Permanent residence in Spain: national visa D through the purchase of real estate
Purchasing real estate abroad has become commonplace for Russian citizens. A particularly popular destination is Spain, where you can find real estate in famous European resorts. This country, along with Bulgaria, Germany and Montenegro, attracts the greatest interest from Russian investors.
According to information provided by the Spanish Consulate, in 2011, citizens of the Russian Federation purchased approximately 5 thousand real estate properties in Spain with an average cost of 240 thousand euros, which is 20% more than in 2010. Currently, every fourth transaction with foreign investors in Spain is made by Russians.
Owning your own home on the sea coast provides its owner with many advantages. Firstly, the issue of accommodation during vacations is resolved. Secondly, such housing can become a source of additional income if it is rented out during the owner’s absence. Thirdly, it is a reliable investment of capital, which, if approached correctly, ensures its significant growth.
In case there is no need to work in Spain as an employee (for wealthy people), the purchase of real estate guarantees almost automatic receipt of a national visa D (without the right to work). This visa allows you to live in Spain an unlimited number of days per year (from 183 and more).
The financial crisis in Spain and its impact on the real estate market
Spain is in the midst of a financial crisis, which is directly related to the gradual decline in real estate prices. Compared to the pre-crisis 2007, real estate prices have fallen by almost 30%. However, it should be noted that the economy is subject to cyclicality, and crises are always followed by upturns. That is why now is the most favorable time to purchase real estate. Many people have already realized this, and demand in the real estate market continues to grow.
At the same time, the Spanish government is taking additional measures to stimulate purchasing activity. It provides tax breaks for real estate buyers, in particular, it reduces the tax on property appreciation by half. Commercial banks that find themselves in a difficult financial situation are forced to sell mortgaged real estate at prices that seem implausibly low. On average, apartments in good condition and with an attractive location cost from 100,000 euros. Of course, there are cheaper options, but they have their drawbacks.
The Spanish national visa is issued by the Consulate less frequently than the Schengen visa. It allows you to stay in the country throughout the year: to work, study or simply live without the possibility of earning an income.
A D visa to Spain without the right to work is issued on condition that you have a stable income outside of Spain: 40 thousand euros per year per person (and an additional 10 thousand for each family member). This guarantees that you will not apply for scarce jobs during periods of unemployment, taking them away from the local population.
Considering that you will be spending quite a lot of time in Spain, the income does not require your constant presence: it can be interest, dividends, rental income, etc.
At the same time, a D visa does not prevent you from opening your own business in Spain and receiving income on its territory, but as an employer, not an employee.
The National D visa is issued by the Spanish Consulate after reviewing the package of documents submitted by the applicant. This package includes, in particular, a letter explaining the reasons for applying for a type D visa, as well as documents confirming a stable income and the availability of decent housing in Spain for the applicant and his family members.