ARTICLE #15 – 29 SEPTEMBER, 2017
“9 TIPS ON WHY THE GOLDEN VISA SCHEME IS A WAY FORWARD TO SECURE RESIDENCY OR CITIZENSHIP IN SPAIN”
The Golden Visa scheme, which was introduced in Spain in 2013, is a perfect way to secure residency in Spain. Through economic investments, investors and wealthy individuals are able to attain the residency-through-investment as long as they meet these requirements. Since they have a legal framework in place and provide the certainty an applicant needs, such programs are very well thought of nowadays. There are myriad of reasons why investing in an “alternative residency” in Spain is a good idea. We have prepared 9 benefits for the Golden Visa Residency through an investment on Costa del Sol.
1. Freedom of movement
Imagine for a second that you are thinking of taking your partner for a shopping weekend in Paris or London. If you are an EU citizen, there is no problem; however, if you come from countries such as Russia, China or Middle Eastern countries you face a challenge: you need a visa and you may not make it in time before the weekend begins. Similarly, you could have an identical issue in the case of an urgent international business meeting. The residency-through-investment would allow you to move freely whenever you want.
2. Luxury of global lifestyle
Whilst your excitement for the weekend shopping reaches its zenith, in some cases delays in having the visa issued often forces people to cancel flights and accommodation bookings, so the luxury of a global lifestyle and world travel becomes available only to those citizen that do not require a visa.
3. Second Passport
Having a passport from any EU country gives security both to you and your family. With current rise in political and economic instability around the world, a citizenship through investment can give independence and freedom to those people who are frightened by religious, political or ethnic persecution. Should such need arise, a second passport is the best arrangement to be able to leave one’s home country and relocate anywhere within the EU. Citizenship in Spain can be applied for after 10 years from the day when your first visa was granted. The Marbella Club Hills team would be happy to assist its clients throughout the process.
4. Return on Investment
The Spanish residency program is currently one of the most attractive options, as Spain is becoming a well-established country with a relatively large economy. Every year the number of tourists visiting Spain is growing significantly.
Such influx of visitors has been creating an increase in lodging requirements and therefore pushing prices of Spanish property values higher. This in turn creates a great opportunity for property holders to rent out their properties during key parts of the year. Last year alone Spain hosted over 70 million tourists making Spain one of the top travel destinations in the world. Although, the prices of properties in Spain dropped following the financial crisis, they have been steadily recovering during the last 2 years. At Marbella Club Hills, we have a broad network of real estate agents and we know the real estate market very well and see the property market’s growth continuing. Of course all investments carry risks, but this is exactly why we are here to give you the advice you need.
Long, medium and often short-term investment horizons lead to significant capital gains for real estate.
5. Short Processing Time
The residence scheme is a very straightforward process, which only takes few weeks to complete.
6. Healthy and Optimal Property Prices
Following the financial crash, a new real estate market had emerged. As a consequence, the property market has been consolidating and values of properties naturally to a healthy level.
The residence-by-investment program requires a minimum sum of €500,000, which indirectly guarantees a minimum price level at which the property can be resold. The investment of course is secure if there is no drop in prices. The fact that the property could be resold after five years assures that an artificial investment bubble will not be created. The minimum investment amount of €500,000, which is set by law, guarantees a lower threshold, so if the property is bought at the minimum of €500,000, it is very unlikely that it will lose on the investment.
One of the main drivers for the Spanish residency program is the fact that Spain deems to be a secure destination in Europe, in our uncertain times, far away from terrorism and warfare.
8. Family and living
Most investors with golden visas may choose not to live in Spain full time, however they always have the option to either spend some part of the year here, or for the family members to travel freely around Europe. Once the investment is made and visas or residency cards granted, the ties with “the new country” begin to tighten. Children may eventually want to study or pursue future jobs in Spain or even Europe as the residency will give them the freedom to live, work and study in any European country. It is also worth mentioning that with many European universities tuition fees are lower for EU citizens.
9. Safe haven
Marbella is a safe haven for investment, as there are clear ownership laws within EU. This on its own attracts hundreds of millions of Euros of real estate investment every single year by investors from less secure parts of the world, but also those from the more established and stronger economic countries within the EU zone.
Spain has low mortgage rates as there is a fierce competition among Spanish banks, which makes real estate investment markedly more attractive, especially if combined with the incredible lifestyle of living in Marbella.
From all those perspective outlined above, investing in Marbella Club Hills is the least expensive and one of the most attractive investment that can secure residency in Spain. Marbella Club Hills not only promotes homes, but most of all, the prosperity in healthcare, education, culture and lifestyle.