Spain is abolishing the golden visa program for non-EU residents, dealing a blow to British expatriates.

Spain is abolishing the "golden visa" program, which grants the right to temporary residence and work in the country for foreigners making significant investments in real estate. The end of the program will help make access to affordable housing a "right, not a speculative business," said Spanish Prime Minister Pedro Sánchez.

The program offers non-EU citizens who invest at least €500,000 in Spanish real estate without taking out a mortgage a special residence and work permit in the country for three years. Since the start of the "golden visa" program in 2013 until November 2022, Spain has issued nearly 5,000 permits, according to government data.

Chinese investors lead this list, followed by Russians who have invested over €3.4 billion, according to the 2023 Transparency International report. Spain is also one of the most popular destinations for British expatriates in Europe.

The measure does not have a significant impact on the real estate market, as less than 0.1% of the 4.5 million homes sold were purchased through this program, according to data from the real estate website Idealista. A spokesperson for the website stated that the housing issue in Spain is caused not by this program, but by a lack of supply and an increase in demand.

Spain's housing problem particularly affects its young population, who find it difficult to make the transition from education to the labor market, and this paired with a lack of affordable housing means that many Spaniards stay living at home with their parents for an order of magnitude longer than their peers in other parts of Europe, an OECD 2023 report showed.

Portugal recently revised its own "golden visa" program and excluded real estate investments to address its housing issue. The European Commission has long been calling for the termination of such programs, citing security threats.