Portugal has proved to be the most popular destination in Europe for investors seeking a golden visa. Full residency is granted but there is no requirement to reside. Citizenship can be applied for after six years.
The Portuguese golden visa is a central feature of the government’s drive for international investment. With the country returning to growth the real estate market offers exciting prospects for the years ahead.
Cyprus offers citizenship for investment levels of €2.0 million in real estate which is one of the big attractions of this programme. A Cypriot passport allows freedom to travel, study, work or live throughout the European Union.
Cyprus also offers residency through investment of just €300,000 allowing full family qualification. The investor visa is flexible with no requirement to live in the country.
Spain is a firm favourite for many clients considering real estate investment to obtain a golden visa. One of the larger economies in Europe offering an investor visa programme.
Invest from €500,000 in real estate to gain the Spanish golden visa. This provides a flexible residency option. Permanent residency and citizenship can be applied for at a later stage subject to certain stipulations.
Greece offers a residency visa through property investment but eventual citizenship is not available to foreigners. Greece is a member of the EU Schengen visa zone and has no minimum stay requirement.
Prospective investors need to carefully consider the status of the economy in Greece, the real estate market and related property taxes. Greece offers a higher risk investment than other European nations.
Malta offers an Individual Investor Program which is appropriate for our very high net worth clients. In addition to committing to a residence in Malta for five years the scheme requires investment in government approved funds and instruments.
The Malta visa scheme leads to citizenship within one year for suitable applicants, a passport from an EU country and hence the freedom to live anywhere within the EU. The total investment required is typically in excess of €1.2 million.
The citizenship by investment programme for Grenada is one of the newest programmes available to investors. The Grenada passport offers visa-free travel to over 70 countries including the UK.
Grenada offers a low investment threshold. Applicants need invest just $250,000 in a government approved real estate project and maintain the investment for at least 4 years.
The citizenship by investment programme for Antigua and Barbuda provides a second passport to investors offering visa-free travel to over 100 countries including the UK, EU Schengen zone and Canada.
There are several options for investment to gaining citizenship in Antigua including real estate investment of a minimum $400,000.
The St. Kitts & Nevis Citizenship by Investment Program is the oldest of its kind in the world. Established in 1984 the program grants citizenship through real estate investment to qualified applicants.
The government requires investment of $400,000 plus related government and due diligence fees. St Kitts offer visa free travel to over 120 countries. An ideal choice for a second passport.
Spanish property prices appear to be rising and could climb by 12% in 2016 according to an article published in the Spanish daily newspaper El Mundo recently. Barcelona University professor and real estate expert Gonzalo Bernardos explains the reasons behind rising prices and why the market could rise as much as 50% over the next four years.
Currently, the residential market in Spain is expanding. In the second quarter of 2015 the annual increase of housing prices was 4% and the level of transactions rose by 13.9%. The first signs of a rising market were observed in the main cities in late 2014. However, “nobody should expect the formation of a new bubble”, as all the main variables including market price, housing starts and percentage of household income devoted to making mortgage payments are far from the level they reached in 2006 and 2007.
The main reasons for the rise in price of housing are:
Once adjusted for inflation, most are worth less than half that in 2007 and about the same as in 2002. Bernardos claims that at present buying a well located home is a great opportunity, and that in 2016 prices will rise by 12%.
The willingness of banks to grant more mortgages. Today, banks have plenty of liquidity and are earning low margins on lending. Mortgage loans are attractive to the banks. The loans are less risky and lead to cross selling of products. Banks are keen to lend again in the property market and easier credit will fuel prices. The number of residential mortgages issued climbed by 28.5% in the year to July 2015.
With low returns on deposits and volatile equity markets many risk-averse investors are turning to the real estate market. Bernardos says housing offers a mix of high expected capital gains (up to 50% in what remains of this decade), and rental yields of around 3.5%, better than savings accounts.
Many households in Spain sat out the crisis in rented accommodation, waiting for house prices to bottom out, for the economy to improve and mortgages to get cheaper. With those conditions now in place and the Spanish economy growing at an annual 3.1%, Spanish families are jumping back into the market, unleashing pent up demand.
In short, Bernardos says a new stage in the housing market has begun in Spain. However, nothing will be the same as the boom and bust of recent years. All said, this is encouraging news for investors looking to buy for the Spanish Golden Visa.