Purchasing real estate abroad opens up possible prospects not only for a comfortable and relatively inexpensive holiday, but also for acquiring the status of a permanent citizen and resident of the country, which is so important for incoming immigrants. Which countries will provide citizenship when purchasing real estate?
These are some European states that are part of the European Union, Montenegro, as well as the countries of the Caribbean. Each of these states has its own conditions and requirements for obtaining a passport, which determine the choice of one or another country for the future place of stay.
Countries that are part of the European Union
Previously, Cyprus and Malta gave citizenship when purchasing real estate. As of November 1, 2021, Cyprus suspended its investment program. It is not possible to obtain Cypriot citizenship in 2021 by investment.
Malta has also made this procedure more complicated.
In Malta you need to invest about 1,000,000 euros with all expenses, in Cyprus 2,000,000 euros.
Other European countries
Montenegro also provides citizenship by investment (from 350,000 euros of investment); the country is currently an official candidate for accession to the EU. This will probably happen in 2025.
A Montenegrin passport allows visa-free entry into the Schengen countries.
You can get a Turkish passport by investing more than 250,000 euros in real estate in the country. The country is not part of the EU and the Schengen area.
To go to live in European countries it will be cheaper to obtain a residence permit. Then, after a few years of living in the country, it will be possible to obtain permanent residence status and citizenship based on naturalization.
Registration of a residence permit for the purchase of real estate in European countries
Obtaining a residence permit when purchasing real estate in 2021 in all the states presented below provides an advantage in visa-free travel within the European Union.
Spain
Spanish legislation regulated the amount of 500 thousand euros that an investor must invest when purchasing commercial real estate to obtain a residence permit. Both a one-time transaction and several transactions are considered. The main thing is that the investment should be at least this amount.
As well as acquiring a residence permit and resident status of the country is possible by investing 1,000,000 euros in the authorized capital of a local organization or purchasing securities in the amount of 2,000,000 euros. The Kingdom of Spain actively supports entrepreneurship.
Foreigners buying property in Spain worth over 500,000 euros are entitled to a residence permit
Republic of Cyprus
When purchasing real estate in Cyprus, worth more than 300,000 euros, you can count on obtaining a residence permit. After 5 years of residence in Cyprus, it is possible to obtain a national passport. Previously, it was possible to immediately obtain Cypriot citizenship with an investment of 2 million euros; in 2021, this program was canceled.
Bulgaria
To obtain a residence permit, or as it is called differently in Bulgaria, long-term stay, you need to buy residential or commercial real estate in the amount of 300,000 euros.
It is also possible to make a contribution of at least 125,000 euros to the authorized capital of a Bulgarian organization that provides several jobs in disadvantaged areas of Bulgaria. After 5 renewals of residence permit status, there is a possibility of obtaining a long-term residence permit, but for no more than 5 years.
Greece
This state provides the option of obtaining a residence permit when paying for real estate worth more than 250,000 euros. This amount will be enough to become a resident of Greece for 5 years. The possibility of obtaining this status also extends to the family of the real estate investor.
Greek permanent resident status can be acquired 5 years after the issuance of a temporary residence permit (RP)
Malta
Having residential property worth €250,000 in Malta is also sufficient to obtain a residence permit. If the property does not have any housing, then the price of a rented property starting from 8,750 euros per year can be taken into account.
In Malta, you can get a work permit if you invest at least 100,000 euros in a business and employ at least 30 citizens of the country.
Hungary
Hungary offers quite unique opportunities for obtaining a residence permit. The amount that an investor is required to invest in residential property is not regulated by law. But it is mandatory to have the status of a permanent resident of the country that the property must be well-equipped, and there must be 12 square meters for each person. m.
Also, the applicant for a residence permit must have a regular monthly income of at least 350 euros.
To have the right to extend a residence permit, you must stay in Hungary for at least 6 months.
Portugal
This state is known for the fact that you can obtain a residence permit here using several options:
Real estate in Portugal
- Having purchased real estate (apartment or house) worth at least 500,000 euros (the property must be registered after 10/08/2012).
- When placing a deposit in a Portuguese bank and when purchasing securities in the amount of 1,000,000 euros or more for a period of 5 years.
- When founding a company with a staff of 10 employees.
- When investing in real estate of an old fund in remote regions of countries, amounts from 350,000 euros.
An applicant for citizenship has a mandatory period of stay in the territory: 7 days in the first year and 14 days in the next two years.
After 5 years of residence, you can count on acquiring permanent residence status, and after another 6 years - on Portuguese citizenship and a passport of a European citizen.
Great Britain
Obtaining a residence permit in the UK in 2021 is directly related to investment in its economy.
