Spain will give residence to foreigners who buy houses in the country
Spanish Government announced a plan that will allow to foreigners who buy a real estate worth more than 160 000 EUR to gain a permanent residence in the country. The Government insisted that such move is necessary in order to revive the stagnated property market in the country. The new scheme will also allow to the participants to travel in all of the 25 countries in the Schengen Zone as the Schengen agreement gives the right to people, who have residence permit for one of the participating countries to visit the other states without the need for visa. It is still unclear whether the residence privileges that the property owners have will be extended to their family members.
Although the details are yet to be agreed, the measure is expected to imitate agreements established in Portugal and Ireland earlier this year where residency papers are issued in return for property investments of 400,000 euros and 500,000 euros respectively. Hungary last month offered permanent residence to non-EU nationals if they bought at least 250,000 euros worth of a special issue bond.
Spain is however ready to undercut all those offers by giving a residency in return of only 160 000 EUR which is the average house pricing in the country. The new rules will mostly target the Chinese and the Russian markets where the demand for Spanish properties has been significant during the last several years.
Currently Spain has between 700 000 and 1 000 000 unsold houses on the market. Most of those houses are designed as holiday residence and are located in coastal areas. The domestic market experiences a deep stagnation period because of the global economic crisis, which has led to 26% unemployment rates.
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