Spain to issue residence permits for real estate purchases

Within the framework of a new law of entrepreneurs, the government of Spain will offer an opportunity to get residence permits to foreign citizens who have purchased real estate on the territory of Spain.

In order to stimulate investment inflow, the government will offer two-year residence permits to those wealthy foreigners who will invest not less than 500,000 euros in the real estate sector in Spain.

At the end of 2012, the head of el Partido Popular (the Conservative Party), declared the possibility of offering residence permits to foreigners who have bought real estate. However, at the beginning, the minimum investment sum was 160,000 euros. In the end, it has gone up to 500,000 euros.

The draft law was approved by the council of ministers on the 24 of May 2014.

Thus, Spain stimulates foreign investments. It is a method which already exists in several countries especially affected by real estate crisis, such as the USA, Ireland and Portugal.

This article of the law of entrepreneurs exists in order to eliminate inconveniences for foreign citizens who have to leave Spain every 90 days in order to prolong their visas. Such a scheme successfully functions in other countries, such as Portugal.

An investment in the real estate sector in Spain has to be not less than 500 thousand euros proceeding from a source outside of Spain. One will not be able to get a residence permit if the money used for purchasing properties proceeds from loans taken from Spanish organizations.

The draft law will urgently be brought into accord since it will come into effect on the 1 of January 2014 approximately.

Author’s note: the given law has been published and has come into effect.