Number of residence permits issued in exchange for investments in different countries
Considering that the country is one of the most expensive in terms of living standards, the conditions for obtaining a residence permit, and then permanent residence, are not easy here. UK legislation allows a contribution of 1,000,000 pounds sterling to the state economy, of which only 250 thousand can be invested in the purchase of a real estate property; the investor must invest the rest of the amount in government securities.
It is possible to obtain permanent residence under the investment program with an investment of 6.4 million euros after 3 years, with an investment of 12.7 million euros - after 2 years. Of course, not everyone can pull off such an amount.
Principality of Andorra
Andorra welcomes foreign citizens to issue them a residence permit, provided that they invest an amount of 400,000 euros or more in the purchase of real estate or other state assets. But this permit will not give the right to official employment in Andorra.
Entry without a visa with a residence permit is only possible in France, Portugal and Spain, since Andorra is not a member of the Schengen area. But its citizens can receive an annual multivisa for traveling to other European countries.
To extend the residence permit status of an applicant for citizenship, it is necessary to stay in Andorra for at least 3 months a year. Another difficult feature of the civil policy of this state is that an investor can count on obtaining permanent residence and citizenship after 20 years of being in residence permit status.
Czech
The Czech Republic is not one of the countries that provides an automatic residence permit for the purchase of real estate. But it is among those that provide attractive opportunities for becoming a resident in the future, after several years of stay on its territory.
The owner of any property in the Czech Republic has the right, when providing documents for real estate, only to obtain a multiple visa.
This is what a visa to the Czech Republic looks like
Purchasing real estate does not automatically give you the right to obtain a residence permit; it can only serve as an additional basis for a positive decision. To stay legally in the country, an immigrant can come to the foreign affairs police department to obtain a residence permit for work, study or business.
Montenegro
Montenegro offers convenient conditions for obtaining a residence permit. There is no established threshold for the minimum amount of investment in real estate, as well as requirements for the acquisition of commercial or residential property. The choice of Montenegro as a permanent place of residence for those who have not decided where they want to stay is optimal.
The only requirement for the purchased property is that it must be “clean”: no tax debts, litigation, mortgages, etc. To exclude these factors, you can request a so-called list of inappropriateness in the community cadastre, relating to the property being purchased.
Türkiye
It is quite easy to obtain a residence permit in Turkey, where the law does not provide for a minimum investment in a property, and the housing itself is inexpensive.
Tapu - this document confirms the completion of the transaction and only upon receipt of it you are recognized as the full owner of foreign real estate.
You just need to provide the local police department with some documents:
- Agreement for the purchase of real estate.
- Certificate of ownership of the object.
- Turkish bank account statement.
- Foreign passport with a valid visa.
- Receipt for payment of the state fee for a residence permit.
The initial period for which a residence permit is issued is six months, with a subsequent extension for 2 years. The country is not part of the EU and is not a member of the Schengen area.
Taxation
If a foreigner has non-resident status, then his income from the sale of an apartment will be subject to personal income tax at 30%. And a tax deduction cannot be issued.
Foreigners have the right to apply for a tax refund after purchasing an apartment. That is, return 13% of its cost (but not more than 260 thousand rubles). But for this, two conditions must be met:
- The buyer receives income subject to personal income tax and regularly pays taxes.
- At the time of receipt of income, he has the status of a tax resident of the Russian Federation.
More details about the taxation of the purchase and sale of an apartment can be found here.
With the exception of some points, the process of buying or selling an apartment for foreigners and citizens of the Russian Federation does not differ. And Russian legislation equalizes their property rights.
The only thing that a foreign citizen should definitely pay attention to is compliance with the conditions of stay on the territory of the Russian Federation at the time of concluding the transaction. Identified violations may not only result in fines, but also deprivation of acquired property.
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Caribbean Citizenship
You can also obtain citizenship by investing in real estate in the Caribbean and Oceania:
- Grenada,
- Antigua and Barbuda,
- Dominica,
- Saint Kitts and Nevis,
- Saint Lucia
- Vanuatu.
The passport of these countries allows visa-free entry into Europe. Saint Kitts and Nevis is part of the British Commonwealth; citizens of this country can also enter, study and receive treatment freely in the UK.
For these countries, it is possible to obtain a US visa under a simplified procedure. Investment amounts in real estate in these countries start from 100,000 euros in Dominica. You can submit documents for a passport online remotely.
The registration period is from 2 to 4 months. Citizenship of these countries allows you to travel almost throughout Europe without visas.
Saint Kitts and Nevis
An amazing and attractive country, known for its gorgeous views and located in the eastern part of the Caribbean Sea. There are favorable living conditions and the most simplified conditions for obtaining a passport and citizenship of St. Kitts and Nevis.
Free investments in a special fund
This country has an initial immigration policy, the main purpose of which is investment in real estate or simply in the country's economy, the so-called Country Sustainable Growth Fund.
You can invest $150,000 free of charge into the country's Sustainable Growth Fund and receive a passport remotely by filling out an application online.
