Marbella (Málaga), August 4.- The luxury real estate market in Marbella and the Costa del Sol has been boosted, despite the Covid-19 pandemic, to “historic” sales levels, even exceeding those that were carried out during 2019.

This is clear from the report prepared by Panorama Properties, the oldest real estate agency in Marbella, where it is found that the number of purchases, formalized and in the process of formalization, carried out in the first half of 2021 has increased by 68% compared to with the same period of 2019.

According to these data, for the municipalities of Marbella, Estepona and Benahavís, a 9.2% increase in sales is observed compared to the same period in 2020, with special attention to Marbella, where the increase is 22%.

In this way, Panorama also foresees that house prices, despite having adjusted during the pandemic and remaining stable at this time, will gradually begin to increase.

The 8.56% rise in construction costs recorded from the end of the first quarter of 2020 to the end of the first quarter of 2021, according to the Appraisal Society, are also contributing to this rise.

Houses between 3 and 12 million euros, the most demanded

It should be noted that, although there are homes available on the market in all price categories, those that reach between 3 and 12 million euros, or even more, have become the usual type of sale.

A way of reacting right now in the market that draws attention because “they are properties of a level that practically did not exist before the last crisis and of which there could even be a temporary shortage”, point out the experts in the sector.

90% of buyers are foreigners

Regarding the nationality of the buyers, 90% of the luxury segment are foreigners, which “has provided great strength to the local market for so many years,” they highlight.

During the past year 2020, the three main nationalities of foreign buyers in the province of Malaga were the British (19%), the Swedes (13%) and the Belgians (9%).

Despite Brexit and against all odds, the British have been and continue to be the foreign nationality that invests the most in the purchase of real estate in Spain since the late 1970s.

a) The existence of a substantial amount of money from the country of origin in order to safeguard it from political and financial oscillations.

b) Obtain a “VISA” for the investor as well as his family which will permit him to enter and travel within the European Union (Schengen Territory) without any impediments or problems.

This form of investment is what is incorrectly denominated “GOLDEN VISA” and the correct denomination being “RESIDENCE AUTHORIZATION”

This manner of obtaining a type of residence was approved in the RD 14/2013 on the 27th of September, denominated as ENTREPRENEURS AND THEIR INTERNATIONALIZATION and as the heading of the law defines it had and has a fundamental economic objective, to boost the country’s economy, in the middle of the worst economic crises our country has suffered, amongst the small businesses and self-employed, enabling international movement as well as for these economic reasons easing the concession of visa´s and residential authorization.

Measures of an economic type which consist in easing for those people who carry out a series of economic investment in our country a privileged type of residence (residence authorization), not only for the investor but for determined family members.

Before explaining the benefits granted to these investors, let me explain the different types of investments which the above mentioned law refers to:

A) Investment in State Public Debt for an amount no less than two million euros.

B) Investment in a Spanish company for an amount no less than one million euros.

C) Investment in properties for an amount no less than five hundred thousand euros

There are another two possibilities in which one can obtain a “Residence Authorization” according to the law, they are:

Specialized skilled labour.

Implementation of an Investment Project which will improve the country´s wealth.

Although in this article we are going to make reference to the first two, leaving the third, investment in properties for a later article.

CAPITAL INVESTMENT

To be considered one of the following criteria must be fulfilled:

A) A million Euros in company shares or stock of Spanish capital companies with an actual business activity

The applicant shall provide proof of having made the investment for the minimum amount required, within a period not exceeding one year after filing the application by the copy of the investment declaration recorded in the Foreign Investments Registry of the Ministry of Economy and Competiveness must be submitted

B) Two million Euros in State Public Debt.

The applicant shall provide certificate submitted by the financial institution or the Bank of Spain, indicating that the applicant is the sole holder of the investment for a period equal to or greater than 5 years.

C) One million Euros Bank Deposited Investment.

The applicant shall provide a certificate submitted by the financial institution, stating that the applicant is the sole holder of the bank deposit.

