There is no secret that to live in the country and have full rights, it is not obligatory to be its citizen. You can get a temporary residence permit or a permanent residence permit. A residence permit confirms the right of a foreigner or stateless person to live on the territory of a state. It often certifies one’s identity and entitles one to enter the country. To get the residence permit most foreign investors prefer to purchase real estate in Spain in 2022. Such a rational approach provides not only the possibility to feel in a European country like home, but to build a successful business.
The rights provided by residence permit in Spain
A residence permit gives incomparably more rights than a visa. A holder of the status can benefit from the following opportunities:
- live in the country,
- buy real estate,
- cross the border an unlimited number of times,
- conduct business,
- study at public or private institutions,
- use medical services,
- apply for a driver’s license and purchase a car,
- travel visa-free to Schengen countries.
All these activities allow experiencing no boundaries or limits in various spheres of life.
Types of real estate to invest in Spain
Real estate market in Spain starts to reawaken from the economic downturn caused by the COVID-19 pandemic. Still, Spain looks like a possible investment destination again as yields rise.
The highest demand is observed on real estate in resort areas, like the Balearic Islands, Costa Brava, Costa Dorada, Costa Blanca, Alicante, Benidorm and other cities on the coast. These locations offer luxury villas and stylish housing options of elite class.
The total transaction costs when purchasing real estate in Spain ranges from 10 to 15% of the value. This amount includes property transfer tax – from 6 to 10%, depending on the region, and the commission of the real estate agent. If it is a new property, value added tax and stamp duty is charged. For example, if the house is worth 500,000 €, the additional cost will be between 50,000 and 75,000 €.
The cost of real estate in Spain
The price on property varies dramatically depending on the location, year of construction, and necessary infrastructure. The average price on a square meter is about 1700 €. The resort areas are of higher demand and offer higher prices. If you want to purchase an apartment in a new development, you will have to pay more than 200,000 €. Premium villas on the seafront cost more than 1,000,000 €.
To enter the investment program, the cost of a property has to be not less than 500,000 €.
The life in Spain with residence permit
Every investor can name the most important advantages of the investment program for their very case. However, among the numerous benefits, businessmen highlight the right not to live in the country permanently. To extend the status of a temporary residence permit, an investor must spend 183 days a year in Spain. The rest of the time you can live in other European countries or where you like.
Getting the temporary residence permit, you are provided with the following options:
- pleasant warm climate, popular resorts, and welcoming citizens;
- standard of living above the European average;
- right to invest in European companies, stonks, and real estate;
- high quality medicine and education;
- opening accounts in Spanish banks.
The stages of becoming a citizen of Spain
The basic system of becoming a citizen includes the next stages:
- temporary residence permit
- permanent residence permit
- Spanish citizenship.
After 5 years of living in Spain, an investor and his family can obtain permanent residence permit. To do this the holder of the status must be in the country for at least 183 days a year. This status is almost no different from citizenship and opens up new horizons.
After another 5 years (and after a total of 10 years) you can apply for Spanish citizenship. You will need to prove uninterrupted residence, pass a basic language test and show a connection to the country.
Under the terms of the program you must keep the property within 5 years after obtaining a residence permit. After this it can be rented out or sold, returning the investment. If an investor will continue to own the property, he can extend the status of a residence permit an unlimited number of times.
Professional assistance in each deal
Although the investment program is quite simple and does not require any complicated steps, it is advisable to be in connection with professionals. The website Spain-Real.Estate provides qualified help in searching for appropriate housing options, monitoring benefits and drawbacks of villas and apartments, and joining the world of real estate investments.
Iskra Banović is our seasoned Editor-in-Chief at BlueFashion. She has been steering the website’s content and editorial direction since 2013. With a rich background in fashion design, Iskra’s expertise spans across fashion, interior design, beauty, lifestyle, travel, and culture.