Today, a residence permit in Europe has become especially in demand among foreigners in conditions of closed borders. You can quickly get a residence permit under the “Golden Visa” programs by purchasing real estate or other assets for a certain amount. The most popular immigration programs in Europe are offered by Greece, Cyprus, Spain, Portugal, Latvia, and Malta.
Latvia’s program was popular until 2014 when the Seimas passed an amendment to raise the investment threshold required to obtain a visa. There is a restriction in Cyprus – a maximum of 700 Golden Visas can be issued there per year, and from November 1, 2020, the local government has suspended the citizenship program, although the conditions for a residence permit are still valid. Spain and Portugal are consistently in high demand among wealthy investors due to a developed real estate market, a large influx of tourists, and potentially high yields.
The Greek Golden Visa program is especially popular. To buy real estate in Greece, you do not have to come to the country in person, which is especially convenient in conditions of closed borders.
The Greek “Golden Visa” has the most favorable conditions for investors: the investment threshold is low, real estate prices are more affordable than in other European countries, and there is also an opportunity to receive a stable rental income. Let’s take a closer look at these factors.
Low investment threshold
Greece offers the cheapest residence permit for investment: the applicant must buy one or more properties with a total value of at least 250 thousand euros.
The same amount is indicated in the Latvian program, however, according to its terms, the investor must pay a 5% duty (this is a non-refundable payment), which raises the investment threshold to 262.5 thousand euros. In Cyprus, however, it is necessary to purchase one or two objects in a new building for an amount of at least 300 thousand euros (+ VAT).
The minimum investment threshold in Malta starts at € 330,000. It includes the purchase of real estate for 270 or 320 thousand euros, depending on the location, or rent in the amount of 50 or 60 thousand euros for 5 years. Besides, it is necessary to buy government bonds for 250 thousand euros and pay 30 thousand euros in duties.
A residence permit in Portugal can be obtained by purchasing real estate for 500 thousand euros. The size of the minimum investment may be lower if the object requires restoration – in this case, the threshold is reduced to 350 thousand euros. There are also benefits for real estate located in a sparsely populated area. The new object there must cost at least 400 thousand euros, and the subject to be restored – 280 thousand euros.
As a result, when buying liquid objects to obtain a residence permit, their cost should start from 500 thousand euros – the same amount as the starting price is offered by the Spanish program.
The ability to buy several objects or take part in a large project
Greece, Spain, and Portugal programs allow the purchase of multiple properties, the total value of which is equal to or exceeds the minimum investment threshold. Latvia provides such an opportunity only for small towns (excluding the popular Riga and Jurmala). In Malta, you can only invest in one property.
From July 2021, other restrictions will begin to apply in Portugal: the country’s authorities will no longer issue a residence permit for investments in real estate in Lisbon, Porto, and other coastal regions of the country.
Low prices and upside potential
The price of real estate in Greece in the center of Athens is lower than in the other four countries: a square meter here costs an average of 1.5 thousand euros – almost 2.5 times cheaper than in Spain and Portugal.
At the beginning of 2021, a square meter in Barcelona costs an average of 4,009 euros, according to the Idealista portal, in Madrid – 3,682 euros. The average price per square meter in the center of Lisbon is 4,291 euros, in Riga – 2,017 euros and 4,050 euros in Valletta, the capital of Malta.
The potential for price increases in Greece is greater than in other countries: according to the official data of the Bank of Greece for 2020, real estate in this country is 34% below the peak level of 2008, so in Athens, the most likely to be a rapid and significant increase in property values. Prices in Spain are approaching their peak values, while in Latvia prices have already reached pre-crisis levels. In Portugal and Malta, property values have already exceeded 2008 values.
Rental income
Often, holders of the “Golden Visa” do not need the purchased property, so they rent it out to recoup their investment. In Greece, Latvia, Spain, and Portugal, investors can do it freely, and in Malta, it is prohibited to rent an object for the first five years.
The most profitable strategies are to rent out real estate for short or medium-term rent (for 2-9 months). Short-term rentals potentially generate higher returns.
Athens guarantees one of the highest yields in Europe. The average yield in the center of Lisbon is 4.22%, according to Numbeo, in Barcelona – 4.07% and Madrid – 3.88%. For the center of Riga, the average yield is 4.60%, for Valletta – 4.96%. In Athens, this figure is 4.78%.
Investors who need a Golden Visa to Greece would be wise to invest their funds in the purchase of apartments in the center of Athens to rent them out. This scenario will allow you to get not only an investor visa and an “alternate airfield”, but also a foreign exchange income of over 5% and the potential for real estate value growth in the future.
Read more: How to get a residence permit for real estate in Europe:? Useful tips for buyers.
