July is Luxury Month at Inman. Tune in as we survey the evolving luxury market, explore emerging trends, and talk to top producers and influencers in the ultra-luxury space about how they got where they are today and the insights they’ve gained along the way. The month culminates with the announcement of the expanded Golden I Awards live onstage at Luxury Connect (July 29-30) in Las Vegas.
Summer tends to be a popular time for dreaming about a life in far-flung places. But luxury clients have the capability to turn those dreams into reality — and they’re likely to ask their agents for some assistance.
That’s why a series of recent changes to Golden Visas, which allow individuals residency or citizenship in foreign countries in exchange for an investment — in the form of real estate or otherwise — may be an important tidbit for luxury agents to familiarize themselves with this year.
As Christie’s International Real Estate’s 2024 Global Luxury Mid-Year Outlook reported, “Closing loopholes in some markets creates opportunities in others.” So, as some countries restrict opportunities for foreign investors, others will provide more opportunities.
“The bottom line: money moves, and in luxury real estate, it often follows the path of least resistance,” the report noted.
A number of countries of interest for American investors have changed their policies in the last year or so when it comes to gaining residency through a real estate purchase, including Ireland, Spain, Hungary, Portugal and Greece. Here’s the lowdown on what those changes are — and where Americans can still invest in real estate in exchange for residency, so they can turn those dreams of international luxury into reality.
Spain
Spain announced the end of its Golden Visa program in April 2024 in order to help ease affordability concerns in the country’s real estate market.
The program, which was launched in 2013, allowed individuals outside the EU to obtain residency by investing more than €500,000 (about $545,272) in real estate or certain types of businesses.
Prime Minister Pedro Sanchez said in a social media post at the time that “housing is a constitutional right and not a mere speculative business,” explaining the country’s decision to end the program.
Portugal
After Portugal’s Golden Visa program saw a huge surge in popularity in recent years, the country likewise scaled back its program in October.
At that time, due to criticism that the program was inflating rents and home prices, the government completely removed the option to gain residency through investment in real estate. The golden visa program still exists for investors who put €500,000 (about $545,272) into job creation, scientific research, or the arts and culture.
Greece
In the spring of 2023, Greece adjusted its Golden Visa program, raising the bar for residency through investment in real estate.
Previously, foreign investors could put just €250,000 (about $272,636) into real estate throughout the country in order to gain residency. With the changes, however, in select areas, including parts of Athens, Vari, Voula, Vouliagmeni, Thessaloniki, Mykonos and Santorini, foreign investors must put at least €500,000 (about $545,272) into real estate in exchange for residency for five years.
Michalis Atmatzidis | Engel & Völkers
Michalis Atmatzidis of Engel & Völkers Greece said that he does not anticipate the recent changes to the investment program to dissuade investors who are considering Greece for a future investment property.
“Despite these restrictions, with the new pricing and new phase of the program, there is a big demand for properties in the luxury market.”
Americans come to Greece because of family connections, business investments or because they enjoy the lifestyle, Atmatzidis said.
A new luxury development on the Athens Riviera, The Ellinikon, which will be a smart, green city of more than 9,000 new residences, is also attracting Americans and other foreigners eager to invest, Atmatzidis added.
“The park of Ellinikon is going to be a little bit smaller than the Central Park in New York,” Atmatzidis said. “There will be the biggest skyscraper in Greece, the Riviera Tower, [and a] casino that they will also build. So it’s a project that’s very attractive.”
Turkey
Last year, Turkey also changed its Golden Visa program, slightly increasing the barrier to entry from recent years.
The country launched its program in 2017, requiring real estate investors to put at least $1 million into the country’s real estate to be eligible for citizenship. However, after one year, the government decided to sharply cut that figure down to $250,000.
Amid inflation and a growing housing market, the government subsequently decided to increase that real estate investment threshold to $400,000. Investors must hold onto their investment for at least three years.
Malaysia
Malaysia’s My Second Home program also underwent changes just within the last month.
The program was divided into three tiers of investment: silver, gold and platinum.
Under the silver tier, investors can obtain a five-year visa with a $150,000 investment and the purchase of real estate valued at a minimum of 600,000 ringgit (about $158,609).
Investors can gain gold tier status and a 15-year renewable visa with a $500,000 investment and purchase of real estate worth at least 1 million ringgit ($211,000).
With the platinum tier, investors must pay at least $1 million and purchase property worth at least 2 million ringgit ($423,000). Platinum members must stay in Malaysia for at least 60 days per year, and are able to apply for permanent resident status after obtaining their platinum pass.
Under all tiers, investors are required to hold onto their property purchase for at least 10 years.
Hungary
Hungary relaunched a Golden Visa program that just went into effect this year. Unfortunately, those who wish to access residency through real estate investment paths must wait until January 2025 to be eligible.
As of January 1, 2025, investors will be able to gain work and residency rights for 10 years with the purchase of €500,000 (about $545,272) in real estate, if they hold the investment for at least five years.
St. Kitts and Nevis
In St. Kitts and Nevis, the dual island Caribbean nation, the government doubled its threshold in the last year for investors to gain residency via real estate investment.
Now, investors must put at least $400,000 into approved resort hotel developments for a minimum of seven years to gain residency, or at least $800,000 into a condo or private home, likewise to be held for at least seven years before resale. An additional government fee of at least $25,000 (depending on whether or not the primary applicant has a spouse or dependents) and a due diligence fee of at least $10,000 also apply.
Other countries where U.S. citizens can gain residency through real estate investment
Aside from the countries mentioned that have undergone changes to golden visa programs in recent years, there are a number of additional countries where Americans can invest in real estate in order to obtain residency.
In Vanuatu, a nation in the South Pacific, investors can gain residency status for one year with a real estate investment of at least $100,000 in approved regions designated by the government. If the investor continues to hold that visa and renew it for 10 years, while paying an annual fee of VUV20,000 (about $167), they are eligible for citizenship.
The United Arab Emirates also offers residency opportunities for real estate investors, among other groups. Individuals who purchase one or more properties valued at 2 million dirhams (about $544,518) or more in “Freehold Zones” (areas where foreigners can buy real estate) are eligible for a five-year, renewable visa.
Timothy Smith | Better Homes and Gardens Real Estate
Individuals who purchase real estate valued at $750,000 or more in the Bahamas may apply for permanent residency in the country, a top tax haven for high-net-worths.
“We see buyers from the U.S., a lot from Canada, some from South America, Europe, the U.K.,” Tim Smith of Better Homes and Gardens Real Estate MCR Bahamas told Inman. “There’s a lot of people buying for leisure, second homes, vacation homes, but there are a lot of people who buy for taxes. We don’t have income tax or capital gains tax, so a lot of people set up structures and put their permanent residency in the Bahamas for that purpose.”
In several other Caribbean countries, the threshold for real estate investment is much lower: in Dominica, just $200,000 in pre-approved real estate is required; in St. Lucia, a $300,000 real estate investment in government-approved developments for five years is required; in Grenada, a $250,000 investment in a government-approved real estate project is required for residency.
So even if a luxury client’s top-choice country is no longer an option for residency through real estate investment, plenty of alternatives are still opening their doors.
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