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.
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.
We have received a number of enquiries regarding the minimum stay requirement in Spain for the investor visa. Tax residency and citizenship in Spain are also questions that arise. In summary:
There is no minimum stay requirement. You can obtain the investor visa after completing on the property purchase(s) over €500,000. You do not need to spend time in Spain but you do need to be present (for a few days) to re-apply every two years.
You can keep renewing the investor visa if you retain the real estate investment. You can also apply for permanent residency. To do this you need to spend five years living in Spain. (ie over 6 months each year). Then you no longer need to retain the investment.
To apply for citizenship in Spain (and hence European citizenship allowing you to live and work anywhere in Europe) you need to demonstrate 10 years permanent residency.
You will not pay tax in Spain on worldwide income unless you are resident in Spain (ie live there more than six months a year).
Any questions please post below.
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.
The investor visa law has today been published in the official bulletin. So everything is now approved it just requires royal signature and will be entered into law hopefully in the coming days. That means you can then apply for the visa if you have bought a property. It will be retrospective so anybody who has bought recently can then apply.
Anybody considering buying in Spain to take advantage of this should look seriously now for best choice. It takes 1-2 months to complete a purchase and 10-20 days for the visa after that. We have received many enquiries for properties over the €500,000 limit and also for investment portfolios of several apartments under the €500,000 limit.
The new residency visa legislation was approved by the Spanish Senate yesterday without change to the draft proposal. Known as “Apoyo a los emprendedores y su internacionalización” it will come into effect on the day of its official publication in the state bulletin. Expected in a few weeks.
Any investor buying Spanish property now will safely qualify for the residency visa. A reminder of the key points:
- Minimum investment of €500,000
- Can be for more multiple properties
- Visa granted to all immediate family members
- No minimum stay requirement
- Applications processed in 20 days (or visa is automatically granted!)
- Freedom of travel throughout the Schengen countries in Europe
Investors interested in obtaining a Spanish residency visa through the purchase of a property please contact us. Please note we can only advise investors who are buying through our real estate agency La Vida Spain. You can visit our selection of qualifying real estate at our Spanish visa property website.
The draft investor visa legislation is set for debate in the Spanish parliament next week. The main points of the draft have already been published and discussed on this website and lawyers don’t expect too many changes to the draft. The government in Spain is keen to push this residency legislation through. That’s why they have a 20 day limit for response to any application – otherwise the visa is automatically issued.
Once passed we expect high demand, particularly from countries such as Russia, China and India. Likewise countries throughout the Middle East. I read recently that over 1000 Chinese buyers have invested in Cyprus in the last year to obtain the investor visa!
Considering Cyprus is 1500 miles from the centre of Europe but only 100 miles from Syria and unlike Spain is not part of the EU Schengen visa zone that’s quite an achievement. Especially as conditions for the residency visa in Cyprus include investing €30,000 per family member into a bank account in Cyprus in addition to a property purchase. Followers of the Cypriot banking crisis may agree that’s not for the faint hearted!
Still, it demonstrates the incredible demand for investor visas in Europe and bodes well for demand for the Spanish “golden visa”.
We have launched a website to help our clients looking specifically for property for the Spanish residency visa. The website covers six areas in Spain applicable for such real estate which is over the qualifying limit of €500,000. However we have also listed portfolio possibilities particularly in Murcia. The visa qualification allows multiple property purchases to make up the qualifying limit. As many of the “super distressed” bargains (sometimes one third the original price!) are lower priced apartments offered by the banks it offers an opportunity for investors looking for capital gain. Of course those seeking a permanent home would be more interested in our selection of villas which we can now offer in the Costa Blanca and Costa del Sol. Visa investors looking for a city home can browse our selection of apartments and houses in Barcelona and Madrid.
See the new website here: Property Visa Spain
Investors waiting for the approval of the legislation should not have too long to wait. It is in parliament currently for approval and our lawyers advise it could be September. Note that the legislation can backdate so anyone buying a property “recently” can apply. We would prefer to see this passed first and know the exact detail but one solution for clients could be our bank reepossesion properties. With these they are minimal deposit eg €1,000 – €3,000 and we can delay completion typically two or three months which should be more than enough time. So anybody keen to visit please get in touch soon. Many of the bank bargains are selling out and prices look to have turned in the last 6-9 months.