Leading luxury estate agency Lucas Fox has registered a tripling in enquiries from non-EU property investors following the recent enactment of Spain’s new law to fast track Residency permits. The legislation, which was made law at the end of September 2013, grants automatic residency to investors outside the European Union who invest half a million euros or more on property or land in Spain. Benefits include free movement within the European Shengen Zone and a straightforward renewal process.
The law is also retroactive, allowing those who have already invested half a million Euros or more on Spanish real estate to be granted residency. Lucas Fox expect to see a boost in sales activity as a result of the so-called ‘Golden Visa’ as their properties are located in desirable Mediterranean coastal area, traditionally popular with overseas buyers.
Lucas Fox co-founder Alexander Vaughan comments:
“We anticipate that the new law will have a very positive effect on the Spanish property market as a whole, increasing the number of transactions and gradually leading to more new property developments specifically targeted at residency investors”
In anticipation of the new law, Lucas Fox established a new company, ‘Residency in Spain’ and has been registering as many as 30 enquiries a day from non-EU potential buyers as well as establishing several negotiation agreements with agents in the Gar East. ‘Residency in Spain’ is a Joint Venture with leading Spanish Law firm ECIJA and offers tailor-made advice and support on obtaining residency through property as well as tax planning and associated legal and immigration issues.
Lucas Fox Head of Business Development Jason Ham explains
“The interest surrounding the anticipated approval of this new legislation has already generated a huge amount of interest particularly from the Middle East as well as China and South Africa. I believe these savvy buyers will eventually help to stimulate the market in the areas of Spain where the quality of property available is high, and in turn encourage developers to tailor new developments with these overseas buyers specifically in mind”
The residency law will:
- Enable investors to travel without a visa within the 26-country European “Schengen zone”
- Iinitially entitle investors to stay in Spain for a maximum of one year
- Entitle investors to obtain a further two-year Residency permit, renewable every 2 years
- Allow family re-unification. The spouse and children under 18 can apply for Residency at the same time as or after the initial application