Spain residence is now possible for almost every nation.
So far, every European of the EU economic union who works or has economic dealings in Spain or any of its provinces, such as Tenerife is entitled to European or even a Spanish residence. The same applies if a spouse is a Spain national, although the marriage partner may spend less than 183 days in Spain. Also expat pensioners and retires to Spain with enough income will get the residence permit. Residency must be asked for in Spain when living on land and within 12 nautical miles from it and when staying longer than the minimum which is valid for vacations up about 6 month or 182 days. Mind some finer points with your British tax consultant, as far as double taxation UK Spain may be concerned.
The Spanish President Mariano Rajoy has proposed a change in Spain property law in July 2012. It is already in the process of becoming legitimate, right now.
What does the new property law entail?
Now for example, investors from anywhere from outside Europe can buy Spain property and will automatically become residents in Spain. In July 2012, the media published that they qualify when they purchase apartments for at least €250000.
Now it's said that the amount spent to get permanent residence papers should be above €160000.
No final decisions have been taken yet by the Spanish government.
No doubt about it, such investments will pay off in the long run.
Some of such apartments will be suitable to be let out for vacations. The holiday home in Tenerife is one such option.
Of course, this also opens doors to Chinese, Russian, African, South American, American, Canadian, Arabian and more international investors.
Certainly, there are other means of receiving residence which follow political or humanitarian rules.
Owning property and paying taxes for it in Spain while you live there makes more sense. Wouldn't you agree? Otherwise, contact your consulate in case of any doubt.