The demand for housing in Spain is growing, despite the increase in interest rates on mortgage lending. Despite the fact that for any citizen of Spain, the current price level is almost beyond the threshold, if not already beyond it, for wealthy foreign buyers and investors, housing prices in the country are still very attractive.
Among European countries, Spain is generally one of the most profitable countries for purchases, including in terms of return on investment for investors. At the same time, the country has another important incentive for foreigners — a "Golden Visa", which can be obtained for the purchase of real estate in the country. This visa is issued for a long time, allows you to obtain a residence permit in the EU, Spanish citizenship, as well as to move freely around Europe.
Specifically, the conditions are as follows. Investors who are not EU citizens can obtain a visa and a residence permit in Spain for 2 years with the possibility of extension up to 5 years, and then apply for Spanish citizenship with an existing residence permit, if they have fulfilled all the necessary conditions for "naturalization".
But first, a little bit about the numbers. According to the Association of Real Estate Inspectors of Spain, home purchases in the country made by foreigners increased by 45% in 2022, reaching 88,000 transactions. However, this is still only 13% of the total number of transactions, although they are an extremely important factor for the development of the market. The transactions of foreigners are also among the most expensive in the country.
It is also worth noting that the average indicator for the country does not quite correctly convey the real picture of what is happening, because there are a number of regions of Spain that are a "playground" for foreign buyers and investors. For example, the Balearic Islands, where transactions with foreigners took a share of 34%, or Madrid and Barcelona.
We can also mention the Canary Islands, where the share of foreigners was 28.6%, the Valencian Community, where the share was 26.5%, as well as Alicante, where the share reached 41% at all. Such areas account for the bulk of real estate transactions, which were then converted into "Golden Visas". We are talking about 8,975 purchase transactions in 2022, which is 63% more than in 2021.
IDBO Consultants, a consulting firm engaged in mediation in real estate purchase procedures, emphasizes that the golden visa has become one of the most successful tools for attracting international buyers to Spain, including due to the fact that it can be sponsored for spouses and children. Such a visa is a residence permit not for one person, but for the whole family.