Spain to offer residency to overseas buyers

The government of Spain is set to
offer residency permits to foreigners who spend €160,000 (£129,165) on a
property in the country in an attempt to boost the nation’s struggling property
market.

The Secretary of State for Trade
has insisted that the law change is necessary to reduce Spain’s unsold housing
stock. Keep reading to find out more.

Buying a property in Spain could lead to the right to work across the
EU

The Daily Telegraph reports that
Spain has between 700,000 and 1.1 million unsold new homes following the
collapse of its real estate market in 2008. Around a third of these are holiday
homes in coastal tourist areas.

Jaime Garcia-Legaz, Secretary of State for Trade, told a conference in
Madrid: “In coming weeks, we will start to reform the law regarding foreigners
to reactivate demand abroad and contribute toward reducing housing stock.”

The scheme may prove
unpopular with other European nations as it would also allow foreign buyers to
move around the 25-nation Schengen zone freely. This is because this agreement
allows holders of a residency permit of one country in the area to travel to –
though not work in – any other. Critics also believe it could pave the way
towards eligibility for a Spanish passport which would give property buyers the
right to live and work in all 27 EU member states.

The measure is
expected to imitate agreements already established in Portugal and Ireland. In
these countries, residency papers are issued in return for property investments
of €400,000 (£322,900) and €500,000 (£403,635) respectively.

However, Spain is
promising residency in return for investment in properties with a minimum value
of €160,000 (£129,165) – the national average property sale price. “It’s a
balanced figure,” the secretary of state for trade said. “Any lower
and it might create a massive demand for residence permits with housing as the
excuse to get them.”