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RESIDENCY PERMITS

Residency for non-EU buyers of €500K homes

After much debate, Spain is set to introduce a new law which will grant permanent residency permits to non-EU nationals who buy a property in Spain worth €500,000, experts say.

Residency for non-EU buyers of €500K homes
The Spanish government set the initial property investment hurdle at €160,000, a figure many believed made Spain look cheap. Photo:Frank Kovalchek

The news is likely to go down well with affluent Russian and Chinese property buyers, who are already the third and eighth biggest foreign homeowners in Spain.

“Obtaining the right visa permits and documents for Spanish residency in China and Russia is known to give anyone a bureaucratic headache,” Alex Vaughan, partner at luxury Barcelona-based estate agency Lucas Fox, told The Local.

“Although the new law hasn't been passed yet, it’s likely to make it a lot more straightforward to obtain a permanent residency permit, rather than the temporary one that non-EU nationals have found so difficult to get up to now.”

Back in November, the Spanish government set the property investment hurdle at €160,000, a figure many believed made Spain look cheap when compared to the €400,000 sum demanded by Portugal and Ireland for non-EU residency permits.

They have since been drafting new legislation which, according to inside sources, will set the bar at half a million euros for prospective buyers looking to gain official Spanish residency.

“The only strings attached are, to our knowledge, no criminal record, proof of your ability to support yourself financially and private health insurance,” says Vaughan.

Under the draft new law, foreigners who obtain residency in this way won't be able to work in Spain, or access the country's health and social security systems, sources from Spain's Ministry of Economy and Competitiveness told El País newspaper on June 3rd.

Approximately 90 percent of Lucas Fox sales come from foreign buyers, 40 percent of whom are either Russian or Chinese.

“We've had increasing interest from prospective homeowners from South East Asia, but also from Australia, the US, South Africa.

“People from overseas are attracted by the quality of life over here, and Spain has far better infrastructure, health care and transport than countries like Cyprus and Portugal that have introduced similar legislation.”

Vaughan told The Local that once the new law is put in place in June, it could only be beneficial for Spain’s ailing property market, despite the fact that demand for luxury homes like the ones Lucas Fox sells has continued growing throughout the crisis.

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WORK PERMITS

Denmark’s minimum work permit salary still among highest in Europe

The minimum salary you need to be eligible for a work permit in Denmark remains among the highest in Europe, even after it was reduced with a new scheme this April, a comparison by The Local has found.

Denmark's minimum work permit salary still among highest in Europe

On April 1st, the new Supplementary Pay Limit Scheme came into force, reducing the minimum salary eligible for a work visa from 448,000 to 375,000 kroner, or €50,291 per year with the aim of making it easier for businesses to hire internationally. 

But the strength of the krone, together with the high level of the original Pay Limit Scheme, means that even at this year’s reduced level, Denmark’s threshold remains higher than all other EU countries, with only The Netherlands’ scheme for highly qualitified professionals over the age of 30 requiring a higher salary of just over €60,000. 

Germany’s work permit for qualified professionals has a salary threshold of €48,180, France’s qualified workers visa has a salary threshold of €41,993, and the highest salary threshold in Norway, for roles requiring a Master’s degree or higher, is €41,685. 

READ ALSO: What salary do you need to get a work permit in Europe?

Even after Sweden doubles its minimum salary threshold in November, at €28,500 it will still be only slightly over half of the minimum salary level required in Denmark. 

Emil Fannikke Kiær, political director at the Confederation of Danish Industry, told The Local that his organisation believed even the threshold in the new Supplementary Pay Limit Scheme was too high for Danish businesses to be able to compete for international labour. 

“We’ve been arguing for this amount to be lowered for many years and we were quite satisfied that we succeeded last year to get it down to this 375,000 kroner, but we would prefer it to be lower, absolutely,” he said.

“Danish businesses have a lack of employees. It’s difficult to hire people, not only for high income roles but for middle and low income roles too. So even businesses looking for lower income groups are looking beyond state borders to find employees, and this is an obstacle.” 

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