A business project predicted to be carried out in Spain that is deemed and proved to be of general interest. It is necessary to submit a favourable report to prove that the business project submitted there are grounds of general interest. The report must come from the Economic and Commercial Office from the geographical area where the investor files the visa application.

Of all the possibilities mentioned the most attractive for the investors outside the European Union, non-EU members, is without a doubt the investment in property. The reason being the following points:

– Lowest amount, the cheapest.

– The best possibility of revaluation of your investment

– Possibility of an immediate cost effective return for the renting out of the property.

We will talk about these types of investments in later articles.

WHO: Together with the investor, his/her family can also benefit: spouse or person with a similar affective relationship and children under 18 years of age or of legal age but economically dependent.

Those of legal age who, being financially dependent on the holder, have not formed a family unit of their own. The parents in their care, who accompany or join the foreign nationals, jointly and simultaneously or successively, for an authorization and, where applicable, a visa. To do this, evidence must be provided in compliance with the requirements stipulated.

WHAT: According to the law the initial authorization of residence for investors will last two years.

Once this time period has expired, those foreign investors wishing to reside in Spain for a longer period of time may apply for the renewal of the residence permit for successive five-years periods, providing the conditions generated the right are maintained.The granting of a “Authorization of Residence” (Golden Visa) for investors constitutes title enough to live and work in Spain during its term.

WHY: Uncertainly, instability and risk in many parts of the world make wealthy people ahead and secure the best future for them and their family, investing in real states business and obtaining a residence authorization for the investor and his/her family.

WHERE: In Spain, a member of the European Union and Schengen Members unlimited travel across all 26 Schengen countries without borders control.

ABOUT HOW, YOU CAN DO INVESTMENTS IN PROPERTIES IN SPAIN: The minimum investment of €500,000.00 need not only refer to one property but may relate to several properties where the total investment amounts to €500,000.00 or more. The applicant must accredit having made a property investment of 500,000 Euros free of all liens or encumbrances. The portion of the investment exceeding the required amount may be subject to liens or encumbrances.

OR CAPITAL INVESTMENT: To be considered one of the following criteria must be fulfilled: One million Euros in company shares or stock of Spanish capital companies with an actual business activity. Two million Euros in Spanish Public Debt. The applicant shall provide certificate submitted by the financial institution, stating that the applicant is the sole holder of the bank deposit.

And other option, one million Euros bank Deposited Investment.The applicant shall provide a certificate submitted by the financial institution, stating that the applicant is the sole holder of the bank deposit.

A business project predicted to be carried out in Spain that is deemed and proved to be of general interest. It is necessary to submit a favourable report to prove that the business project submitted there are grounds of general interest. The report must come from the Economic and Commercial Office from the geographical area where the investor files the visa application.

FOR MORE INFORMATION CONTACT US: info@goldenvisainspain.es

An example of some of these countries is: Turkey, Russia, Egypt, Venezuela, Iran, China and Arab Countries, between others.

The citizens of these countries have a necessity to find a way out and make sure that part of their patrimony is safe, and at the same time be able to send their family to live and children to study abroad, the best country is Spain, it is a country which fortunately at this moment has a strong economy, the country which within the European zone has the greatest growth rate in the last few years, equipped with the latest technological advances, with a first rate public and universal health care, with international schooling, with first rating communication network by land, sea and air, etc….

But of utmost importance is to receive correct advice, seen it´s not just any investment. In other words, we have to be very careful with the structure of the investment for get a Golden Visa, because as it always happens in our country, the fine print of the law, and on the other side its interpretation, can lead us to give our clients incorrect advice.

Serving as an example, we inform our clients of Golden Visa that the investment can be carried out together with other members, as long as each one invests more than five hundred thousand euros. This option was valid up till the summer of 2015 when it was modified, but because of different motives (fraud and abuse of some investments) the administration since the spring of 2016 is carrying out a restrictive interpretation of the law.

As I normally tell the agents with which I work, a real estate agent has to have a general idea of this selling tool, but then to pull it off must get in touch with a lawyer who specialises in this field. We, in this type of consultancy, as in the sale of property, carry out an analysis (Due Diligence) of what the client really needs and what the best solution to their pretences is.