Nope. As the others mentioned, this isn't true at all. I assume when you say "auto residency" you mean permanent residency or citizenship? But no it's not as easy as just over staying 2 years and it being automatic. I heard that some people in this situation hire an attorney but even for these people it sounds like some people have been waiting for a decade or more and still don't have things resolved. And I believe that it will only get more and more difficult on getting residency here in the future and income requirements for both rentista and pensionista will most likely go up.