Dear Brits,
Close to my heart being a born and bred Londoner originally, I know the pain we Brits have been going through pre and post BREXIT, and all the scare stories surrounding the difficulties of investing now in Europe, and more pertinently in Spain. Of course, the below also applies to any other non-EU resident thinking of buying in Ibiza.
But do not despair, we have two bits of very good news for you, so please keep on reading!
GOLDEN VISA
The Spanish Golden Visa has become the gateway to Europe for thousands of applicants pursuing the European dream. Although Spain’s visa programme was initially a flop, as it fell well below expectations, and was marred with teething issues, an ambitious overhaul in 2015 made it extremely competitive compared with similar schemes offered by fellow EU countries. So much so, that this massive tweak enabled Spain to confidently overtake Portugal, becoming Europe’s leading Golden Visa supplier.
Spain’s Golden Visa programme allows affluent non-EU applicants (now including the Brits), and their dependents, unfettered access across Europe’s Schengen Area and to travel through all of Europe.
A Golden Visa enables you, and your family, to live and work in Spain (Europe). This visa guarantees Spanish residency, which eventually leads to Spanish citizenship (if wanted).
To obtain this Golden Visa at the same time as buying a property in Spain, you will need to invest at least €500,000.00 in one or more properties.
There is more good news in that this scheme is retrospective and so anyone who bought after 2013 can also apply!
CIRCUMVENTING THE ANTIQUATED MILITARY PERMIT LAWS
One of the biggest differences post-Brexit has to do with the military permit that applies to citizens from non-EU countries in certain ‘military sensitive’ areas of Spain, including Ibiza, whereby it is necessary to obtain such a permit when acquiring a property in any rustic area, or any urban area if that area was not designated urban by 1978.
This rather pointless bureaucratic procedure normally takes between 4 to 6 months on average and is specifically linked to the property you are buying, meaning that it cannot be applied for until you have decided on your chosen dream home.
This military permit comes from a pre-constitutional law from back in 1978 and is actually only compulsory when the transfer deed is finally registered at the property land registry office, and not technically when signing the deed at the Notary.
This new interpretation therefore can allow (subject to the notary’s green light) the signing and completion to take place, as long as the permit is attached to the deed in the next 18 months, so that when it is brought to the property registry office it is completed, and there are no problems with the registration.
This of course means there are no delays to the transaction, but there is one downside to this – if you need a mortgage you cannot use it, as no bank will accept this structure and so if you are acquiring using a mortgage, it sadly cannot be used.
Head of sales – Jason Ham