RESIDENCY IN SPAIN R e s i d e n c y i n S p a i n 1 A G E N D - - PowerPoint PPT Presentation
RESIDENCY IN SPAIN R e s i d e n c y i n S p a i n 1 A G E N D A 01. SPANISH GOLDEN VISA Spanish Golden Visa Features Visa Requirements 02. WHY INVESTING IN SPAIN Investing in Spain Barcelona: the city of now
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Acquisition of property or land, regardless if a real estate or commercial propery, within an investment threshold of over € 500,000 (taxes are not included in the investment threshold). Multiple investments are allowed. Additional costs for the investor are Taxes on the purchase which would range from 8 to 10% of the purchase price, and Notary and Property Registry fees which could range from 1 to 3% of the purchase price. The Golden Visa has a duration of 1 year and it can be converted, upon expiry, in the Investor’s Residence Permit. The Investor’s Residence Permit has an initial duration of 2 year and it is renewable for periods of 5 years as long as the investment is maintained. In general the investor entitlement to the Golden Visa/permit starts from the completion of the purchase (date of the purchase public deed) even if there is the possibility to apply for a Temporary investment visa of 6 MONTHS for those who have not yet formalized the purchase, but already have signed a reservation deposit agreement, or any other similar kind of agreement formalised in a public deed, which secures the future purchase. Once the purchase process has been completed, they will obtain the permit. TYPE OF INVESTMENT REQUIRED DURATION
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Family members of the investor may also apply for the Golden Visa/Investor Residence Permit under the same investment: including spouse (or person with a similar affective relationship) children under 18 y.o. (over 18 y.o. if economically dependent) and dependent ascendants of the investor. Both the investor and the beneficiary family members are entitled to work in Spain. No minimum stay in Spain is required neither during the first year (Visa) nor during the further periods of 2 and 5 years (Permit). Actually the investor does not even need to travel at least once to Spain and the extension can be made in Spain by a representative. Golden Visa/Investor’s Residence Permit allows unrestricted capacity to move within the “Schengen” area. This means that the holder of the Golden Visa / Investor Permit has the right to remain in Spain for an unlimited period of time, plus in the rest of the Schengen area for three months within each period of six months. The application for the Golden Visa can be submitted before the Spanish Consulate of the inversor’s country of residence. But the investor can also apply directly in Spain for the Investor’s Residence Permit while legally staying in Spain, on any kind of visa or visa exemption (for example as tourist). FAMILY AND WORK MINIMUM STAY MOBILITY APPLICATION
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The investment can be made through a legal entity provided that: i) The legal entity is not located in a tax haven. ii) The applicant individual has the majority of the voting rights in the company and enough faculties to appoint and dismiss the majority of the company directors. As the benefjciary of the Golden Visa is not required to stay a minimum time in Spain, his/her tax domicile will not be afgected: generally speaking, a non- Spanish national becomes Spanish tax resident when he/she stays longer than 183 days in Spain during any one calendar year. An only investment of EUR 500,000 will be suffjcient: however only one of the spouse will apply as investor and the other as family member. The Golden Visa does not entitle automatically to the Spanish citizenship but the golden visa holder can obtain either the permanent residence (indipendent from the investment) and the citizenship if he/she proves efgective residence (more than 183 days per year) during the legal period: 5 years for permanent residence and 10 years for citizenschip. There is no restriction to the use of the property by the investor: the property can be rented from the very fjrst moment. The property cannot be re-sold as the benefjciary would lose the right to reside. Golden Visa application should be processed by the consulates and granted within 10 days from fjling. Investor’s Residence Permit applications are processed electronically and granted within a maximum time limit of 20 days from fjling. INVESTMENT MADE BY LEGAL ENTITY TAX RESIDENCE OF THE INVESTOR INVESTMENT MADE BY A MARRIED COUPLE UNDER A COMMUNITY PROPERTY REGIME ACQUISITION OF SPANISH CITIZENSHIP PURPOSE OF THE INVESTMENT TIMING
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Not to have entered or stayed illegally in Spanish territory. Nor have been refused entry in any of the Schengen countries. Have sufficient economic means to cover personal and family living expenses (26.000 € for the applicant plus 7.000 € for each family member). Be 18 years or over, with no criminal record in Spain nor in the countries where the applicant has resided in the previous 5 years. Prove ownership of one or more immovable properties in Spain with an
Have public or private health insurance with an entity authorized to
minimum period of 1 year. Prove of investment must be made through Registry of Property certificate attesting ownership or, if the ownership title is not registered, via copy of acquisition public deed and proof of filing the deed in the Registry.
