Buying Property in Spain

These first phase units are therefore sold against a LOSS LEADER. Because 9 out of 10 vacation home buyers want to see a product already constructed, whilst the smart investors who make use of the attractive introduction prices.

As the construction progresses, the developers increase the prices of the units 6/8 times and up to 40% of the initial price. Those who purchase a home early do not get alone the chance to buy the best units in the development but also the most return on capital and rental potential.

Most investors then reintroduced the house back on the market once the construction is complete at the increased price or take their profits every year during the hugely popular summer period.

Another attractive advantage of purchasing a new home is the secure payment structure. New developments have been funded with institutional coverage of large banks and insurance companies and watertight contracts. Investment in new buildings is now just as safe as existing homes.

New homes offer risk free investment with payments that are 100% guaranteed by banks offering security for those who have the confidence to invest early.

Investing in new construction developments also offers favorable payment conditions for the buyer. Reservation costs are between € 3000- € 6000. When the construction of the development begins 30% of the price of the chosen house is paid and the remaining 70% is paid at the time that the development is completed about 6 to 18 months later. Many investors take advantage of it with the interesting mortgages on the Costa de Sol with low interest rates knowing that their original investment is growing.

Furthermore, all new developments are delivered with a 10-year warranty from the developer.

 

THE GOLDEN VISA

A brief resumé courtesy of Green Estate Investment.

The Spanish Government approved the new Law 14/2013 in 2013 with regard to residence permits for non EU investors. This states officially and legally that the process to apply for and obtain a residence permit will be made easier and quicker for investors in specific cases, one of them being the acquisition of a residential property for a minimum of 500,000€.

 

The Key to Europe for Non EU Investors

The so-called Golden Visa in Spain came into effect in 2014 and it establishes a less complicated process for non EU investors and citizens enabling them to come to Europe and enjoy free passage in all 26 countries in the Schengen Area, just like any other EU citizen. This basically signifies a Golden Visa for Europe.

 

The different cases in which investors can obtain a residence permit are listed under the article Nº 60 of the law, as per the following resumé.

 

1. Real Estate Investment

In the case of real estate investments, the purchase of a property in Spain is considered a meaningful equity investment provided that the investment is of 500,000€ or more for each applicant.

2. Business Project

A meaningful business project is that which is considered and proved to be of general interest. To be of general interest it needs to fulfil one of the following requisites:

• It creates employment (hospitality, catering, hotels, etc.)
• It has a positive socioeconomic impact in the geographical area
• It represents a meaningful contribution to the scientific and technological fields.

3. Public Debt Securities (Government Bonds), Bank Deposits, etc.

The applicant makes either an initial investment of at least two million Euros in public debt securities (Government Bonds), or an initial investment of at least one million Euros in Spanish company shares or equity participations, or in bank deposits in Spanish financial institutions.

In this way the process to obtain a residence permit as a non-EU investor has been simplified, so that the doors of Europe are now open for these investors. Therefore, now is the perfect time to make an investment in southern Spain and some areas are especially suitable for this, for example the Western Costa del Sol and Costa de la Luz, which are multicultural areas that already have all the necessary modern infrastructure and offer a unique combination of the best climate (over 300 days of sunshine a year) and enviable living and business condition.

Green Estate Investment in conjunction with our favourite lawyers would be happy to provide you with more specific information about the Golden Visa in Spain and personally advise you about the different possibilities.

NOTE: First of all, you get an ordinary 90-day visa so you can come to Spain to search for property, business, investment, etc., and once in Spain you sign a power of attorney (poder) giving your lawyer power to act on your behalf in the conveyancing and residency process.