Can someone confirm Automatic Residency with a 160k euros purchase?

If you have loads of money you can live in Spain and then have to declare  your worldwide wealth (over 50,000€) and pay tax on worldwide income. 

Why would any seriously wealthy person want to do that ?

Under the new visa law, you would only pay tax in Spain if you spend more than 183 days in any calendar year. Once having purchased a property or properties to the minimum value of 500.000 Euros, you can then apply and obtain residency for the first year. There is no obligation to spend a minimum amount of time in Spain in this period. Once an investment has been made, and after the first year, investors can apply for authorisation to live in Spain for two years, renewable for another two years after that (and on), so long as the investment threshold of €500,000 is maintained. Properties can be bought and sold during this period, so long as the investment threshold is maintained. There is no obligation to spend a minimum amount of time in Spain, so investors can remain tax resident outside of Spain, whilst benefiting from Spanish residency and the freedom of unlimited travel and stays in the EU. After five years of continuous residence, investors can apply for permanent residence in Spain.
 

http://issuu.com/mariadecastro/docs/new_residency_permits_in_spain?e=3739526/5032513