THE APPLICANT MUST FULFILL THE FOLLOWING REQUIREMENTS:
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At present, Spain is the third tourist destination in the world, behind France and the United States alone. During 2016, Spain received more than 75 million tourists, almost 10% more than the previous year. It is important to note that Spain is the world’s second country with the most World Heritage cities, the third in terms of natural areas declared Biosphere Reserves, and the country with the most Blue Flag beaches in the entire Northern Hemisphere. These are only a few examples of the attractions that Spain has to ofger to its visitors.
Number of visitors by origin
TOURISM & INTERNATIONAL FLIGHTS DATA
during 2016
85% for leisure
international fmights
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Spain holds 3 positions in TOP20 best world business schools.
Source: www.rankings.ft.com
Spain ranks in the 7th position of the World’s best health systems.
Source: World Health Organization
Spain’s airports, seaports, high-speed rail and motorways stand among the best in the world, representing an optimal resource to promote international trade & tourism.
World Output Advanced Economies United States Euro Area Germany France Italy Spain Japan United Kingdom 3.2 2.1 2.6 2.0 1.5 1.3 0.7 3.2 1.2 2.2 3.1 1.6 1.6 1.7 1.7 1.3 0.9 3.2 0.9 2.0 3.4 1.9 2.3 1.6 1.5 1.3 0.7 2.3 0.8 1.5 3.6 2.0 2.5 1.6 1.5 1.6 0.8 2.1 0.5 1.4 2015 2016 2017 2018 Estimated Projections Source: IMF GDP
The Spanish economy continues to show signs of strength. The National Institute of Statistics advanced data for the last quarter of 2016. GDP increased by 0.7% during the last quarter of the year, accumulating annual GDP growth
unemployment rate, which fell to its lowest level in the last 7 years (18.63%). In the European context, Spain is still one of the countries showing the greatest growth within the euro zone.
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Barcelona is an open, mixed, cosmopolitan and cross-cultural city that attracts visitors, talent, investments, technological and scientific innovation and avant- garde cultural proposals. To speak of Barcelona is to refer to the mobile capital of the world and to an international reference regarding the use of technologies as a means to develop intelligent management of the city. As a leading city in clinical and human health research, Barcelona is home to ninety research centers in which more than four hundred research groups are consolidated and dedicated to the field of life sciences. The Catalan capital is among the best cities in the world in the classifications
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The property market in Barcelona continued to grow signifjcantly during 2016 and is widely discussed as a European property investment ‘hotspot’. New homes are in high demand as are high-end luxury renovated apartments in the key central districts
buyers, who continue to drive sales. Interest for Barcelona as a place to invest remained steady from national and international buyers. The beachside district of Diagonal Mar is once again becoming Properties are mainly being bought for rental investment purposes as potential rental yields are higher than average. These types of investment properties are in demand by Northern European, Middle Eastern and Asian investors interested in
DEMAND
The growth of the economy, coupled with low fjnancing costs, good potential for profjtability from rents and capital growth will continue to drive sales throughout 2017. This upward trend is not limited only to new build homes; sales of second-hand properties will continue growing in 2017, fuelled by the return of mortgage credit and low interest rates. We are optimistic about the continuing property market recovery during 2017.
