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So it is finally confirmed. Spain will give non-EU nationals a qualified (strings-attached) residency permit if they:
- Spend €500,000 or more on one residential property in Spain (buying 5 homes for €100,000 each isn’t valid)
- Buy €2 million of Spanish Government debt
- Invest in a business and create jobs (I’m not sure how big the investment has to be in this case, but I bet canny people will find lots of ways around it :?)
The €500,000 threshold is way above the average property price in Spain. It affects less than 5pc of the market, so it’s hardly going to help mop up the glut. You have to wonder what they are trying to achieve with this figure.
€2 million of Spanish Govt. bonds. Is that what qualified residency is worth? I’m not so sure.
What I am sure is that people will find lots of ways to game the law and find ways around it, as always.
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@mark wrote:
So it is finally confirmed. Spain will give non-EU nationals a qualified (strings-attached) residency permit if they:
- Spend €500,000 or more on one residential property in Spain (buying 5 homes for €100,000 each isn’t valid)
- Buy €2 million of Spanish Government debt
- Invest in a business and create jobs (I’m not sure how big the investment has to be in this case, but I bet canny people will find lots of ways around it :?)
The €500,000 threshold is way above the average property price in Spain. It affects less than 5pc of the market, so it’s hardly going to help mop up the glut. You have to wonder what they are trying to achieve with this figure.
€2 million of Spanish Govt. bonds. Is that what qualified residency is worth? I’m not so sure.
What I am sure is that people will find lots of ways to game the law and find ways around it, as always.
I’m assuming non-EU nationals have to do just one of the things on the list, not all of them.
I’m not sure how you can go about the last item without already having Spanish residency. I mean you can lend to a Spanish company or buy equity without being a resident, but create jobs? Surely that implies having some kind of executive role?
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Typical Spanish. Without thinking through.
A large percentage of Spanish homes on the books of Sareb/Banks etc are well below the €500K. So instead of say shifting say five properties they will shift only one. ( I am assuming that the Banks etc will respond to their request/inquiry for the property that they wish to buy, People with that kind of money are commercially wise and at this point, they will realise the wisdom of investing millions in a Country where people do not feel that they need to reply to email, telephone call, letters and all forms of communication is ignored with disdain)
If they start a business they will be spending time going from one Government department to other for months, pay very high social security cost, employ untrained,disinterested, work shy and unproductive staff.
Once you add all the above i.e. €500,000, Bonds and the business we are talking about serious money. People who have that kind of money can walk into any Country.
As the Spanish thinks sun only shines in Spain. These people can go to Spain for holidays as & when.
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A new day, a new rumour regarding the residency permits for non-EU nationals who buy a property above a certain budget.
Now I read that non-EU nationals who spend €500,000 or more on a home in Spain will only get a 2-year residency permit to begin with, according to the latest reports in the Spanish press. And there will be no work permit included, nor access to public health, say sources in the Ministry of Finance.
However, I gather it will be possible to get the permit extended to 5 years, after which it becomes permanent, always assuming that the property hasn’t been sold (in which case the permit is revoked).
The money spent on a home must come from abroad – using mortgage financing in Spain won’t wash.
There will also be background checks on things like criminal records.
Every day the story changes. Not exactly helpful for inspiring confidence. 🙄
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And spending 500,000 Euros on a property means the the government receives 50,000 Euros in taxes just to purchase the property, for which you get nothing back except sun!!
Non EU ‘s that have the ability to spend half a million euros on a property outside of their home country are not the sort of people that are desperate to be bribed for 2 years of sunshine, something that they probably get in their own country!
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@jp1: Besides the purchase tax etc of €50k, Spanish debt of €2 million has be bought plus employing “x” number of people.
You are spot on that the buyers from non EU country will not come for the sun. This is as a requirement of the northern Europeans.
People who have that kind funds at their disposal will be coming to UK (excluding residents from French colonies) for reasons English language, time zones, cosmopolitan, community links, children education, NHS, lower taxation, ( will get lower before the next election) communications, legal system a few.
Let us see how many of the above can be matched by Spain ?
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Apparently the Greek Government has started issuing residency permits to non-EU nationals who spend more than €250,000 on property. Greece offers 5 years residency, with the option of another 5-year extension for buyer plus wife and kids, as long as the investment continues.
Apparently Cyprus already offers 3 years, extendable in some cases to 7 years, for investments of €300,000 up.
Hungary is going to do something similar.
Spain is still mulling over a draft law, which some say will be ready in October.
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