Luxury homes market on rise among foreigners guide, Luxurious property in Spain, Spanish houses
Luxury homes market on the rise among foreigners
6 April 2022
The percentage of foreigners interested in investing in the Spanish luxury real estate market continues to rise. Not even COVID-19 has slowed down this trend which, as of today, already stands at around 7% of sales of homes worth more than half a million euros, according to official sources from the Spanish Association of Registrars.
It is possible that one of the attractions, in addition to the climate and gastronomy, is the acquisition of Spanish residency through the Spanish Golden Visa; a procedure that ensures Spanish residency in exchange for an investment in the Spanish real estate market of at least 579,000 euros. In other words, luxury homes that can be purchased first-hand or built from the ground up through the purchase of land anywhere in Spain.
The British were the foreigners who bought the most properties in Alicante, Cordoba, Granada, Jaen, Malaga and Murcia. The French were in Girona, Tarragona and Valencia; and the Italians in A Coruña, Las Palmas and Santa Cruz de Tenerife. The largest volume of houses bought by foreigners was by Chinese nationals in Salamanca and Barcelona; in the Balearic Islands, by Germans; in Zamora, by Portuguese; and in Ourense, by Venezuelan nationals. In all the other provinces, Moroccans or Romanians.
One of the most prominent causes is the depreciation that luxury homes have suffered in some parts of Spain. Many of the buyers interested in the Spanish real estate market, be they EU or non-EU citizens, find real bargains in properties, for example, in Madrid, which have gone from 1 million to 700.000 euros.
As a result, sales of high-end homes have already increased by 40% during the years of the pandemic and, in many cases, investors are once again looking to buy their homes off-plan.
What is the new Entrepreneurs Law and what does it offer?
This new law provides for the granting of residence visas to those who make a substantial investment in the Spanish property market, i.e. more than 500.000 euros. In fact, this figure includes not only the purchase of an off-plan or already built property, but also the possibility of acquiring a plot of land and building a house which, in total and excluding possible renovations, must cost at least 579.000 euros.
It is a law that is aimed at investors, entrepreneurs, highly qualified professionals, researchers, family members and workers who carry out significant inter-company real estate movements in Spain.
The result has been a notable increase in the sale and purchase of luxury properties throughout Spain, both on the coast and inland, as well as in luxury residential areas.
In addition to real estate investment, the Law foresees that the investor carries out a business project with value for the general interest of the country as well as encompassing the following conditions:
– Creation of jobs.
– The carrying out of an investment with a socio-economic impact of relevance in the geographical area where the activity is to be carried out.
– Relevant contribution to scientific or technological innovation.
Therefore, this will also be considered “significant capital investment in the country”.
What documentation will you need to submit when applying for a visa or residency?
In addition to the generic documentation that must be provided for the rest of the visa or residence for investment applications (financial means, passport, application, medical insurance, certificate of no criminal record…), it will be necessary to add a report from the Directorate General for International Trade and Investment of the Ministry of Economy and Competitiveness that certifies that the business project is indeed being developed within the framework of the general interest.
The positive report is obtained by presenting a business plan detailing the purpose of the project and the reasons why it could be of value to the Spanish economy or society.
All this in the case of a business investment, because in the case of the acquisition of real estate, the requirements are as follows:
– Being 18+ years old.
– Having public or private health insurance by a company authorised to operate in Spain.
– Disposing of sufficient financial means, covering personal and family living expenses, for residency in Spain.
– Not having been refused entry into any of the Schengen countries.
– Not having entered or stayed illegally on Spanish territory.
– No existing criminal record in Spain, nor in the country of residence during the last 5 years.
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