Cyprus | Posted:

The government in Spain, whose housing market is suffering having 700,000 unsold properties, plans to offer a permanent residency visa to foreign buyers that purchase properties worth more than 160,000 Euros. The move is aimed at Chinese and Russian property investors, an example that Portugal and Ireland are likely to follow in view of their economies being affected as well by the economic crisis.Spain intends to give the possibility to non EU investors that will acquire property as well as a residency visa, to be able to work eventually in the country. A large debate is opening up on this matter and is under serious consideration by the state. No final decision has yet been reached but the government is targeting to reduce the number of unsold properties that are the result of a huge property ‘bubble’ from 2008 onwards that left the country’s banks exposed to ‘bad debts’.Cyprus will find a serious competitor in its plan to attract non EU investors to the island as the investment limit Cyprus has set is 300,000 euro, double to what Spain is proposing. Both countries seem to have an identical progress in their economic crisis as Spain’s banks collapsed due to overexposure in the Property market.