The measures are aimed at reactivating foreign demand and reducing Spain’s huge surplus of housing stock. They will be focused initially at the Russian and Asian markets whose interest in Spanish property has been steadily rising. The proposal is certain to attract great interest from these and many other emerging market countries as Spanish residency is subject to the Schengen agreement, which allows citizens to move freely around the 25-nation Schengen zone.
There is no confirmation yet as to the exact form that the measures may take, although it is expected that the law will come into force before the end of the year. It has been suggested that there will be a minimum required investment of approximately €160,000, the residency permit will remain valid even if the holder leaves the country as long as ownership of the assets is retained and the residency permit should apply to first degree relatives.
“We have been pushing for this law change for the last 12 months and are delighted to hear that it could soon be in force” commented Alexander Vaughan, Director of Lucas Fox. “We feel confident that these measures will go a long way to reactivate the sale of the Spanish property market on the Costas and help to clear the stock of properties.”
“We are primarily focused on international clients investing in Spain and over the last few years have invested a lot in strengthening our position within emerging markets such as Russia and China. Also we are currently in discussions with Spanish banks to help them sell their properties to the international market. As a result we are well placed to assist those looking to take advantage of these proposed legislative changes. Our dedicated international team have experience of both domestic markets and the Spanish market and understand the potential difficulties facing foreign investors and how we can overcome them.”