Source: CBRE, Datastream, European Central Bank EUROZONE PROPERTY YIELDS AND INTEREST RATES, 2007-2016
1 2 3 4 5 6 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Eurozone bond yields EURIBOR Five-year swap rate Eurozone property yields %
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In 2015, residential New Development projects started coming onto the market in Barcelona for the fjrst time since the property market crash. Through 2016 the release
needed new development property. In 2016, 50% of the properties sold by Lucas Fox Barcelona were in new development projects and we expect this percentage to maintain or most probably increase through 2017. 2017 will see the release of some large residential condominium projects in the city center and the Diagonal Mar area of the city. We expect these projects to be particularly interesting to investor clients and also clients looking to take advantage of the Golden Visa scheme. As well as these larger schemes there are a good number of smaller new development projects which are renovations of classic buildings in the Eixample and Old Town areas that will continue to feed the demand from international lifestyle investors. SUPPLY bases its fjgures on asking prices), property prices for property prices. The more prestigious, luxury districts of average prices between the end of Q2 2016 and the end of (between 6% and 8%) in the most sought-after areas of the city centre of Barcelona by the end of 2017 as the strong demand for new homes continues to outweigh supply. PRICES
NEW DEVELOPMENTS PIPELINE AVERAGE SALES PRICES PER BCN DISTRICTS
€/SQM Units €/SQM
1000 2000 3000 4000 5000 6000 7000
Gràcia Sarrià-Sant Gervasi Ciutat Vella Eixample Les Corts Sant Mar Barcelona City Average
Source: Lucas Fox Source: Idealista.com
984 940 864 551 19 192 336 849 200 400 600 800 1000 1200 1400 1600 2014 2015 2016 2017
Rest Lucas Fox
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The fjrst step is to negotiate with the owner the price, terms and conditions of sale. After your ofger has been accepted, the next step is normally to put down a reserve deposit to take the property ofg the market. The amount of the deposit varies depending on the price and other factors. The private contract will contain all of the relevant details such us a description of the property, purchase price and date of completion. At this stage the buyer will be expected to pay a deposit . Should the buyer decide to withdraw from the sale, the deposit will be lost. Non-Spanish buyer will need a Spanish tax number or NIE and a bank account in Spain. On the completion date, the balance of the purchase price and any fees payable by the buyer must be paid. The buyer is then issued with the public deed of conveyance in front of a Notary Public, who certifjes the property transfer, and a copy of the Public Deed will be passed to the tax
Prior to completion non Spanish Buyers will need a Spanish tax number or NIE and a bank account in Spain:
identification number that enables you to make financial transaction.
account for the final signing of the Public Deed (escritura de compraventa) in front of the Notary Public in Spain.
STEPS TO BUYING A HOUSE IN SPAIN STAGE 1: HOLDING DEPOSIT STAGE 2: PRIVATE CONTRACT STAGE 3: COMPLETION OF PUBLIC DEED
ADMINISTRATIVE REQUIREMENTS
EXAMPLE OF TOTAL COSTS TO BUY A TWO BEDROOM APARTMENT IN A NEW DEVELOPMENT AT A PRICE OF € 520,000 FOR A FAMILY OF FOUR
STAGE 1: Holding Deposit STAGE 2: Private Contract (10% of agreed purchase Price) STAGE 3: Completion of Public Deed VAT (10%) Stamp Duty (1,5%) (only applicable for New Development properties) Notary Fee Solicitors’ Fee (1%) € 6,000 to € 10,000 (deducted on next stage) € 52,000 € 52,000 € 7,800 € 2,000 € 5,200 GOLDEN VISA COSTS: RUNNING COSTS Local Taxes (IBI) Community Fee Non Residents Income Tax Wealth Tax (exemptions up to € 500,000) Property and Golden Visa package Expenses (including taxes, documents translation and property certifjcates) 0,2% Ratable Value of the Land € 300 - € 600 24% (if rented) Starting from 0,2% € 15,000 € 1,250 TOTAL PURCHASE & VISA COSTS: € 603,250
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REAL ESTATE AS A SMART INVESTMENT GDP GROWTH
PORTUGAL SPAIN
SPAIN AS A WORLD LEADING TOURIST DESTINATION AVERAGE TIME TO GET A VISA GDP PER CAPITA 2ND MOST IMPORTANT LANGUAGE BY NUMBER OF SPEAKERS
Source: INE. Eurostats, Idealista.com, Nationalencyklopein (estimates year 2010)
