The Spanish Cabinet has today approved an aid plan for tenants having trouble paying the rental fee. The following points stand out:

  • Suspension of evictions for 6 months from the end of the alarm state
  • The automatic 6-month extension of rental contracts to prevent abusive increases
  • Direct aid of up to € 900 after the crisis

This plan includes microcredits guaranteed by the State at zero cost.

The objective is that all unemployed people, those affected by a temporary employment record and the self-employed who have seen their income significantly reduced due to COVID-19, can benefit.

These measures have been announced, after the Council of Ministers, the spokesperson and Minister of Finance, María Jesús Montero, the second vice president of Social Rights, Pablo Iglesias, and the third vice president, Nadia Calviño.

A distinction has been made between small and large owners. The small owners will be guaranteed the full collection of the rents, and the investment and home funds, which will assume part of the impact of these measures and you will have to carry out restructuring of the debts of the tenants. The idea is for the State to take over with public funds the debts of all those tenants in situations of vulnerability due to the Covid-19 crisis, a situation that can lead to exemption from payment to thousands of households.

An automatic 6-month extension of all rental contracts has also been approved, which means that no tenant with a current contract can raise their rent for the next 6 months.

Regarding microcredits (without interest costs or commissions) they can be repaid in up to 6 years. If after these 6 years they have not been returned, an additional term of 4 more years will be enabled.

The conditions for tenants’ access to microcredit programs are also expanded, which will be less restrictive than in other cases in which the concept of “vulnerable housing” is applied. In this case, all unemployed people, from ERTO or with reduced working hours, and the self-employed who do not reach the limit of three times the IPREM (increase for children and dependent dependents) are allowed to participate.

In any case, these tenants will always be able to take advantage of the ICO credit lines, and families who cannot afford to pay the microcredits will have direct state aid to pay off the debt with the ICO.

It is anticipated that the amount of the aid could reach a maximum amount of € 900 per month and up to 100% of the principal and interest of the subscribed loan. In addition, a grant of € 200 per month could also be approved to cover the costs of maintenance, community and basic supplies with the limit of 100% of these.

If you want to know the measures that the Spanish government has aproved due to the Covid-19, real the next article.

If you have any doubt, our team will be very pleased to answer any questions you could have. Contact us!

According to numerous reports, sources close to the coalition government confirm that the possibility of suspension of rent is being studied for those people who have become vulnerable due to this economic crisis caused by the coronavirus pandemic, regardless of who their landlord is.  This means that all those who cannot afford to pay the rent for their houses due to the loss of their job, an ERTE or a reduction in working hours will be able to be accommodated. This measure will also include the self-employed and SMEs that are suffering a substantial drop in their income.

It is proposed to establish an extendable moratorium period of two months and compensation to owners. The suspension of the payment of home rentals will be extended to the payment of premises and offices in the case of self-employed persons and SMEs, who, as mentioned before, have a significant loss of income.

For lessors, gradual financial compensation would be offered, which could range from 100% of the amount in the case of a two-property owner, to just 5% for large holders or those with more than eight rented properties.

The initiative includes the duration of said suspension of the payment of the rent: during the next two months, extendable to the following month once the state of alarm ends. In addition, all those contracts that end during the validity of the alarm status may be automatically extended for three months.

It remains to be specified how the vulnerability situation can be proven, although it is intended to facilitate access through the presentation of documents or with a responsible statement. Another point from which the initiative starts is that abusive rent increases will be prevented in the six months following the implementation of this measure

Within the package of economic measures approved by the Government is included the moratorium on the payment of mortgages, but not that of rents, something criticized by unions and different associations. However, Nadia Calviño asks for one more week to study the measures on minimum income and rents. The economic vice presidency and the Ministry of Finance requested more time to study the proposals that were discussed at a meeting on Monday and design them avoiding “side effects.” Its objective, as these last departments transferred, is that the measures put in place are well designed to respond effectively to social needs and without generating other possible side effects.Aid for rent can also be used for housing, beyond the premises and offices of SMEs and the self-employed, but it will be necessary to distinguish between small owners and large holders of housing who, at a time like this, have to settle the shoulder so no one is left behind.

As reported on March 24 in the newspaper El Confidencial and regarding the creation of a minimum vital income, the Government intends to allocate it to those people who have not been able to avail themselves of the first package of social measures approved last Tuesday.  Therefore, it would not have a universal character and, moreover, its duration would be temporary, depending on the duration of the effects of the economic crisis as a consequence of the coronavirus pandemic. It would be, according to Executive sources, a form of minimum income “to protect those who have no income or have seen their incomes reduced.” This proposal is counting on allies of a transversal spectrum, which ranges from the third sector and social groups to the vice president of the ECB Luis de Guindos, who has defended a “minimum emergency income”.

