Let’s now look at some of the advantages and also some of the challenges involved in this route.
On the plus side, after a period of price declines and low real estate prices from around 2014, the Spanish property market has considerable potential for gains over the coming years.
This recovery is still underway but prices are still well below the equivalent of many other popular European locations, even in Spanish city centres.
So this means property prices are fairly affordable in comparison so other EU countries.
However, some would say that this is a riskier investment compared to buying property in some other EU countries, perhaps Germany for example. Unemployment among young people is also quite high in Spain.
Bear in mind that in order to become a Spanish citizen, you have to spend at least 183 days, or half of the year, in Spain, for 10 years. This means that if you are going for citizenship, rather than just residency, you’ll likely become a tax resident and therefore tax planning should be part of your consideration. If you need advice on this front, get in touch with me and I have tax lawyers who can assist with the tax-planning aspect.
Just to get down to illustrate these points, let’s look at a hypothetical example of Edward.
So first, Edward, having taken advice from me and my Spanish lawyer, decides that the 500,000 euro real estate route is the best option for him to secure EU residency and citizenship.
Once Spanish citizenship is granted, Edward and his family are naturalised as Spanish citizens – and therefore become EU citizens. So they are then able to live and work, for example, in any of the European Union member states, such as Germany or Italy.