The stagnant domestic market is the motive behind Spain’s new plans to offer foreigners residency permits on the condition they buy houses worth more than €160,000.
In a bid to move their stash of unsold homes, Spain is planning to grant resident permits to overseas investors who purchase houses worth more than £128,500.
The ailing economy has left many Spaniards struggling to make ends meet. Thousands of homes have been repossessed by banks and their owners evicted because they are unable to pay off their mortgages.
More than 700,000 unsold houses are the result of the collapse of Spain’s real estate market back in 2008.
The desperate situation Spain faces is apparent in the comparatively low property price that foreigners will have to pay to get a resident permit.
Residency papers are only offered to foreigners buying houses worth more than €400,000 (£322,000) in Ireland and €500,000 (£402,000) in Portugal.
The plan will chiefly be aimed at the Chinese and Russian markets, and is expected to be approved in the next few weeks, according to Trade Ministry secretary Jaime Garcia-Legaz.
The venture moves the focus away from Nordic buyers, upon whom Spain have been concentrating their efforts of late.
The second home market in Spain is usually saturated with Brits and Germans, but following a substantial increase in total sales to Swedes, Spain had focused its efforts on Nordic buyers.
This has resulted in prime property being snapped up by foreign buyers from Scandinavia, the Netherlands, Belgium and Russia, according to an industry expert – hinting that Brits may be losing out.
What is the best way to send money to Spain?
The promise of a residency permit could be the push Brits need to get them on the road to investment. If you are considering buying a property in Spain, you will need to transfer money there – but how? It is advisable to compare the market before making any decisions to ensure that you find the cheapest way to send money.
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