Foreign investors that purchase property in austerity struck Greece and Spain are to be offered residency permits in plans to attract investment. Greek property prices continue to plummet while Spain is stuck with a glut of unsold properties.
Both the Spanish and Greek government are mulling plans to attract foreign investors. Emirates 247 reported there are over a million unsold properties in Spain where prices have fallen more than 30 percent. According to the Global Property Guide residential property sales in Greece fell by over 54 percent in the first quarter of 2012, in spite of rapidly decreasing prices.
Spain is considering a more enticing offer than Greece, offering residency to those purchasing property above the value of €160,000. In Greece the value of the property is set much higher, at a minimum of €300,000, Ekathimerini reported. Another plan is to offer Greek residency to foreigners who invest €1 million in a business.
The plans emulate agreements already established in Portugal and Ireland which offer residency permits in return for foreign investment in properties valued at €400,000 and €500,000 respectively, the Telegraph reported. The move could boost property prices and is likely to appeal to Russian investors in both Spain and Greece. It may also attract investors from the Middle East. Currently only members of other European Union nations have an automatic right to residency in Spain and Greece.