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Summer is often a popular time for dreaming about living in faraway places. But luxury clients have the ability to turn those dreams into reality—and they might turn to an agent for some help.
That’s why the recent slew of changes to golden visas, which allow individuals to live in a foreign country or gain citizenship in exchange for an investment (in the form of real estate or otherwise), may be an important piece of news that luxury agents will be familiar with this year.
As Christie’s International Real Estate’s 2024 Global Luxury Mid-Year Outlook report states, “closing loopholes in some markets can create opportunities in others.” So when some countries limit opportunities for foreign investors, others will provide more opportunities.
“The bottom line is this: money flows, and in luxury real estate, money flows tend to follow the path of least resistance,” the report states.
In the last year or so, a number of countries of interest to U.S. investors have changed their policies regarding the purchase of real estate to obtain residency, including Ireland, Spain, Hungary, Portugal and Greece. Here’s the lowdown on the changes—and where Americans can still invest in real estate in exchange for residency so they can turn their dreams of international luxury into a reality.
Spain
Spain announced the end of its golden visa program in April 2024 to help ease affordability issues in the country’s real estate market.
Launched in 2013, the program allows individuals from outside the EU to obtain residency by investing more than €500,000 (approximately $545,272) in real estate or certain types of businesses.
Prime Minister Pedro Sanchez said in a statement social media posts At the time, “housing is a constitutional right and not just a matter of speculation,” explaining the country’s decision to end the program.
Portugal
Portugal, whose golden visa program has surged in popularity in recent years, also scaled back the program in October.
At the time, the government eliminated the option to obtain residency through real estate investment altogether amid criticism that the scheme was driving up rents and house prices. The golden visa program remains in place for investors who invest €500,000 (approximately $54.5272) in job creation, scientific research or arts and culture.
Greece
In the spring of 2023, Greece adjusted its golden visa program and raised the residence threshold through investment in real estate.
Previously, foreign investors only had to invest €250,000 (approximately $272,636) in real estate across the country to obtain residency. However, with these changes, in some areas such as Athens, Varri, Vola, Voligomeni, Thessaloniki, Mykonos and Santorini, foreign investors are required to invest at least 50 RMB in real estate. million euros (approximately US$545,272) to obtain a five-year residency.
Mihalis Artemazidis | Mihalis Artemazidis Engel & Volks
Michalis Atmatzidis of Engel & Völkers Greek said he did not expect recent changes in investment plans to deter investors who are considering investing in real estate in Greece.
“Despite these constraints, there is strong demand for properties in the luxury market with new pricing and new phases of planning.”
Americans come to Greece because of family ties, business investments or because they like the lifestyle here, Artemazidis said.
Atmatzidis added that The Ellinikon, a new luxury development on the Athens Riviera that will become a smart green city with more than 9,000 new homes, is also attracting Americans and other foreigners eager to invest.
“Ellinikon Park will be a little smaller than New York’s Central Park,” Artemazidis said. “There will be the largest skyscraper in Greece, the Riviera Tower, [and a] They will also build casinos. So this is a very attractive project.
turkey
Last year, Türkiye also changed its golden visa program, slightly raising entry requirements compared with recent years.
The country launched the program in 2017, requiring real estate investors to invest at least $1 million in real estate in the country to qualify for citizenship. However, a year later, the government decided to slash this amount to $250,000.
Due to inflation and the growing real estate market, the government subsequently decided to increase the real estate investment threshold to US$400,000. Investors must hold investments for at least three years.
Malaysia
Malaysia’s My Second Home program also underwent changes last month.
The program is divided into three investment grades: silver, gold and platinum.
Under the Silver level, investors can obtain a five-year visa by investing US$150,000 and purchasing real estate worth at least 600,000 ringgit (approximately US$158,609).
Investors can obtain gold-level status and a 15-year renewable visa by investing US$500,000 and purchasing real estate worth at least 1 million ringgit (US$211,000).
For the Platinum level, investors must pay at least US$1 million and purchase a property worth at least 2 million ringgit ($423,000). Platinum members must reside in Malaysia for at least 60 days each year and can apply for permanent resident status after obtaining a Platinum Pass.
At all levels, investors must hold the property they purchase for at least 10 years.
Hungary
Hungary has relaunched its golden visa program, which came into effect this year. Unfortunately, those hoping to gain residency through the property investment route will have to wait until January 2025 to become eligible.
From January 1, 2025, investors will be able to obtain work and residence rights for 10 years by purchasing real estate worth €500,000 (approximately US$545,272) if they hold their investment for at least five years.
Saint Kitts and Nevis
In the Caribbean twin-island nation of St. Kitts and Nevis, the government last year doubled the threshold for investors to obtain residency through real estate investment.
Investors will now have to invest at least $400,000 in an approved resort hotel development for at least seven years to obtain residency, or invest at least $800,000 in a condominium or private residence, again to be held before resale. At least seven years. There is also an additional government fee of at least $25,000 (depending on whether the primary applicant has a spouse or dependents) and a due diligence fee of at least $10,000.
Other countries where U.S. citizens can obtain residency through real estate investment
In addition to the countries mentioned above that have seen changes to their golden visa programs in recent years, there are many other countries where Americans can invest in real estate to obtain residency.
In the South Pacific country of Vanuatu, investors who invest at least US$100,000 in real estate in approved areas designated by the government can obtain a one-year residence status. If investors continue to hold the visa and renew it for 10 years while paying an annual fee of 20,000 VUV (approximately US$167), they are eligible for citizenship.
The United Arab Emirates also offers residential opportunities for real estate investors and other groups. Individuals who purchase one or more properties worth AED 2 million (approximately $544,518) or more in a “freehold zone” – an area where foreigners can purchase real estate – are eligible for a five-year renewable visa.
Timothy Smith | Better Homes and Gardens Real Estate
Individuals who purchase real estate in the Bahamas worth $750,000 or more can apply for permanent residency in the country, which is a top tax haven for high-net-worth individuals.
“We’re seeing buyers coming from the United States, many from Canada, and some from South America, Europe and the United Kingdom,” Tim Smith of Better Homes and Gardens Real Estate MCR Bahamas told Inman. “There are a lot of people buying for leisure, second homes, vacation homes, but there are also a lot of people buying for tax purposes. We have no income tax or capital gains tax, so a lot of people are setting up structures for that purpose and getting permanent residency in the Bahamas.
In several other Caribbean countries, the threshold for real estate investment is much lower: in the Dominican Republic, only $200,000 of real estate is pre-approved; in St. Lucia, 30,000 government-approved developments are required within five years. Real estate investment of US$250,000; In Grenada, an investment of US$250,000 in a government-approved real estate project is required to obtain residency.
Therefore, even if the first choice country for luxury customers is no longer an option for obtaining residency through real estate investment, there are still a number of alternatives open.
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