After many debates, the new law was finally approved September 2013 resulting in non European Union nationals being granted residence permits in Spain when buying a property worth at least 500.000€.
In order to revive the Spanish economy and encourage investment in Spanish property this new law was proposed a while back joining other countries such as Portugal, Ireland, and Greece whom already offer residency by purchase of property.
In 2012 there was discussion of giving the Spanish residency to investors buying property worth over 160.000€, however many argued that this made Spain look cheap in comparison to Portugal that requires a minimum investment of 400.000€, Greece 250.000€ and Cyprus of 300.000€. After much discussion the figure rose to half a million Euros for residence rights, and now, it is finally approved.
Even though some might argue that the new law has arrived late, this is without a doubt magnificent news for Spain as it will boost the Spanish economy by encouraging investment in Spanish property, attracting capital from emerging and steady markets and economies.
Costa del Sol with the perfect Mediterranean climate, many up market holiday destinations, quality of life, and beautiful scenery will be especially attractive when welcoming rich foreign investors to take advantage of buying property in Spain while receiving residence rights.
The new law will be highly appealing to rich non-EU investors such as Russians, Chinese and Asian buyers who might need or want a European Visa and the possibility to move freely within the Schengen zone. The Costa del Sol has already seen a large increase of property purchases from the Russians, but the current Russian visas only permit stays of up to 90 days and the new residence permits would of course change that.
The residence permit obtained buy purchase of a property in Spain will not amount to a work permit or access to health or social security benefits. In order to receive the residence rights a property must be bought for over half a million Euros with money being brought from outside Spain. In order to receive the permit there should be no criminal record, private health insurance and proof to support oneself financially. The residence rights will be granted to the buyers, their spouses and children.