Spanish property: buying into the hype
SINCE news broke late last year that the Spanish market intended to offer ‘residency status’ to those investors buying a home for more than 160,000 euros in the country, there has been quite a lot of hype surrounding the market. As always, cashy was there to snoop out the facts from fiction and bring you the answers you want. We sat down with Kyero.com CEO Martin Dell to get the latest developments…
What can non-EU investors such as Egyptian or Lebanese nationals expect from their property investment in Spain? Do they qualify for a Spanish passport? The proposed legislation is expected to be along similar lines to the Portuguese law for non-EU residents, according to some reports. Immediate qualification for a passport is not on the agenda, but that’s not to say residency permits could not be the first step in that process. I don’t think the plan is to boost the naturalised population here. This is purely and simply about selling property so I wouldn’t expect it to be an issue, at least in the short term. I would have thought, as with the Portuguese residency permit, that it would be valid for a period, about five years, and would then need renewing.
What are the limitations of this investment and their EU residency status? That is yet to be decided but the plans on the table are that residency permits will be offered to non-EU buyers above the 160,000 euros threshold. The residency permits will allow holders to travel freely in the Schengen area and enjoy the benefits of Spanish citizenship without actually being a Spanish citizen. We are still waiting to see how this pans out though as Spain’s Trade Secretary Jaime Garcia-Legaz has been quiet on the subject recently.
If their property is sold, will they still retain their residency status? I wouldn’t expect that to be the case but it is yet to be decided. I am assuming it is only going to be valid for as long as anyone actually owns a property in the country but we will have to wait and see.
Is there likely to now be a property 'boom'? Has the time to invest already passed? It’s still early days as the law is yet to be passed by the Spanish Government so there is plenty of time to research areas and properties online. We know many agents have already received a lot of enquiries from outside of the EU but some of that is normal. We would expect a spike in interest if the law is passed. Spain is a fantastic country with some excellent properties which are already being snapped-up by other EU residents but our feeling is that there are plenty of great villas and apartments to go around.
Pic credit: freedigitalphotos.net
ARE you planning to invest in property in Europe? Will the residency status law tempt you to look at Spain? Leave a comment below!