New Spanish property and residency visa comes into effect

Buyers from EU member countries have traditionally been the mainstay of the real estate sector in areas such as Marbella, but the area could be opening up to new markets as a result of a recently introduced bill that offers Spanish Residency for those purchasing a property of €500,000 or above.

It means that from now on people from outside the European Union will also be able to benefit from its Schengen agreement on the free movement of its citizens if they have bought property here. The initiative follows similar ones in some of the other European countries, though while not opting for France’s stratospheric €10 million figure Spain has set the bar reasonably high at €500,000.

In recent years regions such as Marbella have already become highly favoured by wealthy Russian buyers, while the tradition of well-to-do Arab buyers from the Gulf States dates back to the 1970s and 80s, but it is expected that the new law regarding residency status will further stimulate interest from these markets, attracting also the growing middle classes in Russia and those parts of Eastern Europe that are not (yet) members of the European Union.

In addition, Spain is also likely to attract a growing number of middleclass to wealthy buyers and investors from rapidly developing countries in Latin America, with whom it shares cultural and linguistic ties. There is great potential in this regard, as a growing number of people from countries such as Argentina, Chile, Brazil and Colombia look to have a European pied à terre. In addition, the Chinese market, whose wealthier buyers and corporate investors have so far been focused primarily on the USA, Britain, France and regions such as Australia, is also likely to discover Spain as a country to invest in.

The authorities have been quick to recognise this potential, and in addition to those buying properties of €500,000 or over, have also extended the possibility of Spanish residency to people investing €1 million or more in the country – subject to medical and other background checks. The already cosmopolitan nature of Marbella and the Costa del Sol will be able to draw on an ever-wider range of potential residents and visitors in the future, giving the local real estate sector a boost and increasing foreign investment into the country.

By Federico Garcia