Russians' desire for Spanish Real Estate was Stronger Than the Pandemic

Everything passes, even pandemics. Only the love of Russians and residents of other CIS countries for real estate in Spain does not pass. This is evidenced by the latest reports of realtor publications in this country. About this and our next material.

Statistics emigration center GARANT.in shows: Russians again vividly, as it was before lockdowns, buy real estate in Spain. The number of applications for a Spanish Golden Visa is increasing, but the market is revitalized not only in the framework of registration of residence permits. Buy and other real estate, not related to the investment program.

What do the figures say

College of Notaries of Spain in its report says that over the past year, Russians have made about 2 thousand sales transactions in the Spanish market. It is worth emphasizing that this figure reflects only transactions of individuals. But in previous years, every fourth transaction involving buyers from Russia was made on the companies created specifically for the purchase. This allowed to "kill two birds with one stone": to get tax benefits (fiscal charges for legal entities are less) and hide the true owner of the property.

And although the number of transactions involving Russians decreased by 37% compared to 2019, it is still about a quarter more than in the same period last year.

The Russians' desire for Spanish real estate proved stronger than the pandemic
But the fall of 37% - this is not so much in comparison with the indicators of investors from other countries. So, according to the same data, the Chinese during the pandemic began to buy in Spain three times less! The main reason - difficulties with flights, and the general "fading" of business activity.

For reference. The Chinese buy a lot of office real estate, buildings for warehouses, etc., and in industrial cities. In other words, the structure of their purchases is aimed at business development in Spain. Russians prefer to buy housing: apartments, villas, hotel rooms. The geography of such purchases is mainly resort regions.

Russians know how to circumvent obstacles

Spaniards who have information about their real estate market, express surprise at this activity of Russians. In particular, they emphasize that in connection with numerous scandals and cases of fraud, the Russian money here has established an image of "potentially unreliable". Investors from Russia are subjected to particularly close scrutiny. It is not uncommon for them to be asked for additional documents confirming the purity of the origin of their financial assets. And all certificates and papers must be certified by representatives of the Spanish dipuchrezhdenie in Russia.

"Antidote" found by Russians - working through Spanish intermediaries using specially developed technologies for legalization of financial flows from abroad.

There is also another way - to use accounts from third country banks for the purchase. But it is less reliable, as it has already attracted the attention of the Spanish intelligence services.

Another question that surprises local realtors is how Russians get to Spain, given the constant bans on visiting the country and the minimization of direct flights. These obstacles, as we pointed out earlier, have stopped the flow of Chinese investors.

Turns out the Russians

 get to the Kingdom through third countries whose contacts with Spain are not so limited;
by right and wrong get permission to enter as an exception, or on the previously obtained residence permit in the European Union.

What real estate buy Russians?

A certain part of the transactions are made within the framework of participation in the Golden Visa program. Here, recall, the minimum investment threshold is 500 thousand euros. For the investor, by the way, this is the least troublesome option - all the worries, from the search for housing to its registration, usually take on certified companies, one of which is GARANT.in.

In addition, the Russian buyer is most interested in real estate within 180 - 220 thousand euros. In the south and south-east, in the tourist regions, many of the objects of their interest are luxury houses and villas, often costing from several million to ten million and more. A good example of such places - Sotogrande or La Zagaleta in the Costa del Sol.
A lot of transactions are apartments from 70 to 120 thousand euros. For example, in the town of Torrevieja (Alicante province), natives of Russia and the former Soviet Union own almost a quarter of the entire housing stock.

Who buys?

Surveys say that among the buyers prevail businessmen, former officials, as well as representatives of the creative intelligentsia. As a rule, the main reason for the purchase called the desire to come on vacation in their homes, taking advantage of the beautiful climate, nature and quality products. But many do not hide the fact that the real reason is the opportunity to have a quiet and calm "reserve airfield" in case of various force majeure circumstances at home.