Explained: what does the spanish residency bill mean for buyers?
Photo credit: Dale Musselman
Foreigners invested €1.16 billion in Spanish property in the first quarter of 2013, 3 per cent lower than the first three months of 2012, according to the Bank of Spain. The figures follow international investment jumping 56 per cent in the final quarter of last year. Investment is hoped to surge again this year, as the country’s new residency bill is expected to come into force in autumn.
But what do the new laws mean for you? How long can you be granted residency for, and how much do you have to spend to be eligible?
As the bill is processed in the Congress of Deputies, Antonio Berdonces Vivancos, specialist solicitor in tax and property law for legal firm interlaw and British Honorary Consul in Murcia, explains the Spanish residency bill:
According to EU rules on visas and the Schengen Implementing Convention Agreement, the entry and residence in Spain shall be authorized for reasons of economic interest to non-EU citizens.
The spouse and children under 18, (or older disabled children) may also apply for permits at the same time or after the principal applicant.
Types of Permits
Residence visa for investors
It allows to legally living in Spain for at least one year.
Authorization is processed in Diplomatic Missions and Consular Spanish Offices and can be issued for one, two or multiple entries.
Visa applications shall be processed and notified within 10 working days, except in case of applicants subject to prior consultation.
Residence authorization for investors
It allows investors to live in Spain for two years, and after that period, it can be renewed for another two years and so on. You can ask for a renewal unless you have resided in Spain for less than six months a year.
Processing and granting residency is carried out by the Spanish Ministry of Foreign Affairs.
The deadline for giving a resolution will be 20 working days from the submission of the application.
If an answer is not provided within the mentioned period, the application shall be considered as accepted.
Long-term residence and Spanish nationality
After five years of continuous residence, you can obtain an unlimited residence permit.
Likewise, once completed ten years of residence, Spanish nationality can be requested.
In such cases, an effective justification of at least six months of residence shall be provided, (unless due cause exists).
Investment
Purchasing property in Spain with an investment equal or superior to €500,000 per application. It has to be formalized in a public deed, and every movement of funds used for the purchase shall be justified by legal means.
Types of Properties
You can buy:
a.-One or several properties.
b.-Of a residential, touristic, rural, commercial or industrial nature.
c.-Soil, developed land, buildings under construction or decrepit buildings.
Financing
The total investment must be free of liens or encumbrances at least on 500,000 €. Financing charge or encumbrance may exist over that amount.
Usage of property
There is no requirement that any property is intended for a specific use. Therefore, it is accepted to intend the property for leasing purposes totally or partially, or to use it for business activities of any kind.
Ownership of companies
It is accepted that the investment has been made through a legal person domiciled in a territory outside a tax haven whenever the natural applicant person has control over such legal person.
Other alternative investments
Initial investment equal to or higher than 2 million euro in Spanish government bonds or 1 million, whether it is in stocks or shares in Spanish companies, or bank deposits in Spanish banks.
Other administrative requirements:
a.-Not to reside unlawfully in Spain.
b.-To be over 18 years old.
c.-Not to have criminal records in Spain or in the country of residence.
d.-Not to be listed as unacceptable in Spain.
e.-To have a public insurance or private health insurance valid in Spain.
f.-To have enough economic resources for the applicant and his/her family.
g.- Authorization or visa processing fee.
For more information and legal advice on acquiring residency in Spain through property investment, visit www.ResidencySpain.com