreds of Brits to move in the post-Brexit era with minimal paperwork problems.
The proposal to end the Residency by Investment scheme of Spain was passed with 177 votes in favour and 170 against, according to Schengen.News.
The easiest way to get a Golden Visa – favoured by many Brits and other citizens outside the EU – was to buy a property which had to be valued at more than 500,000 euros (over £414,600).
The Senate (the upper house) had vetoed the initiative to abolish the Golden Visa Programme on December 2, however, after receiving an absolute majority in Congress, the veto was lifted.
The regulation is now ready to become effective once it is published in the Official State Gazette (BOE).
The regulation was at first approved by the Congress of Deputies in November and then moved forward in the parliamentary process upon reaching the Senate. The bill was batted back to Congress after the Popular Party (PP), holding a majority in the Spanish Senate, pushed through the veto.
Based on the committee report, the veto proposed by the PP and approved by the Senate argued a lack of adequate legislative technique and also a lack of planning and order, therefore leading to the simultaneous processing of two bills affecting the same laws and creating both confusion and a serious threat to legal certainty.
The PP party also argued that Spanish law “provides safeguards for citizens against disorganised and abusive actions by the executive powers”.
The party also claimed that “Parliament cannot passively accept all kinds of tactics and strategies that harm those it represents, nor approve poorly structured legislative containers that are amended repeatedly to correct inconsistencies, omissions, and contradictions characteristic of the chosen legislative approach,” Idealista wrote.
Critics argue that the policy has driven up property prices in Spain’s urban and coastal areas, making housing even less affordable for Spaniards in an already saturated market.
Others have warned that removing golden visas will do little to improve Spain’s housing affordability issues and suggest the move is largely symbolic.
Some Brits who have bought properties solely to qualify for the Golden Visa may choose to sell if they no longer plan to live in Spain full-time. Speaking to Express.co.uk in November, Nicky Kelvin, Editor at Large at The Points Guy, warned that Brits planning to retire in Spain may need to consider other visa options, such as the Non-Lucrative Visa.
Mr Kelvin said: “Some Brits might be put off by the change and choose to invest in Golden Visa programs in other countries, such as Greece, or Italy.”