Millionaire foreign investors to buy property in exchange for visas

 

Thousands of non-European Union high-net-worth individuals are expected soon to invest in luxury Spanish properties, in return for being granted permanent residency in Spain, according to international real estate experts.

In a bid to revitalise the property sector, and therefore the wider economy, the Spanish government announced last October that those who invest more than 500,000 euros in real estate will be allowed to stay indefinitely in Spain, and therefore the entire Schengen Area, which consists of a group of 26 European countries.

The law is due to be passed any day, but it is now more likely to come into force in September, after the summer break. We will not know the exact process until the law is enacted but it is expected to be an administrative one involving checking the applicant has all of the necessary documentation.

So, why is Spanish residency such an attractive prospect for so many foreign investors?

“The law is interesting because it provides a hassle-free, relatively cheap solution to non-EU clients who want to get European residency and travel rights for themselves and their families - it will allow investors to move freely across the Schengen zone,”

“In some cases it will be for lifestyle and education reasons, and in others it will be a combination of investment and diversification of risk. Chinese investors, for example, may use it as insurance against future instability in China.

“In all cases it will make it easier for investors to travel to Europe without the need to go through a complicated, lengthy visa application process.

“Out of the other areas that are currently offering similar schemes, Cyprus has lost a lot of credibility recently due to its banking crisis and Portugal is still regarded as Spain’s poorer cousin.

“The investment limits in the UK and France are much higher and Spain offers a much better year-round lifestyle. It will make the prospect of investing in Spanish property far more attractive to the wider global community and, as a result, will improve national confidence, which is much needed.”

Destinations

Naturally, it is expected that the areas of the country, such as Madrid, Barcelona, Ibiza and Mallorca, which have traditionally attracted high-end buyers will be those most likely to do well from this government initiative.

With this theory in mind, in southern Spain, it is probable that Marbella, which has been synonymous with a jet-set lifestyle since the 1960s, will receive a boost to its real estate sector.

“Marbella and Puerto Banús as well as other affluent areas offering desirable properties with a good potential rental income will benefit from the new residency law. Properties within luxury residential complexes, ski chalets in the Sierra Nevada, country houses in national parks, and historic buildings within cities popular with tourists, such as Seville and Granada, will be most in demand.”

Extracted from The Sur in English 

www.propertyoverseasgroup.com