HEALTHPLAN MAGAZINE

Many Brits dream of owning a property here in Spain, however, the UK’s departure from the EU following the Brexit referendum has meant that the process is no longer the formality it once was.

With around 40% of all property sales in Spain thought to be from UK buyers, it’s clear that making it easy for British investors to continue to purchase Spanish properties is very much on the agenda for the Spanish government.

The love affair is still there and recent statistics have shown that British buyers have not been deterred by Brexit, in fact, over the past 12 months, there has been a 141% rise in the number of Brits buying properties in Spain worth more than 500,000 Euros.

In April this year, UK property portal Rightmove reported that the level of demand for Spanish homes had increased with the number of enquiries for properties in Spain up 36% on April 2021.

Spain’s National Statistics Institute (NIE) also confirmed that the Spanish real estate market was alive and kicking once again reporting that 52,684 property transactions took place in January 2022, the highest figure for any January since 2008.

Spain’s Golden Visa scheme is driving property sales

But why are Brits purchasing properties for 500,000 euros or more?

Thanks to Brexit, Brits are no longer able to apply for residency here in Spain and stay for more than 90 days in any 180-day period. This is fine if you want to holiday here, but is not ideal if you want to purchase a holiday home here and stay for longer than 90 days or live here permanently.

However, all is not lost! British nationals can still secure permanent residency here via Spain’s visa scheme.

The main two options are:-

Apply for a Golden Visa - Like many other countries, Spain has its own Golden Visa scheme which allows those who wish to invest in the country to fast-track their residency status.

There are different thresholds which depend on the type of investment you are making. However, for real estate, the figure is 500,000 euros and this is the reason that the demand for homes above this mark are now in such demand. Many Brits are now looking to exploit the Golden Visa scheme to secure their residency status here in Spain.

Apply for a Non-lucrative Visa - The other option for those who do not have large amounts of money to invest is to apply for a non-lucrative visa.

Like the Golden Visa, this residency programme provides a ton of benefits including free movement within the Schengen Area, permanent residency after five years and the right to bring your family with you.

However, anyone wishing to apply for a non-lucrative visa will need to prove a regular income of €2,259.60 per month or €27,115.20 annually.

This figure would also need to be increased by 100% of the IPREM for each additional family member which would be €564.90 per month.

With the promise of free travel within the Schengen Area, the opportunity to work here, the chance to invest in a growth property market, while having access to some of the best international schools in Europe, it’s easy to see why Brits are still looking to get their foot in the door despite the doom and gloom of Brexit.

Mohammed Butt, office director at the Lucas Fox Barcelona office explains why the Golden Visa is now such a popular choice for those looking to set up home in Spain.

“We have seen a steep rise in UK investors buying property in Spain for their primary residence, or second home and applying for a Golden Visa.

“Before Brexit, many British second homeowners without Spanish residency were used to spending six months at a time at their homes in Spain, as they enjoyed some winter sun. But with the 90-day rule now being enforced more strictly by the Spanish authorities, such lengthy stays in Spain are no longer possible without residency.

“The 90 day rule applies across the EU, but if a individual wants to spend more than 90 days out of 180 in the EU, they will need to apply for some form of visa. The easiest way is to purchase a property and acquire a Golden Visa. The process is extremely straight forward and providing you have no criminal record from your home country and can demonstrate you can financially support yourself and dependants you will have no issues.

“We think 2022 could be a year of the golden visa frenzy for Brits as UK property prices continue to rise, driving them to buy very affordable properties in Spain, as primary or second homes. We have seen a number of clients who are releasing equity from their UK properties allowing them to free up capital and utilise to purchase a property in Spain.”

Source

https://www.propertyinvestortoday.co.uk/breaking-news/2022/7/property-surge-in-spain--golden-visas-drive-spanish-property-boom