Due to the political situation in Catalonia, there has been some hesitancy with buyers in the Real Estate market. Golden Visa intact after Catalonian Referendum , Here are a few reasons to take advantage of the current state:
- The general commotion can help buyers to negotiate a better price, as the price expectations of the sellers skyrocketed earlier in 2017
- Regardless of the political situation, the attractions of Barcelona remain – the sea, climate, culture and architecture
- The margin of growth for the real estate market in Barcelona and its surrounding areas is still high
The Golden Visa is a great benefit to those from other countries looking to invest in Spain, but will it continue if Catalonia declares independence? The legal consequences according to Raisa Venermo , partner at AvaLaw, Barcelona are the following :
Golden Visa system – Legal security
Independent or not, the Golden Visa will continue to exist with the same guarantees for those who are applicable. Catalonia has the most to gain from keeping the Golden Visa system as half of all Golden Visas in Spain have been granted for investments in Catalonia. If there is still doubt, one must not forget that when it comes to the renewal of the Golden Visa, owners will have the opportunity to sell their properties in Catalonia and invest in another area of Spain.
From the legal understanding, investment is completely secured. In the case that independence is declared, and the Spanish state does not accept this, then Spanish law will continue to be applied to Catalonia. If the Spanish state recognizes independence, the law of transition applies, which means Spanish law remains until negotiations are complete and all problems concerning hypothetical legal insecurity are resolved.
Free circulation of goods and people
We have no doubt that Catalonia will continue to form part the Schengen Area as it is an important area of passage between the Iberian Peninsula and the South of Europe.
The protest of companies is only for show
The change of social and fiscal headquarters hardly affects the Catalan economy due to the production activity and supply of services that remains in Catalonia. In addition, Catalonia will still receive a part of the following taxes: IRPF (Personal Income Tax); Corporation Tax; IVA (VAT); and IBI (Property Tax). Further positive news is that the majority of foreign companies, whose headquarters are based in Catalonia, have not announced any change.
Buyers’ rights will not be lost- If there is Catalan independence, all residents will continue to have their buyers’ rights protected, as specified by the law of transience approved by the Catalan parliament. So we at Casamona believe that Golden Visa will continue to exist Independent or not!
For more information about current real estate news in Barcelona, please take a look at our latest blog post , www.casamona.com.