Residency Spain



The Spanish Government is working on legal modifications that will allow foreigners to automatically receive the residence permit, if they buy a Spanish property of more than 500.000 euro.
These could be some key points of this new measure and explain how foreigners can currently buy a property in Spain.

    > Can foreigners buy a property in Spain? Do they need to comply with any type of special requirement: job, residence... to be able to buy a property in Spain at present time?
    To buy a property in Spain, the only thing they should have is the Foreigner Identification Number (NIE), which is a personal, exclusive and sequential number. They can personally ask for it or appoint some authorized representative to ask for it on their behalf in any Government Delegate or Sub-delegate's office, as well as in Foreign Offices.Nevertheless, when you want to buy a property, real estate's agencies can speed up this step. For instance, if you have previously decided which property would you like to buy, your solicitor can draw up an earnest money contract or deposit that will also speed up processing your NIE. In addition, a provision of taxes is also important.
    > Can i buy a property off plan or design directly and still qualify for permanent residency.
    In Short yes you can, the requirement is actually to invest a minimum of 500,000 euro and this is not restricted to built asset. You can invest in commercial, residential or agricultural as long as the investment is registered correctly. Our legal team will guide you through the procedures if off plan is required. We also work closely with land owners and project architects and managers to provide a complete service for those who require input to design. Your permit application and approval will not be delayed during this approach.
    > If a foreigner buys a property in Spain but keeps living in another country, it is compulsory to pay taxes in Spain?
    There is no requirement in relation to tax in Spain aside from associated buying taxes unless undertaking activity in Spain such as renting out investment property. Tax in this relation depends on structure of purchase for example personal or via company purchase. Each case should be considered on individual basis.

    Taxes regarding the purchase of properties are the following: VAT in case of new properties, ITP in case of second-hand properties, including appraisal, Notary, lawyers and registry of property fees. Other taxes are IBI (Real State Tax) or Rubbish Collection Tax. These taxes must be paid in Spain.

    In Spain, there is also a Tax for non-Residents (IRNR), which tax the incomes earned by Non-resident natural persons and entities, unless they are taxpayers of the Personal Income Tax (IRPF). The permanent residence of someone living in Spain will become clear when the person spends more than 183 days living in the country during the calendar year.

    However, everything will depend on whether citizens are subject to a tax liability in their own countries and on the existence of double taxation conventions. Therefore, regarding returns on property investments, we should set the tax base over the cadastral value and regarding leased properties, it should be done over the annual tax return. The general IRNR rate is 24%.
    > Will the Government only grant the permit of residence to the holder of the property or will also include his/her immediate family? Who could also benefit from it?
    The Spanish Government has now extended residency to cover members of the immediate family to include parents as well as siblings.

    > If the property is sold, will foreigners lose their residence permit?
    You will retain residency as long as you own the property and continue the investment.

    After 5 years of continued  temporary residency duly renewed a permanent visa can be applied for which will remove the need for ongoing temporary visa renewal. If investor requires CITIZENSHIP later this can be granted with proof of 10 years residency in Spain.
    > Can I work in Spain once i obtain my visa?
    Yes, you are permitted to work in Spain if so desired.
    > Can I sell my Investment Property ?
    Yes, as long as the 500,000 investment threshold is maintained during term of temporary visa you can sell property and purchase other property. Once permanent residency obtained after 5 years you can sell property and retain visa regardless.

    ResidencySpain are providing option that will allow clients to leverage from value after year 5 thus repatriating inital investment and freeing up cash. These options should be considered on case by case basis. 


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