Due to this situation, from Orience International, as advisers in legal, financial and strategic matters for international investors, we are available to all our clients and to all involved people who want to get advice, whether they are residents of Spain or have any investment in the country and consider it important and useful to have the help of a team of professionals in the Real Estate sector.

To do this, you can contact us via email sr@orienceinternational.com sending your questions or requesting more information about our professional advisory services.

Discover all the services of Orience Premium Club.

 

As part of the measures to contain the transmission of COVID-19, the recommendation for citizens is to continue to follow the usual rules of food safety and prevention facilitating the appropriate authorities to contain the spread of the virus.

We also provide the following recommendations for shopping food:

  • Avoid going to the supermarket if you have fever or respiratory symptoms. In these cases, ask someone for help.
  • Only one person has to leave. As far as possible the most vulnerable people should stay at home.
  • Go out and buy only when needed and plan to minimize the number of visits grocery.
  • Take an alcoholic hand sanitizer with your hands and use it often.
  • Preferably carry your own shopping bag or cart and frequently disinfect them with the same alcoholic hand sanitizer solution.
  • If you pick up carts or baskets from the supermarket, disinfect the contact area with your hands alcohol solution.
  • Wear disposable gloves to grab food.
  • Touch as little of the food as possible, even when it is packaged. Try to make sure you want to take the product before you take it. Do not leave it again after touching it.
  • Be careful of everything you touch, such as door handles and displays, screens, keyboards for payment, elevator buttons, money, etc. Disinfect your hands with alcohol solution whenever needed.
  • Always keep the minimum safety distance of two meters with others and avoid agglomerations.
  • When returning home, wash your hands with soap and water. If you see it necessary you can take additional measures such as cleaning the packaging with a disinfectant solution and removing the outer packaging.
  • Clean fruits and vegetables by adding a few drops of bleach to the water.

 

The capital of Catalonia is a major economic center in Spain, with a range of business opportunities, entrepreneurial culture and desire to thrive.  That’s why now it’s the best time for internationals investors to buy luxury real estate in Barcelona, one of the most beautiful cities of Europe.

During the past years, the real estate sector in Spain has recovered, reaching sales figures significantly higher than in 2017. This boom has happened because of the strong international investment in the Spanish real estate market caused due the advantages of the Golden Visa program. In fact, the real estate sector has reaffirmed its recovery in Spain with the luxury homes sales, that have risen by 27% last year.

With all of this, what was believed to fall quickly just four years ago, has now become a stabilization of prices that are gradually increasing. While the rise of shopping flats it’s not exaggerated, the revitalization of the sector and the bubble of rental prices, especially in Barcelona, make it more interesting to buy real estate as an investment.

Protagonism of Barcelona

Nowadays, there is a huge number of international investors that want to buy luxury real estate in Barcelona which means a sharp increase in the average selling price, that soared by 19% in the first half of 2018.

According to the data of the Ministry of Development, luxury real estate transactions (carried out for an amount of more than 900.000 euros) increased by 34% during 2017.

Favourable scenario 

The expansive situation in which the Spanish economy is right now comes with a lower unemployment and access to credit, which is starting to be provided a little more. Indeed, the number of unemployed decreased by 458,900 people in 2018, a decrease of unemployment by 10,79%. In fact, the unemployment rate was 16,4% in 2018 and 14,2% in 2019.

The areas where luxury home sales rose the most were the main Spanish cities, such as Barcelona and Madrid, and holiday destinations, which recorded an all-time record in the number of prime residential property transactions.

About the future

As for the evolution prospects for the luxury real estate market it is believed that will increase steadily in Spain, since it’s been going that way for the past six years. In this way, the expansion phase of the real estate sector, leaded until last year by large cities, is gradually giving way to medium-sized capitals on the premium market of coastal areas.

These are more focused on the second residence in which there is a growing interest in high-end housing so right now it’s definitely the best time to buy luxury real estate in the most touristic cities in Spain like Madrid, Barcelona or Valencia.

For Spain, Portugal and Andorra, the most sought-after areas for residential investors are currently the Costa del Sol, with the rebound of new construction in cities as Marbella, after several years of paralysis, the Costa Blanca, the Balearic Islands and the great capitals that we have been mentioning.  Precisely in Marbella, the number of luxury transactions has rebounded no less than 50% year-on-year.

¿Do you want to buy luxury real estate in Barcelona?

¡GET IN TOUCH!

Last year’s data in terms of Golden Visa authorizations in Spain have reflected the effectiveness of this country’s programme, becoming one of the most requested European Golden Visa along with the programmes from Greece and Portugal.

Given these positive circumstances, we have consider the importance of reminding you the needed requirements in order to achieve the Golden Visa Spain and to enjoy the benefits provided by it.

Main points to keep in mind

Since in Spain the age of majority is 18, being an over 18 year old international investor would be the first requirements.

