Automatic Residency For Home Buyers?

[Captain Sensible]

An interesting article in Island Connections today, see http://www.islandconnections.eu/1000003/1000043/0/38326/daily-news-article.html

which says that the Spanish Government are considering legislation to give automatic residency to people who buy a property, worth over 160,000 euros in Spain.

[cockney]

This report has also appeared in the UK Daily Mail. I am not aware that you require residency in order to visit a property that you own so I am wondering do they mean some form of Citizenship which would be much more enticing.

[fifi]

Is it a way of enticing the Russians and Chinese to stay more than three months perhaps Cockney or maybe abolishing the need for a visa  for non EU nationals? Visa information here.... http://www.spainvac-ru.com/english/shorttermvisa.html  One article I read said that it is being done so that they can quickly offload thousands of properties on their books.

[fifi]

I have just come across another article on the subject in Canarias 7.http://www.canarias7.es/articulo.cfm?id=282516

Translated by Google (not a great translation but you will get the gist)

The government sees foreign buyers, especially Russians and Chinese as the solution to the housing stock that accumulates in Spain. To facilitate the process they will  change the Aliens Act to grant residence permits to foreigners that  buy a house for amounts exceeding € 160,000. In the Canary Islands, it is estimated that the housing stock at this price is 12,000.

This Tuesday will meet the relevant ministries to advance the policy change of the Aliens Act which aims to output the housing stock that accumulates in Spain and hindering the exit of the crisis. Given domestic demand unable to assume the brick on the outside there is a growing interest to which the Government wants to answer.

And the data support, at least in the Canaries. In the first half of this year foreign residents bought houses in Canarias 2376, up 17% from a year earlier. Meanwhile, the domestic market purchases only rose 4%, according to Development.

Now the process is to facilitate non-EU foreigners, as Russians, Chinese and even Americans, since in the case of the acquisition community can be done more easily, obtaining the NIE, tax identification document for foreigners.

In the Canary Islands, with a total stock of 70,000 properties (including new, used and banks) is estimated at about 15%, about 12,000 homes, exceeding 160,000 euros and are subject to the measure. A figure that makes optimistic realtors and developers. The president of the Association of Entrepreneurs, Developers and Investors de Canarias (Aempic), Ramón Pérez, Islands may be considered one of the most benefit from the measure, as well as southern and coastal areas of the peninsula. "We have homes, we have a climate and opportunity prices," he said.

[emmi]

If they (the Government) are expecting Russians, Chinese, Americans and other non EU citizens to invest in the Island then they'd better get their act together regarding the farcical lettings situation. 
Overseas investors usually expect to be able to make a return on their investment, and if they can't rent out, then what's the point?

[Ivemovedon]

You got to hand it to the Spanish theres no such thing as political correctness in their vocabulary. The wealthy granted residential status. And the plebs living in less than 160,000 remain unwanted aliens. They do know how to make you feel special lol.

[SheilaW]

You got to hand it to the Spanish theres no such thing as political correctness in their vocabulary. The wealthy granted residential status. And the plebs living in less than 160,000 remain unwanted aliens. They do know how to make you feel special lol.

Where do you get that from? If you're from the EU, you've got an automatic right to come here, to buy property if you like, to live here. The only proviso about living here is that you've got to either contribute to or be entirely independant of the welfare system. What's 'unwanted' about that? The rest of the world may need a visa just to get off the plane, and they need a residency permit to stay, which is a good deal harder to come by (normally) than our EU registration is.

I think it's a really good idea: a real income earner, hopefully. It should be a real boost for estate agents, accountants, lawyers, translators... at the very least.

[emmi]

LOL!  I said 

Overseas investors usually expect to be able to make a return on their investment, and if they can't rent out, then what's the point?

I just got the point.  Investors in property encouraged. Properties rented out.  Government slaps on big fines for said actions!  BINGO!  Two  in one.  !!

[fifi]

Yes I think you've got it Emmi.

Another article on the subject....


The Foreign Minister has announced plans to make it easier for foreigners to get residency permits if they buy a home in Spain.

Spain needs foreigners to buy its properties to help absorb the glut of new homes on the market. The problem is, it can be quite tricky for non-EU nationals to buy a home in Spain, thanks to all the bureaucratic hoops they are forced to jump through. The Government is now trying to make it easier for property investors from outside the EU to buy in Spain and get residency permits as a consequence.

