La Vida Spain was awarded best international agent by Spanish banking group Banco Sabadell this month. La Vida Spain is one of the largest sellers of bank properties to the international market and is able to package portfolios of property for international investors seeking the golden visa in Spain. The investor visa rules allow multiple properties within the €500,000 limit and bank owned real estate offers the most distressed and discounted prices in Spain. Investors buying for residency and eventual citizenship can benefit from capital gains by buying now and holding for 5 or 10 years eventually selling when permanent residency or citizenship is obtained in Spain. Many of the properties we offer from the banks are discounted by 50% or more from their prices back in 2007.
Many of our clients ask about guaranteed rental income on their property investment as they intend minimal use of their property. This is hard to achieve in Spain. In fact we have not come across such an offering. Certainly not one from a reliable developer or source. However we have recently partnered with Portugal’s most prestigous golfing resort, established over 25 years. Here there is such a scheme for investments from €600,000. It offers a 5 year rental guarantee at 4%. Plus each year the owner can use the property personally for up to 8 weeks. The residency rules for the golden visa in Portugal are similar to those for Spain. €500,000 is still the minimum investment. After the first year buyers need to spend a minimum two weeks each year in Portugal to retain the investor visa. Citizenship can be applied for after six years residency. Portugal has also introduced recent tax rules for pensioners with zero tax for ten years on pension income and zero or reduced rates on certain other income. Follow this link for more information on the golden visa programme in Portugal where you can request details on the guaranteed rental investment on offer.
It looks set to be an interesting year in 2014 with Spain’s Golden Visa programme now live. There’s disappointment from many of our prospective clients that the investment limit was eventually set at €500,000 and not the €160,000 originally mentioned by the Spanish government. We launched our new website property visas spain to focus purely on properties over €500,000 or combinations of investment properties suitable for gaining the golden visa. The website covers all the key areas in Spain and it’s important for overseas investors to get initial advice as to where to buy and invest in Spain as everyone’s needs are different. Prices vary, types of property vary, climate and lifestyle is very different from cities to coastal regions. Choice will depend on your family, education, the language you speak (English/Spanish), universities, frequency of travel, European connections, business associations etc. Most real estate websites concentrate on their own town/region and international visa agents from your home countries will try to sell the most profitable product for them. So if you are thinking of investing for residency in Spain in the new year make sure you are talking to the right people and get the right independent advice from an international agent with extensive experience that covers all the areas Spain has to offer. Happy New Year!!
A European Union directive published in 2011 means anyone granted the golden investor visa for Spain will be able to live and work anywhere in the EU Schengen visa zone. Investors in Spanish property are first issued a one year residency visa when spending over €500,000 on a property purchase in Spain. After one year the visa can be renewed and again every every two years indefinetly. It is at that point, after the first 12 months, that the European residency rule will allow investors and their families to live and work anywhere in the Schengen visa zone in Europe, as long as the investment in Spain is maintained and the visa renewed every two years.
I returned from a real estate conference in Barcelona this week. How times have changed for the focus on investors in the last 10 years. It used to be the UK and other northern European buyers driving the demand pre credit crisis but in recent years the focus is on China and other developing economies. I was encouraged by conversations I had with banks, developers and agents. Five years ago the Spanish property market was on its knees. Prices since then have fallen typically 40%-50%. The banks have had to repossess real estate and subsequently sell at knockdown prices. Low priced property is being snapped up by European buyers but high end property purchases are being driven by international investors, particularly Russian and Chinese. Barcelona is showing some similarities with London (where prices have boomed in the last two years driven by overseas buyers). International investors seeing the investment potential (yield and growth) and moving in while prices are rock bottom. The new Spanish investor visa (entrereneur visa spain or golden visa spain as it is known) will add fuel to the fire for international buyers in Spain. Figures confirmed this week that the Spanish economy came out of two years of recession this quarter. Property here is starting to look cheap.
Everything was passed and published into law today. For the key points on what the investor visa has to offer see our property visa website dedicated to investor visa properties satisfying the qualifying limit. Please note these are key points and meant as a guide. Every individual should seek proper legal advice applicable to their own personal circumstances. La Vida Spain and our affiliated lawyers can provide this for anybody wishing to use our property finder service.
We have published the main details of the legislation for investors gaining residency through a property purchase in Spain. See the investor golden visa page. We expect this law to be passed with a few months. It is also retrospective so anyone buying now will qualify. It also takes typically three months to purchase a property in Spain. Investors looking to gain a visa are advised to start the process as soon as possible. Please contact our main office on +44 208 429 7115 for further details or to arrange visits and applications.