Spain is canceling the golden visa, but experts say this won't stop the influx of British expats.

In MADRID – Spain has decided to cancel its "golden visa" program in an effort to make housing more affordable, but this will not stop many Britons from buying property under the Spanish sun, as real estate experts warn. Spain's Minister of Housing, Isabel Rodriguez, stated that this scheme has led to increased speculation in the real estate market in cities like Barcelona and Madrid, contributing to rising housing prices and making it more difficult for locals to purchase homes.“These investments complicate the situation in the market and lead to rising prices. Finding affordable housing for ordinary Spaniards is becoming an impossible task. We are trying to stop this process,”- she noted at the press conference that took place on Tuesday.

The program has been attracting investors since 2013 with the aim of supporting the weak construction sector, and during this time, 14,500 visas have been issued, most of which were granted as a result of property purchases rather than business investments. The program provides special entry permits for non-EU citizens who invest at least 500,000 euros (£429,000) in Spanish real estate without a mortgage, allowing them to live and work in the country for three years. The main countries whose citizens have taken advantage of this program are:

• United Kingdom
• China
• Russia
• U.S.
• Ukraine
• Iran
• Venezuela
• Saudi Arabia

However, industry professionals claim that ending this scheme will not reduce the huge British demand for Spanish real estate.

“This visa was merely an additional incentive for the British after Brexit, but it has never been the main factor influencing their purchasing interest. The situation will not change.”- said Mark Staklin, a British real estate expert and manager of the Spanish Property Insight website.

About a third of the visas were issued in Barcelona, 19 percent in Madrid, 18 percent in Malaga, and 10 percent in Alicante. The British consistently remained the largest national group among those purchasing property in Spain.Last year, they acquired 8,100 houses or apartments, which accounted for 9.5 percent of the total sales.According to the Spanish Land Registry, Graham Hunt, a British real estate agent from Valencia, noted that the termination of the scheme is solely related to political factors.“This decision to suspend the visa program is purely a political move,”- He said.“These visas had a minimal impact on the housing market. The real changes in the market occurred due to Airbnb, as people rent out their homes to tourists, and locals can’t afford the high rental prices.”

He reported that his client from London is currently trying to finalize his visa application before the government closes this opportunity. Britons looking to move to Spain in the future may consider alternative options such as:

• visas for entrepreneurs
• digital nomads
• non-commercial visa

Neighboring Portugal recently reorganized its "golden visa" program, excluding real estate investments to address the housing crisis. The European Commission has repeatedly called for the cancellation of all such programs, citing potential security risks.