GOOD-BYE VISA

Expat property investors could lose right to visa for property investment

SPAIN’S ‘Golden Visa’ scheme is in danger of being abolished under a new bill submitted to Congress.

The Residence by Investment scheme, introduced in 2013, allows foreigners to obtain a Spanish residence permit by buying real estate worth at least €500,000 in the country. Left-wing political party Mas País said this type of investment drives up housing prices, making it difficult for locals to purchase their own homes.

At the same time, it claims, the government does not

By Walter Finch

carry out checks on the provenance of the funds, opening the door for crooks and fraudsters.

The bill submitted to Congress would limit the Golden Visa to foreigners who launch a business project with job creation or innovation that contribute to the growth of Spain’s economy. Simply purchasing property would not be enough, with Mas Pais arguing that this does not create jobs or bring any other economic

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Legal Eagle

With Victoria Wright

Correcting boundaries

The Catastro is a regional government department responsible for mapping property boundaries which you pay for your property.

DID you know that it is the property owner’s responsibility to inform the Catastro department of its errors?

Also, it is the Catastro office which informs town halls and land registries of their calculations, not the other way around.

Where do they get their calculations?

For urban properties where roadways, walls and fences exist, these are used as a ‘most likely boundary guide’.

In more rural areas it is harder for them to distinguish the boundaries so natural land breaks such as ravines and dry riverbeds are used.

Some people though may wall in their cultivated garden and pool area but leave an expanse of their land without fencing in to keep the aesthetics open and natural.

This can often lead to mistakes and boundary disputes when the visual map varies from the written description on the title deeds and in turn the physical reality.

How does their mistake directly affect you as a homeowner?

This calculation directly affects the amount of annual council tax (SUMA) benefits and drives up inflation.

This map is also used to calculate the transmission tax due on the sale and purchase of a property, so if you’re being charged for your neighbour’s land as well as your own this can be a large overpayment.

What can be done?

To rectify the mistakes in their plan, the property owner must collate a series of documents and evidence to present: usually the title deeds ( escritura ) and often reports from the town planning department are required.

On many occasions an architect or topographer may be necessary and sometimes affidavits from surrounding neighbours. Most of this documentation can be presented remotely. For many homeowners, this can seem a little daunting. Given that there are various documents to collate and official departments to deal with, we suggest that people seek the assistance of a professional company, such as ourselves.

We can collate your documents and present them for you or, alternatively, guide you through the process if you wish to carry out this procedure yourself.

Leader of Mas País, Iñigo Errejon said: “The Spanish government does not check where this money comes from, nor how it was earned or what the rest of the relatives who come get up to. It is basically a class shortcut.”

“There are parts of Spain that are being colonised by people who do not want anything to be regulated.”

Portugal

Last week Portuguese Prime Minister Antonio Costa announced the ending of his country’s Golden Visa scheme in order to ‘fight real estate speculation.’

The European Commission has also expressed its opposition to Golden Visa and Golden Passport schemes in the EU.

HOME property sales in Spain reached 650,000 in 2022 - the biggest total since 2007 when nearly 780,000 residences were sold.

The National Institute of Statistics (INE) figures showed a 14.7% rise in sales on the previous year despite a 10.2% annual fall in December caused by rising interest rates and increasing financing costs.

With the exception of 2020, which was an untypical year due to the pandemic, house sales have exceeded 500,000 annually in Spain since 2018. Used homes accounted for 532,459 sales in the 2022 total.