Golden Visas are particularly popular with Chinese Buyers

Golden Visas issued in Portugal were particularly popular with Chinese property investors. Of the 772 Golden Visas issued by Portugal since their introduction in autumn 2012, an astonishing 612 visas were snapped up by Chinese nationals, with an additional 400 buyers still waiting for theirs on an ever-increasing waiting list.
 
This year, a similar law will come into effect in Spain and many estate agents believe it will transform the Spanish property market, as the visas will enable more Asian, Middle Eastern and Russian buyers to purchase a permanent home at the Costas. Marbella in particular should benefit from this trend, as discerning buyers with deep pockets prefer the type of prime locations and luxury properties the Costa del Sol’s most famous resort has to offer.

Golden residency permits allow non-EU nationals to move freely within Schengen countries for short periods without the need to produce a visa. They do, however, need to make an investment of at least EUR 500,000 to qualify for their permit.

Laughing all the way to the bank

Portugal’s municipal coffers benefited greatly from the Golden Visa’s popularity, for it netted the country around EUR 464 million in foreign investment, according to data published by the Ministry of Foreign Affairs.

Preventing abuse of the new law

Critics have pointed out that the visa may attract rather unwanted elements from the criminal world, as it is the perfect vehicle for money laundering. In Portugal the system has already failed, for a Chinese criminal, who had received his Golden Visa one month before Interpol had a chance to put out an International Arrest Warrant, was recently arrested.

This has raised many questions in Spain, for what will happen in Marbella, where the Town Hall, the Mayor and tourism board have worked hard to dispel the coast’s negative image, universally referred to for many years as the Costa del Crime.

Who qualifies for a Golden Visa?

In Spain the new Residency Law says that once the permit has been granted, investors are permitted to remain within the country for at least one year. Non-resident overseas nationals wishing to invest “significant amounts” are encouraged to either apply for an entry visa or an Investor Residency Visa.

If they wish to make a real estate investment, they must purchase Spanish property for at least EUR 500,000 or more to qualify. This rule applies to individuals as well as “legal entities”, such as limited companies domiciled in a territory not considered as a tax haven, according to Spanish legislation.

Another concern critics have voiced against the widespread issuing of Golden Visas is the fact that the permit entitles non-EU nationals to move freely within the Schengen countries. It is feared that the new residency permits will be abused by terrorists trying to establish sleeper cells across the borders until they are ready to strike.
 
Seen outside of this sinister context, however, tourism experts believe that it will be hugely beneficial to border regions such as the Algarve in Portugal and Spain’s Andalusia province as legitimate investors will be able to freely explore both regions, helping local economies to recover from the recession.

Making the Costa del Sol even more attractive to buyers

Legitimate foreign buyers from non-EU countries like the prospect of purchasing a home in Marbella because the Golden Visa entitles their children to attend European schools. Marbella boasts several well-respected international schools. US students are also able to complete the first two years of their US degree courses at the American College Marbella.

The Golden Visa is also available to non-EUR nationals who are investors in property portfolios. Marbella is a preferred location for such buyers because of the resort’s year-round appeal to holidaymakers looking for self-catering villas and apartments. Marbella‘s Golden Mile, Soto Grande and Puerto Banus are their main target areas.
 
The Costa del Sol’s warm climate practically guarantees 300+ days of sunshine and the large choice of fantastic golden beaches, local theme parks and other tourist attractions plus the fact that Marbella and its neighbouring resorts offer ca. 70 world-class golf courses between them are another factor for Marbella’s continued appeal to foreign investors.