There are three million empty homes on the Spanish mainland but that number is decreasing due to property investment from people from non EU countries. The new residency law in Spain allows non EU citizens to gain residency in Spain from spending €500.000 or more on property. Is this the end of the depressed Spanish property market?
The law will allow people to become resident in Spain and to travel freely within Europe in the 26 countries in the Schengen zone.
Buyers from China and Russia are being tempted into Spain by this great opportunity offered to them by the Spanish government. There is an opportunity to not only buy luxury property but to build up a property portfolio for future investment.
Early reports from Portugal, where this law was introduced just over a year ago, show that to date 318 residency permits have been issued there, totaling over €200 million in investment. The Portuguese government are forecasting that they will make €300 million by the end of 2013 which exceeds all expectations.
Greece is also offering this incentive on property investment while Malta offers citizenship for an investment of €650,000.
Property in China is at a premium so the Chinese are looking to invest their capital in the much cheaper European property market, and Europe will be welcoming them with open arms. Russian buyers are looking for something further from home so Spain fits the bill perfectly for them.
The Spanish are very excited to have the prospect of finally selling their homes to foreign investors, the market has been stagnant for so long, it will be a massive boost to the Spanish economy. Chinese and Russian translators are busy translating property details for these two specific markets.
Article previously published in International Business Times.