For example, the founder of the social network VKontakte, Pavel Durov, who himself had never been to St. Kitts and Nevis, took advantage of this opportunity. He uses the passport of this country for visa-free travel around the world and more convenient travel. You can read more about this on the website rbc.ru.
- An additional $25,000 will have to be paid if you need to issue passports for a spouse or any other significant other. The total investment will be $175,000.
- An additional $45,000 investment would be required to obtain passports for three people: a wife and two children. The total investment will be $195,000.
- If your family consists of more than 4 people, each passport will cost an additional $10,000.
Plus there will be costs for submitting documents and Due Diligence of applicants and the state passport fee, which is paid separately.
Obtaining citizenship in the state of St. Kitts and Nevis by investment is the oldest, simplest and most enjoyable passport program in the world, operating since 1984
Buying a property
By investing an amount of $400 thousand or more in real estate, an investor can also obtain a country passport. He does not have to be present in person during registration.
The main condition is that the property must receive official approval from the Immigration Department, whose program includes mainly luxury real estate belonging to the resort area.
Considering that prices in this small island state are rather high, then you shouldn’t expect to buy large housing. For 400 thousand dollars here these are small one- or two-room apartments. And if these dimensions do not suit you, then you can enter into shared ownership of real estate with a partner, which is also not prohibited by the legislation of the country.
For a contribution of $400,000, the applicant receives citizenship and coastal real estate that can be rented out to tourists
When drawing up a purchase and sale agreement, the future owner of real estate undertakes to bear the full cost of it over the next 5 years. Together with the investor, his family members can also count on obtaining citizenship and obtaining a passport. After 5 years, a person will be able to sell real estate while retaining citizenship of the country.
Benefits of a Saint Kitts and Nevis passport
- The huge benefit of having citizenship of this country is that you can enter 154 countries of the world with visa-free entry, including all European countries of the Schengen area, the UK, Singapore and Brazil. To the USA and Canada, a visa for citizens of this state is issued in a simplified manner for 10 years.
- Citizenship in the state of Saint Kitts and Nevis is issued for life; you only need to change your passport every 10 years.
- Saint Kitts and Nevis is part of the Commonwealth of British Nations. You can come, study and receive medical care in the UK without a visa.
- Living in the country is not a prerequisite, and you can work both within the state and doing business abroad. The profits of foreign organizations in this country are not subject to taxes. You don't need to know the language and history of the state.
- You can submit documents and obtain citizenship remotely, without coming to the islands. Some passport holders have never even been to the state itself.
- In addition to the main applicant, for a small additional fee of $10,000 to $25,000, the following can receive a passport: spouse, children under 30 years of age, parents over 55 years of age.
- You can register a company and assets on a second passport. More favorable taxation.
You will learn more about what a passport and citizenship of St. Kitts and Nevis provides and how to apply for it online without leaving Russia in the free webinar.
Grenada
Grenada citizenship can be obtained:
- for a one-time investment of $150,000 in the National Transformation Fund (NTF),
- when purchasing real estate for an amount of $220,000 or more.
Investment in NTF
You can make an investment in a special National Transformation Fund (NTF) of $150,000 and receive a Grenada passport. The application and documents can be submitted remotely.
To obtain passports for a family of four: a wife and two children, a total amount of $200,000 will be required.
Additional due diligence and registration fees are required.
Family members who can receive passports along with the main applicant in 2021:
- spouse,
- children under 30 years old,
- parents,
- Grandmothers and grandfathers,
- brothers and sisters.
Investments in real estate
You can buy real estate starting at $220,000. You can invest in hotel-type real estate, which will be rented out to tourists by a management company. You must own real estate for at least 5 years. After that, it can be sold, but citizenship will remain.
Additionally, you will need to pay an administrative state fee of $50,000 to the government of the country, which will not be returned.
Pros of a Grenada passport
- You can travel without a visa to 116 countries, including China, Singapore and the UK.
- Simplified receipt of a US E-2 visa, which is issued for a period of 10 years
- Grenada is part of the Commonwealth of British States, which makes it possible to come to study and receive treatment in the UK. In the future, moving to other countries of the commonwealth will be simplified: Great Britain, Australia, Canada.
- Since 2013, the program has been updated based on the Citizenship by Investment Law number 15/2013. Now you can get a country passport in 2 months.
- There is no need to live or stay in Grenada.
- You can buy hotel-type property and rent it out with the help of a management company.
- Favorable and low taxation for citizens of the country.
Antigua and Barbuda
Antigua and Barbuda provides the opportunity to obtain citizenship of the country through the purchase of real estate in the amount of $400,000 or by investing in the National Fund a lump sum of $100,000.
In addition to the main applicant, a passport can be obtained by:
- spouse,
- children under 28 years old,
- elderly parents who are over 58 years old.
