Citizenship through Real Estate Investment
With turmoil in equity markets and plunging commodity prices the attraction of real estate as an investment category remains as strong as it ever ws.
Many countries in Europe saw real estate prices crash from their highs in 2008. But now with economies well on the way to recovery prices are starting to rise but are still below their peak in countries such as Spain, Portugal and Cyprus.
To add to the attraction of real estate investment these countries are offering residency in return for a minimum investment. In Spain and Portugal the limit is €500,000, Greece €250,000 and Cyprus €300,000.
The rules for each programme differ. That includes family qualification, fees and timescales. One of the key differences is the time it takes to gain citizenship, and whether this is possible at all.
Cyprus is the ultimate programme for gaining citizenship and an EU second passport quickly. However the investment needs to be in excess of €2.5 million.But this does lead to a passport within 2-3 months and then the freedom to live, work, study and travel anywhere within Europe, including the UK.
The alternative in Cyprus is the residency programme at €300,000 and applying for citizenship at some future time. But Cyprus is not part of the EU Schengen zone so does not offer the freedom of movement that other countries such as Spain and Portugal offer through their residency schemes.
Greece is the cheapest residency programme with a required investment of just €250,000 into real estate. Property taxes are higher than Portugal and Spain and these must be factored. Greece is a member of the Schengen zone and citizenship can be applied for after 7 years of residency.
Spain and Portugal offer residency through investing €500,000 in real estate. Both countries are members of the Schengen zone allowing freedom of movement for anyone with residency. The key difference between the programmes is the route to citizenship. With Spain it requires 10 years residency before applying for citizenship. In Portugal it can be applied for after 6 years, without the requirement to reside in the country.
Recent Forum Discussion