It is no secret that many people looking to buy real estate abroad also consider whether it will provide the opportunity to obtain a residence permit. There are also common schemes where one plans to live in one of the EU countries but acquires real estate for a residence permit in another, where the requirements are much softer.
“It often happens that a client buys a dacha, for example, on the French Riviera or in Italy on Sardinia, but so that the family can live there for the entire season as long as they want (without having to fly in and out again), he obtains a residence permit in Cyprus or Malta. Simply because it will be faster and cheaper and involves fewer bureaucratic barriers to overcome,” says Elena Yurgeneva, Regional Director of the Elite Residential Real Estate Department at Knight Frank Russia & CIS.
“Many decide, for example, to permanently live in Spain with a Latvian residence permit. This is risky and can end badly, especially if it can be easily proven that the family permanently resides in Spain (for example, parents take their child to school there every day). With a residence permit in one EU country, you can stay no more than 90 days within a six-month period, etc. Therefore, everything must be carefully considered, and saving money is not always advisable,” says Anna Levitova, Managing Partner at W1 Evans.
Which countries are the most open for our compatriots today?
Costa Rica
Don’t be surprised that the list starts with Costa Rica, which is located in a completely different hemisphere. The thing is that citizens of Costa Rica can obtain a Spanish residence permit in a simplified procedure. And they have one of the lowest entry thresholds.
To obtain a residence permit, it is enough to purchase real estate worth $200,000. The country is located quite far away, but if you are patient, you can later obtain European citizenship.
“After nine years, you can apply for citizenship. Citizens of Costa Rica obtain permanent residency in Spain in four to five months, and after two years, citizenship,” says Yulia Kozhevnikova, leading expert at Tranio.
Latvia
Until recently, to obtain a residence permit, it was enough to purchase real estate worth €250,000. The property must undergo an independent appraisal confirming that it is worth at least €80,000. Also keep in mind that a fee of 5% of the property price will be required. As a bonus, in addition to the residence permit, the investor gets the right to work in Latvia and a driver’s license valid in all EU countries.
“As a rule, real estate in this country is chosen for three reasons: first, minimum costs (compared to other states), security and visa-free entry to all EU countries and the USA, and third, for personal pleasure and recreation,” says Levitova.
However, it should be noted that the country has long wanted to tighten the rules for obtaining a residence permit. In particular, amendments have already been prepared that propose excluding Russia from the list of countries whose citizens can apply for a residence permit after purchasing real estate. Additionally, it has been reported that the Latvian Saeima’s commission on defense, internal affairs, and corruption prevention has prepared a draft law that would allow military intelligence to check foreigners applying for a residence permit.
Greece
In 2013, the Greek parliament passed a law granting a five-year residence permit on the condition of purchasing a home worth at least €250,000. The residence permit can be renewed as long as the house or apartment remains in ownership. The permit is issued to the property owner and his entire family (spouse and minor children). This will allow them to permanently live in Greece and travel freely throughout the Schengen area.
However, it should be noted that years spent in Greece under this type of residence permit do not count towards obtaining a Greek passport. Also, the Greek residence permit does not grant permission to work in the country.
Malta
To settle here, you need to own a home worth €250,000, or rent a home for no less than €8,750-€9,600 per year. The minimum purchase or rental amount depends on the locality.
“You can also obtain a work permit (the local equivalent of a residence permit) provided that at least €100,000 is invested in a local business and at least three Maltese citizens are hired,” advises Kozhevnikova.
Bulgaria
Here, the minimum amount is 600,000 leva (approximately €300,000). You can either make the purchase as an individual or arrange the transaction through a Bulgarian company in which the applicant owns at least 50% of the capital. After five years of residence permit, you can apply for a long-term residence permit.
Cyprus
An applicant for a residence permit must purchase real estate worth at least €300,000 (excluding VAT). Moreover, the property must be new and purchased from a developer: the accelerated procedure for obtaining a residence permit does not apply to the purchase of secondary properties. The investor must pay at least €200,000 and confirm that the purchase is made with funds from sources outside Cyprus.
Additionally, for the residence permit, you need to prove that the annual income (outside Cyprus) is at least €30,000. This can include salary, dividends, rental income, interest from bank deposits, pension, etc. For a spouse and each child, proof of at least €5,000 in income is required, as well as €8,000 for each parent of the applicant and spouse. Two other important conditions: you must have at least €30,000 in a Cypriot bank account for a period of three years, and you must not have a criminal record or be under investigation.
The status of permanent resident does not impose any restrictions on the time spent in Cyprus. Actual residence in Cyprus leads to citizenship after seven years of residence.
Portugal
Since 2013, Portugal has significantly simplified the conditions for obtaining a residence permit for foreign investors, abolished requirements for minimum stay in the country, and relieved buyers from the need to become tax residents. You can apply for citizenship after purchasing an apartment or house worth at least 500 thousand euros. Another option is to place a deposit in a Portuguese bank or buy local securities worth at least 1 million euros for five years. An alternative is to found a company and create at least ten jobs.
The mandatory stay period in Portugal since 2013 for investors has been reduced to seven days in the first year and to 14 days in the next two years. After five years, you can apply for a permanent residence permit, and after six years, you can apply for Portuguese citizenship and a European passport.
Spain
Since September 29, 2013, a law has been in effect here on granting residence permits to foreign investors in five areas, including those purchasing a house or apartment worth at least 500 thousand euros per person or making deposits in Spanish credit institutions of more than 1 million euros.
“Your newly acquired property must be purchased exclusively with personal funds. A mortgage can be used only if you invest at least 500 thousand euros of your own funds,” clarifies Anna Levitova.