It is well known that the property market in Spain has suffered over recent years with some areas in Spain seeing their properties decrease in value by up to 48%. Property agents are now reporting that there has been a steady increase in sales over the past year and that confidence is returning to the market.
It is reported that the property market will continue to grow in the most popular areas of Spain and that investors are returning to take advantage – snapping up property bargains knowing that they will get a good return on their investment.
The Spanish Parliament has also played a key role in restoring the property market by passing a new law that is aimed at encouraging non European Union investors to invest in the Spanish property market. The law grants residency to non European Union Nationals as long as they are spending €500,000 or more in property. This has shown a huge amount of interest from nationals from countries such as Russia, USA and China.
The area of Costa Blanca North with its beautiful coastline has attracted business from a lot of nationalities and modern, new build properties that are sea front or have sea views are the most popular sought after product. In the areas of Javea and Moraira it has been difficult to keep up with the demand for such products.
It still remains a buyer´s market with sellers increasingly having to be open to negotiation on asking prices. Most serious investors focus on the location and the quality as this will give them the best return on their investment. The return of international clients is the main reason why the market is now on its way to full recovery. The future is now looking positive …
EU PROPERTY INVESTORS AS NEW RESIDENCY RULES BECOME LAW
30 SEPTEMBER 2013
The long-anticipated legislation granting non-EU nationals automatic Spanish residency via property investments has now officially been made law. After having been approved by the Spanish Parliament, the law has been officially published in the state Gazette (BOE), opening the door to thousands of potential investors.
The new legislation states that investors outside of the European Union who spend half a million Euros or more on residential, commercial property or land in Spain will qualify for a visa allowing them to stay in Spain for 12 months (up from the current 90 days), plus a further two-year residency permit, renewable every two years.
The law is also retroactive, allowing those who have already invested half a million Euros or more on Spanish real estate to be granted residency. This is going to have a positive effect on the Spanish property market who are already seeing sales increase from investors keen to invest their money in property.
Key benefits of the new law are:
• initially entitle investors to stay in Spain for a maximum of one year (currently 90 days)
• entitle investors to obtain a further two-year Residency permit, renewable every 2 years as long as the investment threshold of 500, 000 Euros is maintained
• enable investors to travel without a visa within the 26-country European "Schengen zone”
• allow family re-unification. The spouse and children under 18 can apply for Residency at the same time as or after the initial application.