Interested in living in Europe? The much-anticipated Golden Visa scheme in Spain has just made the process easier for thousands of potential investors from the Middle East.
The legislation granting non-EU nationals automatic Spanish residency via property investments of more than half a million euros was officially made law in September, after having been approved by the Spanish parliament.
Gabriel Nadal, Managing Partner at the Spanish law firm ECIJA, which advises on property deals, explains the benefits of the new law: “Non-EU buyers who make an overall net investment above EUR500,000 (Dh2.5 million) in one or more immovable properties will be eligible for a new residence permit that allows them to enter and stay in Spain as long as the investment is maintained,” he tells GN Focus. ECIJA has formed a partnership with the Barcelona-based estate agent Lucas Fox called residencyinspain.com. The firm will help with immigration formalities for foreigners seeking to take advantage of the new laws.
“We anticipate that the new law will have a very positive effect on the Spanish property market, increasing the number of transactions and gradually leading to more new property developments specifically targeted at residency investors,” says Alexander Vaughan, cofounder of Lucas Fox. “So far, the strongest demand is from the Middle East, China and Russia.” Residencyinspain.com now gets more than 30 enquiries a day, with residents of India, South Africa and Brazil also showing interest.
Spain is the second most active property market in the Eurozone, according to the most recent report by the EU statistical office, Eurostat. The report says construction grew by 4.1 per cent in June compared to the same month in 2012.
Marc Pritchard, Sales and Marketing Manager for Taylor Wimpey España, a leading Spanish house builder, says the country’s property market has been “incredible” over the last 12 months. He says in a media release that there has been little new construction since 2008, keeping the market limited. “With such little construction being undertaken out here in Spain, what’s big is new-build.”
Other agents feel property developers will now begin tailoring projects to overseas buyers. “I believe [overseas] buyers will eventually help to stimulate the market in the areas of Spain where the quality of property available is high and in turn encourage developers to tailor new developments with these overseas buyers specifically in mind,” says Lucas Fox, Head of Business Development, Jason Ham.
According to ECIJA, investors can spend the required sum on residential or commercial property, or land in Spain. They will then qualify for a visa allowing them to stay in the country for 12 months (up from the current 90 days), and will be given a further two-year residency permit, renewable every two years. The law is also retroactive, allowing those who have bought property to be granted residency.
The first half a million euros must not be financed or mortgaged. Applicants must be able to prove the source of funds, have no criminal record and must never have been refused entry previously to a European country. They will also need to demonstrate private medical insurance and sufficient funds to support living in Spain.
