A Change in Spanish Residency Laws will Affect Spain’s
Luxury Property Market

Spain has confirmed automatic residency rights on the 1st of January 2014 to foreigners
who spend at least €500,000 on property anywhere in the country, including Islands.

Spain’s new Residency Law was ratified by the Congress of Deputies and has been
approved by the Spanish senate. When the legislation has is signed by the King it will be
published in the official state gazette it will become law.

Under the new legislation non-EU citizens who invest/spend at least €500,000, with no
mortgage up to this amount, in residential or commercial property, including land, will be
able to live legally in Spain, travel within the 26-country Shengen area. Applicants are
entitled to buy multiple properties to meet the €500,000.

Applicants should be able to fulfill the following;

They should not have previously entered/stayed illegally in Spanish territory.
They should be aged 18 or over.
No criminal record
Not to have been refused entry in any Schengen country.
Have health insurance acceptable to the Spanish Authorities.
Have proof of financial ability to cover personal and family living expenses.
Be able to prove ownership of one or more immovable properties in Spain with an overall net
worth of at least EUR 500,000.  Financing is allowed for amounts over EUR 500,000.
This proof would be in the form  of a Property Registry certificate that  proves ownership of a
property, if the title is not yet registered then a copy of the public deed of purchase and
proof that the deed has been filed at the Registry.

Owners will be able to rent out their properties for private or commercial use.

The first step is to apply for a visa that allows them to live in Spain for one year. There is no
obligation to spend a minimum amount of time in Spain just be able to prove that they have
visited Spain at least once.

Once an investment has been made, and before the expiry of the first year’s visa, investors
can then apply for a residency permit which entitles them to live in Spain for two years,
renewable for another two years after that, as long as the investment threshold of €500,000
is maintained. There is no limit to the amount of times this two-year residency can be
renewed.

After 5 years of continuous residence in Spain, applicants can apply for an unlimited
residence permit. As is currently the case, after 10 years’ residency in Spain, one can apply
for Spanish nationality (provided that all other requirements are complied with, such as
being resident in the country for a minimum of 183 days per year).

The residency visa will:

Entitle investors to stay in Spain for a maximum of one year before having to renew their
permit and enable them unrestricted movement within the “Schengen” zone

To obtain a further two-year Residency permit, renewable every 2 years.  Investors will not
have to reside in Spain 183 days a year to renew the permit, thus allowing tax residency
outside of Spain.