Real estate investment in Europe offers more than just property ownership. For high-net-worth individuals, it can be a pathway to residency and citizenship. Zlata Erlach, Head of the Austrian office, Caribbean Investment Programs Expert at Immigrant Invest, provides essential tips on how to invest in real estate to secure residence permit in the EU, focusing on key countries like Cyprus, Malta, Spain, and Greece.
Why Foreigners Invest in EU Real Estate Property
Investing in European real estate is appealing for three main groups of reasons:
- The European Union offers political stability, strong economies, and a high standard of living.
- Real estate markets in many EU countries provide solid returns on investment.
- For non-EU nationals, investing in real estate can serve as a strategic route to securing a residence permit and, over time, gaining citizenship.
Many investors choose European properties for access to top-tier education, healthcare, and travel opportunities within the Schengen Area. Also, owning property in Europe can enhance personal and business networks, further increasing the appeal for global investors.
Investing in European real estate is a way to diversify their portfolios. With a stable property market, Europe provides a relatively safe investment environment, especially compared to regions with more volatile markets. Investing in European real estate can act as a safeguard against inflation, ensuring financial stability over the long term.
Additionally, several EU countries offer favourable tax regimes for real estate investors. These include:
- reduced property taxes;
- exemptions on capital gains;
- no inheritance taxes.
These tax incentives can significantly boost the return on investment, making European real estate a compelling choice for international investors.
Buying real estate in Europe can lead to a residence permit or citizenship. Below, we highlight key countries that offer such opportunities.
How to Get Residency in Europe by Buying Property
Residency through property investment is possible in several European countries. Below, we outline the process for three popular destinations.
Cyprus grants permanent residency by a €300,000 real estate investment. Applicants must also prove they have a stable income of a minimum of €50,000 from abroad.
The residency permit is granted for a lifetime, extending its benefits to the investor, their spouse, and their children. After the investment is completed and all necessary documents are provided, the residency is usually approved within a period of two months. This makes Cyprus one of the fastest options for securing European residency by real estate investment.
Malta offers both residency and permanent residency by real estate investment:
- Malta’s Global Residence Program requires a minimum investment of €30,000 in renting real estate. Under this option Investors can also obtain a special tax status. This pathway is particularly attractive for those who want to enjoy Malta’s tax benefits while residing in the country.
- The Malta Permanent Residence Programme (MPRP) requires a minimum investment of €150,000 in renting real estate, along with a government contribution and a donation. This program grants a residence permit that enables the holder and their family to reside in Malta without time restrictions.
Both investment options offer visa-free access to the Schengen Area, with no obligation for permanent living in Malta.
Spain offers residency by a minimum property investment of €500,000. The Golden Visa allows investors to live and work in Spain, with the option to include family members. There are no requirements to stay in Spain for a certain number of days each year, making it a flexible option for investors who travel frequently.
Spain’s Golden Visa program provides substantial long-term advantages. After residing in Spain for five consecutive years, investors become eligible for permanent residency. Following a decade of continuous residence, they can apply for Spanish citizenship.
Greece Golden Visa program provides residency with a €250,000 property investment. The residence permit is renewable every five years, as long as the property remains in the investor’s possession. This program also includes the investor’s spouse, children, and parents.
With no mandatory stay and an expedited application process, Greece’s Golden Visa stands out as one of the most straightforward and attainable residency programs in Europe.
How to Get EU Citizenship by Buying Property
Malta’s real estate market provides a path to citizenship. By investing at least €700,000 in Maltese property, along with a contribution to the national development fund of €600,000 and a charitable donation of €10,000, investors can apply for Maltese citizenship after one to three years of residency. This investment route is part of the Malta Citizenship by Naturalisation for Exceptional Services by Direct Investment.
The island nation offers easy access to Europe, North Africa, and the Middle East. Also, Malta’s English-speaking population and strong financial services sector make it an attractive destination for international investors.
Conclusion
Investing in real estate in Europe is a strategic way to gain residency or citizenship. Countries like Cyprus, Malta, Spain, and Greece offer attractive programs that allow investors to secure a European residence permit, with Malta even providing a pathway to citizenship. For high-net-worth individuals, these opportunities provide not only a valuable investment but also access to the many benefits of living in the European Union.
