Spain has introduced a new law that offers residency permits to non-EU nationals in return for an investment of €500,000 or more in Spanish property.
The objective of the law is to attract entrepreneurs to Spain, and stimulate foreign investment in Spanish real estate, public debt, and job creation.
This law enables non-EU nationals to get qualified residency permits in return for investing in Spanish real estate (and other assets), leading to long-term residency in Spain if certain conditions are fulfilled. The key points of the draft law are summarized in this section.
Spanish residency, and the ability to travel freely in the European Schengen area (for 90 out of every 180 days), will be a major attraction for many non-EU investors. Added to which, Spanish property prices have crashed into bargain territory, creating some excellent investment opportunities. It’s an attractive combination of residency and bargain prices for investors from outside the EU.
The Golden Visa is a major plus, but foreign investors should not let the residency permit distract them from the most important consideration, which is to invest wisely
The residency permit is now just a formality for investors who satisfy the criteria, so investors should focus first and foremost on identifying the best investment opportunities.
Investors should also look to invest through accredited professionals with good reputations and a proven ability to deliver a full service that takes care of all the investors needs over the lifetime of the investment. Otherwise the investment could turn out to be a big headache.
It is a safe bet that residency permits will be used to market some toxic, overpriced real estate investments over the next few months and years. Many “Golden Visa” residency investors will be hoodwinked into overpaying for property because of the residency permits. Non-EU nationals interested in residency should be on their guard.