Mariano Rajoy, the Spanish Prime Minister has announced that Spain “will” offer residency from non-European home buyers in the country above the purchase price of 500,000€, plans last year were put forward offering the so called “Golden Visa” to property buyers from outside the European Union where the threshold was initially thought to be as little as 160,000€. With the new law set to come into effect in July of this year, the prospect of an influx of foreign investment from countries such as Russia, China, South America and the United States – Estate Agents, Banking Intuitions and Property Developers have the possibility of expanding their market further afield giving fresh hope to the Spanish property market for the years to come.
Interest has been especially active in China and Russia where the middle and upper classes have grown ten fold in the past decade. The Golden Visa law now puts Spain behind Greece and Cyprus which has set the investment minimum at 250,000€ and 300,000€ respectively, but on even terms with neighbours Portugal.
Details have yet to be fully announced however the visa requirements are most likely to be given to those looking to purchase outright without the need to finance property. This will most probably give the owners close family the opportunity to apply for visas through the same loophole.
Critics emerged when the initial threshold of 160,000€ was first announced, however with this now set three times the limit local Estate Agents do not feel that it will directly effect the Costa Blanca. Terry Watts, managing director of the Resale Centre states “This will only effect a few of the urbanisations, if any, on the Costa Blanca south as property prices in the area are not at that level here. Also, looking today at locations such as Cabo Roig and La Zenia where you’ll find beach front villas at that price when they come on to the market, there simply aren’t those type of properties available for sale at the moment, so I can’t see this new law having any sort of affect here what so ever.”
What are your thoughts on the new law soon to be introduced? Would it affect your decision to purchase being outside of Europe? And do you think this is a good move by Spain? Post your comments below.