In the era of unprecedented globalization and mobility,
investment migration has played a significant role in driving
economic activity. In many cases, investment migration has
transformed the real estate landscape as countries worldwide
continue to introduce citizenship or residency programmes for
foreign nationals. "These programmes often require a property
investment, which is making a profound impact on real estate
markets," says Malta Sotheby's International Realty, Head
of Sales & Lettings Benji Psaila.
"Immigration stimulates economic growth and investment
programmes that require a property investment, positively influence
the real estate market by generating demand in both the rental and
sales sectors. As the demand for investment properties grow the
private property sector will continue to strengthen offering
applicants a secure investment and the potential for capital
appreciation. This is especially true in a thriving economy with a
low supply of availability, like Malta," explains Malta
Sotheby's International Realty & CSB Group Investment
Migration Advisor and IMC member, Malcolm Ferrante.
"Citizenship or residency in a stable country can offer
applicants protection of assets and rights, as well as access to
better healthcare, education and legal systems. Investing in real
estate in different countries can diversify an individual's
investment portfolio, spreading risk across different markets and
currencies," continues Psaila.
Ferrante goes on to explain "Citizenship and Residency by
Investment programmes are available in a number of countries across
the world with many of them offering investment migration through
real estate investment. These programmes are constantly evolving as
countries strive to improve and protect the quality of life and
property rights of their local population and foreign nationals
wishing to invest. Some of the most popular citizenship and
residency programmes are available in these countries;
Malta
Malta stands out as a pioneer in offering flexibility
within its investment migration programmes. Through initiatives
such as the Maltese Citizenship by Naturalisation for Exceptional
Services by Direct Investment (commonly known as MEIN) and the
Malta Permanent Residence Programme (MPRP), the country has
attracted a diverse pool of investors. These programmes are some of
the most affordable programmes available in Europe and one of the
few that offers investors the choice to lease a property as part of
their application as opposed to purchasing a property – an
option which is also available.
Under the MEIN programme, investors have the option to buy real
estate in Malta with a minimum value of €700,000 or lease a
property for a minimum annual rent of €16,000, retaining it
for at least five years from the date of the citizenship
certificate. Similarly, the MPRP allows investors to purchase a
property with a minimum value of €350,000 in Malta or
€300,000 in Gozo or the South of Malta. Alternatively, they
can opt to lease a property with an annual rent of €12,000 in
Malta or €10,000 in Gozo or the South of Malta.
Greece
In Greece, the Residence by Investment programme, commonly
referred to as the Golden Visa, has emerged as a beacon of
opportunity for international investors seeking swift residency in
Greece. However, recently there have been challenges related to
housing affordability for locals due to the influx of investment
migrants. In an effort to safeguard the interests of local
residents and promote stability in the real estate market, the
Greek government has increased the minimum value of a property
investment required to qualify for the Golden Visa programme.
Portugal
The impact of the Golden Visa programme on Portugal's
property market mirrors the challenges seen in Greece and in
response, the Portuguese government has implemented strategic
measures to safeguard the property market while promoting economic
diversification.
One significant measure taken by the government is the removal of
property investment as a requirement for obtaining the Golden Visa.
Instead, the focus has shifted towards investment in the Portuguese
private sector, fostering economic growth and job creation in other
industries.
Spain
Spain introduced its residence by investment programme in
2013, offering residency to foreign investors and their families
who invest in Spanish property. To qualify investors must commit
€500,000 to real estate, granting them the right to live,
work, and study in Spain. The visa can also be obtained by starting
certain types of businesses in Spain, holding company shares or
bank deposits worth at least €1 million in Spanish financial
institutions, or investing at least €2 million in government
bonds. Spain is, however considering tougher application
requirements, such as raising the investment requirement for luxury
properties to €1 million. In a bid to increase the amount of
affordable housing available to locals it might also follow
Portugal in ending its Golden Visa programme for real estate
purchases.
Italy
Italy offers an appealing option for individuals seeking
residency through investment. Introduced in 2017, the Italian
Golden Visa programme provides non-EU nationals with a two-year
residence permit in exchange for an investment in Italy. Unlike
other programmes, a property investment is not required for
Italy's Golden Visa. Instead, investors must commit a minimum
of €500,000 through an Italian limited company. This
investment opportunity extends to family members included in the
application. After residing in Italy for 10 years under the scheme,
participants become eligible to apply for citizenship, offering a
long-term prospect for those seeking permanent residency in
Italy.
Caribbean
The Caribbean region hosts three prominent citizenship
programmes: St. Kitts & Nevis, St. Lucia, and Grenada. These
programmes share commonalities, particularly regarding property
investment requirements. Investors have three primary options, one
of which includes property investment in a government-approved real
estate project. This option allows investors to contribute to the
local economy while obtaining citizenship in these nations.
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