European Residency by investment (RBI) programs have long stood as an attractive path for business opportunities, personal freedom, and strategic planning, granting legal European Residency rights to investors who make substantial investments.
Amid these turbulent times of economic instability, geopolitical threats, and tax obligations, high-net-worth individuals are increasingly seeking foreign residency programs that provide safety, high lifestyle standards, global mobility, and enduring stability. European Residency programs, such as Greece, Portugal, Malta, Cyprus, Italy, and Latvia, provide investors with a solution to achieve their desired outcomes.
Investors curious about the ins and outs of the increasingly popular method of obtaining residency, and who have questions about the requirements, benefits, and potential drawbacks, will find the answers in this article, which addresses the 20 most common questions investors ask as they explore pathways to secure RBI programs.
Top 19 Questions about European Residency by investment
Here are some of the key questions investors typically consider before pursuing a European Residency by investment permit.
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How Does European Residency by Investment Differ from Citizenship by Investment?
While RBI programs grant investors residence status, Citizenship by Investment (CBI) programs offer them full nationality rights. The main distinction between the two programs lies in their benefits. RBI programs allow people to live and work in a country, whereas citizenship grants them complete nationality status with passport privileges and full citizenship rights. Some European Residency programs may pave the way to citizenship after several years, but this depends on the specific laws that govern each country.
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What Are the Advantages of European Residency by Investment?
RBI programs provide investors several advantages, including:
- Visa-Free Travel: Various European Residency by investment programs provide visa-free entry to the Schengen Area.
- Tax Benefits: Countries such as the UAE and Greece have tax systems that provide attractive benefits to minimize overall tax payments and maximize wealth growth.
- Enhanced Quality of Life: Obtaining a European Residency, whether in Portugal, Italy, Latvia, Greece, Malta, or Cyprus, enables investors to access top-tier healthcare services and educational facilities and enjoy high living standards at a moderate cost of living compared to other European countries.
- Real Estate Investment Opportunities: Some programs, such as the Greek Golden Visa and Cyprus Golden Visa, allow investors to obtain European Residency through property acquisition while providing them with the chance to build long-term property value.
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Are There Requirements for Physical Presence or Time to be Spent in the Host Country?
Some programs mandate spending a certain number of days per year in the country, while others have very minimal stay requirements.
| Country | Physical Presence Required |
| Portugal | Investors must spend at least 7 days per year on average. |
| Greece | Golden Visa holders are not required to live in Greece or even visit the country frequently to keep their residency. However, they have to come back every five years to update their biometric data. |
| Italy | No minimum stay is required to maintain the investor or Golden Visa permit. |
| Malta | Malta’s Permanent Residence Program does not mandate any minimum stay requirement to maintain residency. |
| Cyprus | Golden Visa holders must visit Cyprus at least once every two years to keep the permit active |
| Latvia | There is no minimum stay requirement to renew the residence permit; however, one visit to the country per year is required to renew the residence card. |
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How Does the Application Process Work?
The following steps outline the complete process for obtaining European Residency by investment:
- Choose the Country and the Investment: The applicant is required to select the country and a qualifying investment option and choose between the various routes, including real estate investment, government bonds, and business ventures.
- Submit the Documents: The applicants should submit all required documents, which include personal information, clean criminal records, financial data, proof of funds, and supporting documentation.
- Undergo Due Diligence: The process requires a complete background examination to confirm that all information is accurate. Investors who work with trusted authorized agents will receive complete guidance to avoid any mistakes that would take place during their application process.
- Receive the European Residency by investment Permit: The official residency permit will be issued to investors once it is approved. This permit grants investors legal residence in their selected country.
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What Are the Minimum Investment Requirements?
The investment threshold for European Residency by investment programs varies between one program and another. For instance, it starts at €50,000 in Latvia and reaches up to €2 million in Italy. The minimum real estate investment required to obtain the Cypriot residency starts at €300,000, while Malta requires €120,000, Portugal €500,000and Greece €250,000.
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What Types of Investments Qualify?
The investment options for RBI programs differ between countries, but each nation offers a variety of qualifying investment routes. These can include:
- Real Estate Investments: Real estate investments are usually considered a preferred choice for investors, especially in countries such as Greece, Cyprus, and Malta. Some nations enforce particular rules regarding real estate investments for their European Residency by investment programs. For instance, Portugal’s Golden Visa program excludes real estate investments and any funds related to real estate from its eligibility requirements. Other countries are setting higher investment thresholds for property investment in major cities. Greece, for example, increased the minimum threshold for real estate investment in Athens and major cities to €800,000, and to €400,000 for properties in rural areas or less densely populated cities or islands. It also provides the option of investing €250,000 in real estate under renovation or in the conversion of commercial properties into residential use.
- Business Ventures: Investors who establish businesses that create employment opportunities can meet the requirements for various programs. The Italian Startup Visa program, for example, enables investors to support innovative startup businesses. The investment programs of Portugal and Latvia enable investors to support employment and economic development by investing in limited company shares, as well as equity and investment funds.
- Government Bonds: It is considered a low-risk option. Investing €2 million in Italian government bonds provides a secure and risk-free way to obtain residency in Italy.
- Donation: The countries offer European Residency by investment programs, which grant residency rights to donors who contribute to national development projects or funds. The Portuguese Golden Visa program grants residency to investors who donate €250,000 to support national cultural heritage initiatives.
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Does the European Residency By Investment Eventually Lead to Citizenship?