The Spanish Foreign Minister, José Manuel García-Margallo (pictured above), announced the initiative to the Spanish Parliament this week, explaining that the Government will now fast track residency permits for Non-EU nationals who buy homes in Spain, and "simplify entry requirements." This will involve a close collaboration between the Foreign Ministry and the Ministry of Industry and Tourism, he said.

Justifying the new measures, García-Margallo said Spain needs foreigners to buy properties "of dubious purpose without foreign demand."

[duncolm]

Justifying the new measures, García-Margallo said Spain needs foreigners to buy properties "of dubious purpose without foreign demand."

I hope that's an unfortunate translation. Otherwise it just sounds like a money laundering opportunity...

[Ivemovedon]

You got to hand it to the Spanish theres no such thing as political correctness in their vocabulary. The wealthy granted residential status. And the plebs living in less than 160,000 remain unwanted aliens. They do know how to make you feel special lol.

Where do you get that from? If you're from the EU, you've got an automatic right to come here, to buy property if you like, to live here. The only proviso about living here is that you've got to either contribute to or be entirely independant of the welfare system. What's 'unwanted' about that? The rest of the world may need a visa just to get off the plane, and they need a residency permit to stay, which is a good deal harder to come by (normally) than our EU registration is.

I think it's a really good idea: a real income earner, hopefully. It should be a real boost for estate agents, accountants, lawyers, translators... at the very least.

So what we are saying here is that anyone who can't afford a house of more than 160,000 euros wether they're chinese or German is automatically branded a burden on the state and unable to pay their way?. You don't get automatic residency as far as i was aware you had to apply for it. This little enticer comes with the property and ability to afford more than 160,000. And who cares about lawyers and estate agents. You don't find many paupers in their circles.

[fifi]

Justifying the new measures, García-Margallo said Spain needs foreigners to buy properties "of dubious purpose without foreign demand."

I hope that's an unfortunate translation. Otherwise it just sounds like a money laundering opportunity...

Morning Duncolm. The article was written in English (Spanish property insight) but it may well be a poor translation.  I didnt understand what was meant by it myself.

[duncolm]

My guess is - 'hope these foreigners can be persuaded to buy the properties no one else wants at the price'

[SurfJames]

Justifying the new measures, García-Margallo said Spain needs foreigners to buy properties "of dubious purpose without foreign demand."

I hope that's an unfortunate translation. Otherwise it just sounds like a money laundering opportunity...

Spanish property has been the end stage of laundering. Hence that's the reason for the illegal licencing from the Town halls. Money poured into Spain from Mafiosi all around the World. It was used to purchase whole tower blocks etc, which were then sold onto tourists. Result - Dirty money has been changed into clean money.

I read an article about the whole operations a few years ago in the Sunday papers. The sums of money involved were staggering. The money was the proceeds of drug trafficking, prostitution and child abuse. It made horrible reading.
The really sad part was that buyers of apartments had no idea about the crime behind the buildings. A lot wouldn't have bought their holiday homes if they had known the facts.

[Ivemovedon]

I can't see how offering automatic residency is going to influence anyone whatever their nationality to buy a property specifically over the 160,000 mark. all Eu citizens residing in EU countries should be taxed the same so no gain there i think. Cheaper internal flights and a few other bits are in place i believe but would that influence you?. I don't think the oppertunity to remain in the country for more than a few months at a time would be an enticement to get their wallets out either  . As by their own crazy policies they have made investment in canarian property such a financial minefield they need to up their game and come up with something a bit better than that if they want to unload all that stagnant property.

[Canary Admin Services]

Spain isn't the first EU member to offer this scheme. Ireland and Portugal have similar schemes but in Ireland, you must purchase a property valued at 400.000€ or more. Basically it's a way of encouraging non-EU investors to purchase the thousands of available property in Spain and it is enticing because if you think about it, by getting residency in Spain, these investors will then have easy access to the rest of Europe.

[Spike On Q]

My little apartment in Pajara was for sale for 59,950. It's just gone up to 161,00 so there is bound to be a queue of "foreign" johnies lining up to get automatic Residencias - I know I would!