Experts assess the prospects of banning the issuance of residence permits to Russians in countries of the former Eastern Bloc differently
LATVIA
Latvia issued residence permits in exchange for investments, including real estate, for four years. Initially, to qualify for a residence permit in Latvia, one had to purchase real estate in Riga or other major cities of the republic for at least 143,000 euros. Since September 1 of this year, the minimum investment amount has increased to 250,000 euros regardless of the region.
The investment immigration program in the country has not ended, but now Russians are temporarily banned from participating. The authors cited the goal of the amendments as eliminating threats to the state due to "Russia's military aggression against Ukraine, which threatens peace throughout Europe." This is the first time that citizens of a particular country have been banned from participating in an investment immigration program.
The full or partial resumption of issuing residence permits to Russians is envisaged in the event of the cessation of "Russia's violation of international legal norms in carrying out aggression against Ukraine," as well as if security considerations allow it, the initiators of the amendments noted.
LITHUANIA AND ESTONIA
In other Baltic countries – Lithuania and Estonia – residence permits in exchange for investments are not issued. Experts believe that the situation is unlikely to change in the near future. According to specialists from Henley & Partners, which acts as a consultant for various governments on investment immigration, the time for "golden visas" in Estonia and Latvia has not yet come.
"Investment programs initiated by governments are usually more of an economic tool rather than a political one. Moreover, each program requires significant, including political, efforts to develop and implement, especially for EU countries," experts say.
Managing Director of Tez Tour Dimitris Charitidis believes that at this stage, the likelihood that Estonia and Lithuania will change their stance on this issue due to geopolitical tensions is "extremely unlikely." The expert also notes that the Baltic countries stand apart on the issue of granting residence permits to Russians "due to the difficult history of relations with Russia, so there is not only pragmatism but also emotions."
Alexander Zaritsky, head of the land and property relations department at consulting company Heads, has a different point of view. The expert says that "cash" in Lithuania and Estonia is an expensive pleasure and banks are in no hurry to lend to their citizens for the purchase of apartments, houses and other real estate. "Over the next five years, the share of Russian owners will only grow given the decline in prices on their real estate market. Consequently, these countries will also reconsider their policy of attracting cash flows and creating more favorable conditions for private investment in their economy," says Alexander Zaritsky.
At the same time, according to some experts, Russians are not particularly interested in real estate in these countries. "Historically, these countries have concerns about Russia, which appeared in the last century and will last at least a century, so we should not expect them to end soon. Even if there were a 'golden visa,' it would be of little use in such an environment," says Maxim Rayevsky, a member of the board of directors of the company StroyInvestTopaz.
BULGARIA
In Bulgaria, the investment immigration program has been in effect since February 19, 2013. A foreigner can obtain a residence permit by investing at least 600,000 leva (about 300,000 euros) in the purchase of real estate in Bulgaria. There are no restrictions based on nationality, and the attitude towards Russian investors is more than loyal. A residence permit in Bulgaria is much more affordable than in Portugal or Spain. The country also boasts resorts.
Among the advantages of Bulgaria are a large percentage of people who understand Russian and can communicate in it after a fashion, as well as a shared past.
On the other hand, not all experts consider the shared Soviet past an advantage. "When you go there, you may feel that it is very similar to the USSR—in terms of service, mentality, and atmosphere. Most business immigrants don't like that; they want to get a 'European' level for their money," says Maxim Rayevsky.
Russians rarely buy real estate in Bulgaria to live there permanently; mostly they come for two to three months in season, experts note.
Analysts are confident that, despite the Bulgarian government having formed a coalition after recent elections that supports Eurointegration, economic interest will be at the forefront in immigration programs. "I don't think Bulgaria will engage in the same polemics as Latvia. The Latvian government was anti-Russian even before all the events in Ukraine; they never hid it, just now there is a specific reason. Bulgaria is a very poor country, I'm telling you as an eyewitness; it is unlikely to go along with this," says Alexey Luchinin, an independent real estate expert in Bulgaria.
CZECH REPUBLIC
The current President of the Czech Republic, Miloš Zeman, elected in spring 2013, publicly opposed anti-Russian sanctions and called for dialogue.
"Only the older generation may have some negative attitude towards personal contact with Russians. Modern Czech Republic will always gladly accept foreign investments. Personal attitudes towards the nation may vary, but competent politicians will always be favorable to the development of business and contacts with Russia," says Irina Kuznetsova, an expert at the Tranio.Ru online center for foreign real estate.
Purchasing real estate in the Czech Republic does not grant the right to obtain a residence permit, but it is considered a plus. There is no talk yet of issuing a residence permit in exchange for investments in real estate in the Czech Republic; such programs are not being developed. Russian buyers view real estate in the Czech Republic not as a basis for relocation, but as an investment. Income-generating properties that are converted into apartments are especially popular.
Experts believe that the Czech Republic will also not refuse Russian investments. "We are, so to speak, kindred spirits, even our languages are similar. I think our relations are long-term, serious, and long-lasting. Moreover, the current President of the Czech Republic, Miloš Zeman, has a reputation as a 'pro-Russian politician'," says Irina Kuznetsova.
MONTENEGRO
Montenegro, unlike the Czech Republic, has just joined anti-Russian sanctions. The country's president, Filip Vujanović, explained this as a desire to accelerate Montenegro's entry into the EU and NATO. At the same time, the country's leader claims that there are no anti-Russian sentiments in Montenegro. A residence permit for investments in Montenegro is ready to be issued; a corresponding law has been prepared, but the minimum property value threshold has not yet been determined.
"We must understand that the country's real estate market is currently stagnating, properties are illiquid, and they account for less than 5% of all purchases by people hunting for a residence permit," says Maxim Raevsky.
"In the long term, political events are unlikely to change the attitude towards Russian investors, since any government is interested in attracting capital from abroad," believes Dimitris Charitidis.
Ekaterina SAKHAROVA.
"Gazeta.ru"