In most of these European countries, residency permits obtained through investment can eventually lead to citizenship, but the rules, timelines, and requirements vary significantly:
| Country | Minimum Residency | Notes |
| Portugal | 5 years after obtaining the Portugal Golden Visa. | Must demonstrate ties to Portugal (basic knowledge of Portuguese language required) |
| Greece | 7 years of continuous legal residence | Must fulfill language and integration requirements to be eligible. |
| Italy | 10 years of legal residence | |
| Malta | – | – |
| Cyprus | 7 years of permanent residence | Citizenship can be applied for after fulfilling residency and other criteria. Applicants should pass a Language test at B1 level. |
| Latvia | Five years of legal residence before applying for permanent residency, and ten years to apply for citizenship. | Applicants must meet language and integration requirements. |
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Can family members be included?
Most European residency by investment programs allow family members to be included in the application, but the rules vary by country. Here’s a breakdown:
| Country | Eligible Family Members |
| Portugal | Spouse, minor dependent children, full-age dependent children who are studying, dependent parents over the age of 65 years |
| Greece | Spouse, dependent children (up to 21, depending on education status) |
| Italy | Spouse, children under 18, and dependent parents, provided they meet specific requirements |
| Malta | Spouses, children, parents, and grandparents in their application |
| Cyprus | Spouse, dependent children (under 18) and dependent parents |
| Latvia | Spouse, dependent children (under 18) |
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What Are the Tax Implications?
European countries that grant residency through investment programs can have substantial tax implications. All nations listed below consider an individual a tax resident when they stay more than 183 days annually within their borders. Here’s a breakdown:
| Country | Tax Framework |
| Portugal | 20% flat tax on Portuguese income; exemptions on foreign income[1] |
| Greece | €100,000 flat tax option for 15 years on foreign income[2] |
| Italy | €100,000 flat tax for 15 years; wealth tax on foreign assets[3] |
| Malta | 15% flat rate on remitted income; €15,000 minimum tax[4] |
| Cyprus | Cyprus offers a 12.5% corporate tax rate. No inheritance, wealth, or gift taxes[5] |
| Latvia | No wealth or inheritance taxes, 20% capital gains tax |
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Does the Process of Obtaining Residency Through Investment Affect the Citizenship Status of the Investor?
The acquisition of foreign residency does not affect the investor’s current citizenship status, although it may lead to tax implications.
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Does the Residency Status Obtained Through Investment Programs Extend to Family Members of the Investor?
The European Residency by investment status does not pass down to future generations because they need to meet their own eligibility requirements.
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What Happens if the Investment Is Sold or Withdrawn?
The rules regarding maintaining residency status through investments differ between countries and programs because they link residency to the ownership of qualifying assets. The program allows investors to change their type of investment, but selling their investment before completing program requirements will lead to the loss of their residency permit.
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Is the Investment Refundable?
The possibility of getting back the investment funds depends on the nature of the investment. For instance, a real estate property can be sold after a certain period of time; however, it must be maintained to keep the European Residency by investment permit valid. The main applicant can sell or retrieve his investment after obtaining a permanent residence or citizenship, but the process duration and requirements depend on the country and program specifics.
For example, when investing in investment funds in Portugal or in companies in Latvia or Italy, the invested funds can be recovered after obtaining permanent residency or citizenship.
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What Are the Typical Reasons Behind Rejecting an Application?
The main reasons for application denial include missing information, providing wrong documents, an unclean criminal history, as well as insufficient funding sources.
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Are Language Skills Required?
The requirements for language proficiency for residency or citizenship vary between programs because some have no language requirements, while others require basic proficiency. EU Golden Visa programs usually do not require language proficiency, unless applicants want to apply for citizenship. For instance, Greece mandates passing a Greek language test to obtain citizenship. Applicants for Portuguese Golden Visas are not required to take the language exam to be granted a resident permit, but they must pass the test to become citizens. Latvia, as well, does not mandate language proficiency for European Residency by investment permits, but applicants must pass the basic Latvian language test at Level A2 if they want to obtain its citizenship.
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Can Residency by Investment Be Revoked?
The program authorities will revoke residency status when investors violate legal rules or stop maintaining their required investment as per the program’s regulations.
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Is There a Renewal Requirement for Residency Permits?
Applicants must renew their residency permits periodically, and they need to prove ongoing compliance for both investment and residency requirements when they seek to renew their residency permits.
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How Are Changes in Family Circumstances Managed?
Applicants need to notify authorities about family changes, including marriage and childbirth. Updating their European Residency by investment status requires extra documentation and financial proof.
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What Are the Benefits of RBI for Children’s Education and Future?
RBI programs provide children with access to premium educational facilities and secure high-standard living conditions, which lead to enhanced prospects for their future growth.
For more information about the European Residency by Investment Programs, please contact us via WhatsApp.
Read more: Choosing the Best European Residency Program: 5 Things to Consider
[1] https://taxsummaries.pwc.com/portugal/individual/other-tax-credits-and-incentives?
[2] https://minfin.gov.gr/en/tax-policy/tax-guide/income-taxation/?
[3] https://www.agenziaentrate.gov.it/portale/web/english/nse/individuals/taxregime-newresidents-individuals?
[4] https://assets.kpmg.com/content/dam/kpmg/mt/pdf/2017/12/residence-programme-rules.pdf?
[5] https://taxsummaries.pwc.com/cyprus/corporate/taxes-on-corporate-income?