Investors Favor Europe’s Residence by Investment Programs for Domicile Diversification

Millionaire migration is back on track after a two-year dip caused by the pandemic, and 2023 is predicted to be a boom year, with a record 122,000 relocating millionaires forecast in the Henley Private Wealth Migration Dashboard.

Among them are many affluent investors who continue to utilize investment migration programs to diversify their wealth and lifestyle portfolios and secure access to prime alternative jurisdictions, with residence rights for their families enabling them to live, conduct business, and receive quality education and healthcare, among many other benefits.

With countries vying to attract investment from the world’s wealthy, Europe’s residence by investment programs (known to many as ‘golden visas’) consistently generate the most interest among those seeking advice on domicile diversification. Europe offers several options that are perennially attractive as an insurance policy against economic and political risk, providing the opportunity to physically relocate to a desirable destination in the Mediterranean or elsewhere in the European Union as well as ease of travel within Europe’s Schengen Area.

A trusted ranking for international optionality

To guide those exploring their options, Henley & Partners offers several interactive tools, including two indexes, the Global Residence Program Index and the Global Citizenship Program Index, which provide comprehensive comparative analyses of the world’s leading residence and citizenship by investment programs. The indexes are available to assist investors in strategic decision-making, enabling them to create bespoke rankings of programs according to the factors that matter most to them and their families.

With key factors that are assessed including the host country’s reputation, quality of life, tax benefits, and investment requirements, it is not surprising that European nations dominate the Global Residence Program Index rankings overall. With each offering unique pull factors and charms, we consider the top contenders — Portugal, Greece, Italy, Switzerland, Malta, and Spain.

Portugal is here to stay and consistently retains the prime position

The Portuguese government has confirmed that it will NOT terminate its Golden Residence Permit program as had been reported earlier in the year. Instead, it has proposed to do away with real estate-linked investment and will focus instead on employment creation, capital transfer options to be applied in support of arts and culture (minimum EUR 250,000) or scientific research, acquiring shares in non-real estate linked collective investment entities, or incorporating a commercial company headquartered in Portugal (EUR 500,000). The minimum investment amounts for the various capital transfer options may be reduced by 20% in low-density territories.

Portugal ranks as the number one golden visa program overall in terms of enquiries received and applications processed by Henley & Partners in 2023. It also consistently takes the top spot on the Global Residence Program Index, a position it has held for years.

Portugal’s Golden Residence Permit Program is a five-year residence by investment program enabling non-EU nationals the right to live and work in the cosmopolitan country and enjoy visa-free travel across Europe's Schengen Area.

Additional benefits include an attractive taxation system, exemptions on family gifts, access to world-class healthcare, and eligibility to apply for citizenship after five years as a legal resident, while keeping other citizenships.

Although acquiring property is expected to no longer be an option under Portugal’s program, there are a number of other golden visa programs in Europe with similar benefits that do offer real estate as an investment pathway, such as Greece and Spain.

Greece’s attractive golden visa

The Greece Golden Visa Program is another extremely popular option for international investors who are drawn to the temperate Mediterranean lifestyle as well as a host of tax incentives. Greece’s residence program has steadily gained in prominence, with enquiries to Henley & Partners growing by more than 50% in 2022 compared to 2021 and this year on track to exceed last year’s demand.

The Greece Golden Visa is one of Europe’s most affordable residence programs with no requirement to reside in the country in order to maintain residence. A real estate investment of EUR 250,000 gives successful applicants and their families visa-free access across Europe’s Schengen Area within two to three months of applying, and the property may be sub-let. Investors can apply for Greek citizenship after seven years of legal residence.

New changes were implemented from 1 August 2023, with the real estate investment increasing to USD 500,000 in certain parts of Greece, including most of Athens, Thessaloniki, and the islands of Mykonos and Santorini.

Italy offers options for investors

Italy is the third most popular European residence program in 2023 in terms of enquiries received by Henley & Partners, and remarkably, by the end of Q2 we had already exceeded the full 2022 enquiry numbers.

The Italy Residence by Investment Program requires no permanent stay in the country and ensures visa-free travel in Europe’s Schengen Area as well as the option to acquire Italian citizenship after 10 years of residence, under special conditions.

Italian residence status can be achieved through two program options — the Investor Visa Program or the Elective Residence Program.

To qualify under the Investor Visa Program, one must invest either EUR 2 million in government bonds, EUR 500,000 in company shares (EUR 250,000 for start-ups), or EUR 1 million in philanthropic or cultural projects. There is no requirement to spend any minimum number of days in the country under the Investor Visa Program.

The Elective Residence Program is a renewable long-term stay option valid for a maximum of one year for those with a stable foreign annual income above a certain threshold who intend to settle in Italy but not work in the country, making it ideal for retirees.

The tax benefits for newly domiciled high-net-worth individuals who have transferred their fiscal and administrative residence to Italy include the option of an annual flat tax sum of EUR 100,000.

Business-friendly Switzerland 

Switzerland is consistently favored by ultra-high-net-worth investors for many reasons, including its first-class infrastructure, excellent banking facilities, efficient and reliable public services, attractive lifestyle, and healthy environment.

Many large corporations have chosen the Alpine country for their European or global headquarters and its business-friendly approach also attracts small- and medium-sized enterprises and private entrepreneurs.

Financially independent individuals not employed in Switzerland can pay a prescribed minimum in net annual taxes to acquire a residence permit regardless of their age.

The Swiss offices of Henley & Partners are well positioned to provide legal and administrative advice and support services on options surrounding the Swiss Residence Program.

Malta offers island life in Europe

Many foreign investors who have EUR 500,000 or more in capital (with a minimum of EUR 150,000 in financial assets) have been drawn to cosmopolitan Malta’s superior caliber of life, and purchased or rented real estate to qualify for residence rights. The Mediterranean dual-island nation offers an excellent quality of life and diversified economy with established industries such as manufacturing, gaming, and IT — the first regulatory framework for cryptocurrency was established in Malta — attracting many affluent investors from all over the world.

There are mixed capital requirements to qualify, and the contribution varies depending on whether real estate is purchased or rented, but the minimum is EUR 175,000 and the processing time is four to six months.

Malta offers the opportunity to include parents, a spouse, children, and dependent grandparents in the main application, and while there is no residence requirement, the Maltese certificate of residence ensures the right to reside, settle, and stay in the highly advanced nation of Malta, which has excellent sea and air links to Europe, Asia, and North Africa.

Soaring interest in Spain

The Spain Residence by Investment Program has seen a significant rise in popularity, with enquiries shooting up by 155% in 2022 compared to 2021 and well on track to exceed 2022 levels this year.

A minimum real estate investment of EUR 500,00 in one or several properties secures a three-year residence permit (renewable) for the main investor, as well as their spouse or partner (including unmarried or same-sex unions), all economically dependent children (adult children must be full-time students), and parents over the age of 65. 

There is no requirement to relocate and properties can be sublet.

Spreading jurisdictional risk

Designing an investment migration portfolio that spreads jurisdictional risk in terms of investment and personal access rights is essential in the current environment. Each European residence program offers a unique combination of lifestyle and investment opportunities, and Henley & Partners provides tools and expert advice to help find the best fit for your family’s needs, now and in the future.