The property can be sold after 5 years.
You can travel to 132 countries around the world without a visa, including the Schengen countries, the UK and Singapore.
Dominica
Dominica allows you to obtain a passport through investment and the purchase of real estate, which can be sold after 3 years.
- You need to invest $100,000 permanently into the Dominica Economic Diversification Fund (EDF).
- Invest in real estate that must be approved by the government, starting from $200,000. After three years it can be sold.
In addition to the main applicant, citizenship can be obtained by:
- wife,
- children under 30 years old,
- parents over 55 years old.
A Dominica passport allows visa-free entry into 112 countries, including the Schengen states and the UK.
Saint Lucia
Saint Lucia offers 3 options for investing money in the economy of its country for the opportunity to obtain citizenship.
- Investment in the National Economic Fund of Saint Lucia (NEF) of $100,000 on a grant basis.
- Purchase of real estate, which must be approved by the authorities, in the amount of $300,000. Sale possible after 5 years of ownership.
- Investment in interest-free government bonds of the country $500,000. After 5 years, the bonds are redeemed and the amount is fully returned to the owner.
Thus, you can get a passport of this country for free by lending to the state without interest for 5 years.
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Members of his family may submit documents together with the main applicant:
- wife,
- children under 25 years old,
- parents over 65 years old.
After approval of the decision to issue a passport, you will have to take the oath in Saint Lucia or at its official representative offices in France, Belgium or the UK.
The Saint Lucia passport allows entry into 120 countries, including the European Schengen countries and the UK.
Restrictions on transactions for non-residents
Despite the liberality of Russian legislation, there are restrictions related to the protection of national security. All of them relate to the acquisition of land. Thus, in accordance with Government Decree No. 508 of July 5, 2001, the sale of land to foreigners is prohibited:
- Agricultural purposes.
- Municipal and state owned.
- Forest Fund.
- Subsoil and continental shelf.
Restrictions do not apply to the sale of residential space. If the buyer complies with the law when concluding a contract, he is guaranteed the protection of property rights.
In recent years, the State Duma has been considering a bill according to which deputies wanted to limit the acquisition of real estate by foreigners and foreign companies. It was assumed that the purchase of housing would be permissive in nature, and permits would begin to be issued for a period of 3 years.
But the law was never adopted due to fears that Russia would lose its investment attractiveness. Foreign citizens are mainly interested in expensive real estate in Moscow, St. Petersburg, Sochi and other large cities. Analysts believe that such a ban will negatively affect the housing market.
Residence permit in other countries
There are several other interesting countries where you can get a residence permit by investing in state real estate.
Panama
In Panama, you can also obtain a residence permit when purchasing real estate, provided that you invest at least $300,000 or €230,000 in a local property. To obtain a residence permit, an investor must present a document confirming ownership of the property and full payment for it, as well as a certificate of no criminal record.
Certificate of no criminal record in Russia
The residence permit is valid for 2 years, after which it can be replaced with permanent residence for 5 years. Members of the applicant's family (children under 25 years of age, spouse, parents aged 60 years or more) can also count on receiving a residence permit. Travel to the Schengen states is visa-free, the duration of the trip cannot be more than 3 months.
Costa Rica
The choice of Costa Rica for obtaining a residence permit is interesting because there is a direct connection between the residence permit and the Spanish residence permit. The fact is that Costa Ricans can obtain a residence permit in Spain using a simplified procedure.
To obtain a residence permit in Costa Rica, you need to pay for real estate in the amount of $200,000 or more. 9 years after receiving a residence permit, you can apply for citizenship. And already, being a Costa Rican, you can obtain permanent residence in Spain in just 4–5 months, and after 2 years you can get citizenship.
UAE
To become the owner of a residence permit in the UAE, you need to purchase any local real estate worth at least 97 thousand euros. Provided that the housing is registered in the name of all family members, they can also count on receiving a residence permit.
You can renew your residence permit as many times as you like, the main thing is to remain the owner of the real estate. It will be difficult to obtain permanent residence in the future, based only on this permit.
This is what a residence permit card looks like in the UAE
Taxation nuances
Taxes in Russia have to be paid when selling any real estate property. This could be an apartment, house, room, share, garage, premises intended for commercial use.
The tax rate and the right to tax deduction depend on whether the foreigner is a tax resident. A resident is someone who has been in the Russian Federation for at least 183 days over the past 12 months . A non-resident of the country does not fall under this condition.
When selling a property, a non-resident foreigner must pay 30% tax to the budget. He has no right to deduct tax upon purchase.
In general, the procedure for purchasing square meters by foreign individuals does not present any particular difficulties. But it has its own characteristics, so you need to know how to buy a home wisely. If the legal requirements are ignored, the transaction will be declared invalid and the foreigner may lose the property.
