The 24th of May, the Spanish government has approved the draft of a law which facilitates the process of obtaining residency in Spain for non-EU investors. The main focus of this law is to boost the Spanish economy. With regards to the property market, residency will be granted to those who purchase a property over 500.000€.
This new legislation is in line with the European regulation recently approved in this field and aims to grant temporary Residence Permits to those non EU citizens who:
1. Create employment by starting or investing in business Projects; those who invest in business Projects that might have a social-economic impact or from the point of view of scientific and technological innovation; as well as those who make relevant investments or create a business Project of general interest.
2. Invest through the acquisition of Houses located in Spain for a value of at least 500.000 € (minimum value of the investment that can be split in the acquisition of several properties).
3. Acquire public debt for value of 2.000.000 €.
The measure would be applicable to non EU citizens, who are legally in Spain, do not have a criminal records in Spain and/or in other countries since the last five years of residence, who have a public or private health insurance and count on sufficient economic means and who do not require external financing for the investment.
A central office will be created for those who apply for this type of Residence Permits, with the purposes of unifying and speeding up the application process. Besides other relevant novelties, it is worth mentioning the regulation of a new fiscal regimen applicable to entrepreneurs, by which different fiscal incentives in the IRPF (Income Tax) would be applied to the investment and financing of new companies. Furthermore, this new Law will be used as a vehicle to simplify and ease the procedures of creation and closing of Companies and businesses.
It should be taken into consideration that this draft is under study, thus it will be necessary to wait until the definitive Law is finally approved. It is expected that the approval will take place next autumn.