Of course, there are other compulsory requirements to get the Golden Visa Spain such as:

  • Making, at least, one investment in Spain of 000 euros
  • Having your permanent home in another non-European country
  • Proving not to have any criminal record for the last 5 years
  • Obtaining a NIE number (in Spanish, Número de Identificación de Extranjeros)
  • Proving to have the necessary resources to face the expenses during the residency in Spain
  • Getting an authorized public or private insurance
  • Paying the visa fee

By meeting these requirements, you will be closer in order to achieve the Golden Visa Spain.

Choosing your investment

To be considered an investor, the candidate will have to make at least one of the multiple ways of investment determined by the Golden Visa programme, which imply a significant amount of capital.

The first option in order to get the Golden Visa Spain is investing the minimum expenditure of 500.000 euros in real state.

Secondly, it is possible to opt for the Residence visa for capital investors (in Spanish, Visado de Residencia para Inversores de Capital or RIC) by investing 2 million euros in Spanish government bond.

In the third place, if the investment is at least 1 million euros in shares of Spanish companies or in Spanish bank deposits, the investor could get the Residence visa for the acquisition of real state (in Spanish, Visado de Residencia por Adquisición de Bienes Inmuebles or RIV):

Lastly, applicants can carry out at least one business project in Spain considered in the general interest because of its technological/scientific and economical value. This way, investors will achieve the Residence visa for entrepeneurs and business activity (in Spanish, Visado de Residencia para Emprendedores y Actividad Empresarial or REM)

It is very important to remark that the investor must prove that the minimum amount required to get the Golden Visa has been made within 60 days of applying for it.

An opportunity filled with potential

Thanks to the 2013 Entrepreneurs Law, the beneficiaries of the Golden Visa Spain can make use of different assets. The main one is being allowed with a one year residence permit without the necessity of a TIE (in Spanish, Tarjeta de Identificación de Extranjeros).

During this period, the international investor doesn’t need to stay in the country (more than 183 days) but can visit it from time to time. It can be remarked that the Golden Visa can be renewed for two years if the beneficiary wants to keep investing in Spain.

Among other benefits we find the freedom to move through the Schengen area. The freedom of movement through the Schengen territory is allowed for up to three months within one semester with the obtention of the Golden Visa.

Furthermore, we find the co-ownership of the previous rights to the couples and children of investors benefitted from the Golden Visa.

So, since the investment to complete the request for the Golden Visa in Spain is very significant and the benefits in stake are so important, it’s necessary to count on a group of experts who guide you as an investor in order to prevent administrative and legal risks. Please, don’t hesitate to contact us!

When it comes to visiting, Spain is always getting the best places on amount of international visits, as well as on amount of money spent in the country by tourists, which leave it out of the question to consider if it’s worth it visiting Spain. For investors however, the attractive a country or city is for tourists, while important, especially for investors whose income depends on visits; many other aspects come into place. And one of this variables is what city of Spain is the best to invest in. In this article we tell you why invest in Barcelona.

Even with struggles, Spain has a very diversified territory, with each autonomous community representing a unique opportunity for investors. But, if one city must be chosen right now to invest in Spain, Barcelona, one of the most visited cities in the world, is also an exciting place to invest in right now.

Opportunities to invest in Barcelona

Barcelona is a vibrant city, that breathes life, culture and art in every corner of its fascinating streets. But what does this bohemian, cosmopolitan major city of Spain, Europe, and the world has to offer to investors?

For international investors considering Spain, one of the greatest markets in the Mediterranean country has been real estate, and now the Spain is largely out of the crisis, and real estate prices have recovered from the bubble burst; prices of real estate have becoming attractive once again.

Most people would definitely want their own secondary house in Barcelona, or to just retire in this ever living city. But what about being the one providing rental houses in Barcelona? As so many tourists want to visit the city every year, and being it an urban place, where people would want to live the actual Barcelona scene; renting a vacation house would be a very good opportunity.

Why investing in Barcelona?

The capital of Catalonia is a major economic center in Spain, and it’s a very diverse one, with a wide range of business opportunities, favored by a diverse population, with an entrepreneurial culture and desire to thrive; which makes Barcelona a main target for international investment in Spain.

As Spain has been able to get out of the tough crisis that attacked the country in 2008, many Spanish people have been to get an employ, and real estate prices have increased and are projected to continue this way. And Barcelona is one of the cities in Spain to buy real estate.

One thing is true, it’s a good time to invest in Barcelona, thanks to the mix of a beautiful city that has been attracting visitors for years, with the fact that it is a city of huge important in Spain, both, economically, and historically; as well as the prices of real estate in the Catalan capital.

Especially for investor interested in purchasing real estate in Barcelona, the business of real state in the city of Gaudí is thriving right now, making it a good time to invest in Barcelona, as the outlook is positive now, and properties can be still found at very good deals, always being aware of factors such as the location of the property.