1 MONTH SPAIN SPAIN
€ 23,200 MILLION MILLION
SPANISH SPEAKERS PORTUGUESE SPEAKERS
1 YEAR PORTUGAL PORTUGAL € 17,300
Total Nights Spent at Tourist Accommodation (non-residents) PORTUGAL 38,897,000 SPAIN 269,418,000
BARCELONA PRICE GROWTH 2016 LISBON PRICE GROWTH 2016
0,9% 1,2% 1,6% 1,8% 2,7% 3,2% 3,5% 3,3% 3,6% 3,5% 3,3% 1,3% 0,4% 1,7% 1,5% 1,6% 1,5% 0,9% 1,0% 1,4%
Q1 20 14 Q2 20 14 Q3 20 14 Q4 20 14 Q1 20 15 Q2 20 15 Q3 20 15 Q4 20 15 Q1 20 16 Q2 20 16 Q3 20 16
Annual Growth
SPAIN PORTUG AL
0,8% 1,1%
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Modern fmats with terraces, infjnity pool and stunning sea, mountain and city views Capital growth of min of 20% during construction phase Bank guaranteed development – safe investment Completion Q3 2018 Parking and storage available for all units 58% of units sold in 3 months Instalment payment option - ideal for golden visa applicants
INVESTMENT HIGHLIGHTS RENTAL YIELD
UP TO
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Prime location in the centre of Barcelona Capital growth of min 10% during construction phase Completion Q3 2017 Limited number of units available
INVESTMENT HIGHLIGHTS RENTAL YIELD
UP TO
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Prime location of Eixample – next to Enric Granados street Capital growth of min 15% during the construction phase Completion Q3 2018 Communal garden of 300m2 – oasis in the city centre
INVESTMENT HIGHLIGHTS RENTAL YIELD
UP TO
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Stunning New Development located in Barcelona’s desirable Eixample district Key features Ultra-modern apartments designed by prestigious architect fjrm GCA Architects Modern, luxury kitchens, fully equipped with high-end appliances
connected to the rest of the city Easy access to the airport via nearby train and bus services
Gràcia with its designer stores and exclusive restaurants
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BCN2409 Apartment with a terrace in Barcelona’s Eixample Left area Key features
Key features
Key features
public transport Key features
115m2 / €635,000
period features
BCN2743 Apartment in Barcelona’s Gothic neighborhood 94m2 / €525,000 BCN2628 Brand new apartment at the heart of Barcelona 83m2 / €510,000 BCN2747 Luxury modern apartment in Barcelona’s exclusive Paseo de Gracia 129m2 / €799,000
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BCN2948 Renovated apartment with a terrace at the heart of Barcelona Key features
Key features
Key features
Key features
90m 2 / €595,000
public transport
BCN4380 Pristine new apartment in the heart of Barcelona 160m 2 / €1,050,000 BCN4324 Newly renovated apartment 95m 2 / €560,000 BCN4390 Spacious apartment with a decked terrace and period features 95m 2 / €530,000
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Exceptional development designed by the renowned Catalan architect Carlos Ferrater Key features Privileged location in the uptown area
A sensational luxury villa of 800 m2 With garage, gym, storage room and entertainment areas Fabulous garden with swimming pool One of Barcelona’s most exclusive and sought-after districts
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Unique luxury penthouse in a prestigious landmark building Key features tstanding luxury property Wonderful sea and city views Sold fully equipped and furnished Two separated terraces with views over Plaça Catalunya Near Barcelona’s best designer stores and exclusives restaurants
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Magnifjcient free standing villa to buy
Key features Designed by an architectural fjrm responsable of many celebrity and award-winning homes The villa sits on a generous 2,680 m
2
plot Spectacular garden with a unique 112 m2 designer swimming pool Located in the leafy parkland of Pedralbes One of the most exclusive location in the uptown area of Barcelona
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Luxury apartments in Casa Burés, a Modernista masterpiece in Barcelona’s Eixample district Key features e of the world’s most impressive and best preserved Modernista buildings Exquisitely refurbished properties including lofts, apartments and penthouses Fantastic communal facilities including a swimming pool, gym and home cinema
minutes from the airport Michelin star restaurants, designer stores and exclusive bars all within walking distance
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+27 21 762 2617 - spain@pamgolding.co.za