Visa lure for foreigners
Spain is offering residency to overseas buyers, writes Peta Tomlinson
Who wants to buy a home in the world's worst-performing markets right now? Even at seemingly giveaway prices, what could possibly entice a sale in places where values have disintegrated and no sign of recovery appears anywhere on the horizon?
Throwing in freebies is a marketing ploy that can work, but free steak knives won't cut it. How about if the prize was residency?
Spain is the latest cash-strapped European country preparing to give away citizenships in return for property sales. In November, its government announced a plan to offer permanent residency to any foreigner buying a house or apartment worth more than €160,000 (HK$1.62 million). The move is an attempt to relieve a glut of stagnant housing stock across the country, estimated at more than 1 million homes.
The scheme is expected to be highly popular with non-European Union buyers, as Spanish residency would allow foreign nationals to freely move around the Schengen zone, which includes France, Germany, Sweden, Finland and the Netherlands.
It also undercuts similar schemes in other EU countries where foreigners can gain residency, with a property spend of €400,000 in Ireland, and €500,000 in Portugal.
Chinese and Russian buyers are expected to be keen on this fast track to Europe. However, Spain's proposal is for a residency visa only. Access to public services, such as health and education, will not be included, while foreigners will need to provide proof of income and the ability to support themselves.
