Real Estate Investment Visa
Real Estate Investment Spain
This option is the most popular among foreigners wishing to acquire Spanish residency as they tend to use the property or properties for one of the following options:
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To live in
Spain is known worldwide for its excellent climate, its culture, the Mediterranean diet and its excellent education system. That is why many foreigners decide to come to our country to enjoy these great advantages.
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Investment
According to the National Statistics Institute (INE), the price of housing has increased by 138.74% since 2016.
It is this upward trend that encourages foreigners to allocate part of their capital to acquire real estate in order to get a higher return and recover their investment in the medium term.
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Holiday Destination
Due to the fact that the Golden Visa allows the absence for long periods of time, many foreigners choose this option as a “second home” to enjoy their holidays in Spain.
Why choose this option?
It is the easiest to do since a purchase of one or several properties in Spain whose sum is equal to 500.000 € free of charges is required. Any amount higher than that can be perfectly financed.
It’s necessary for the investors to know that there is no need to buy just one property but more than one.
In order to confirm such purchase, the applicant must:
- Comply with the Legal Requirements.
- File the Purchase Title in a Public Deed.
- Present the “Registry Entry” provided by the Land Registry.
- Certify the payment of the appropriate taxes.
Is it necessary to have bought the property/properties before the application?
Is it necessary to have bought the property/properties before the application?
If you have not formalised the purchase of the property/properties a “Contrato de Arras”, or similar, may be filed together with a certificate from the Spanish financial institution confirming that the agreed amount as per the “pre-contract” has been deposited.
“Contrato de Arras” (Earnest Money Contract) is a private document whereby the buyer of a property delivers a certain amount of money to the seller to guarantee that it will honour its side of the contract, meaning the future purchase and sale.
Considering that the law does not state any “certain amount” to be deposited, it should be around 10% of the whole price of the property/properties but, ultimately, it is up to what both parties may agree on.
El objetivo principal de dicho contrato es proteger los intereses legales tanto del comprador como del vendedor: si el comprador incumple el contrato por su propia responsabilidad, el vendedor puede tomar esa cantidad como compensación. No obstante, si es el vendedor quien incumple el “Contrato de Arras” por su propia culpa, el comprador tiene derecho a reclamar el doble de la cantidad depositada.