Residence permit by purchasing real estate in Europe

Programmes that allow individuals to obtain a residence permit by purchasing real estate are in place in several European countries and are among the most popular immigration tools for investors and wealthy individuals. Such programmes essentially offer foreign citizens the right to temporary or permanent residence in a European Union country, provided they purchase real estate of a certain minimum value and meet additional requirements. The main objective of these programmes is to stimulate foreign direct investment in the economy, particularly in sectors such as construction, tourism and services. In return, investors are given the opportunity to live in the country, travel freely within the Schengen area, and in some cases, apply for citizenship after a certain period of residence.

Each country sets its own thresholds and conditions. For instance, in Cyprus, investors can obtain a residence permit by purchasing real estate worth €300,000 or more; in Greece, the threshold is €250,000. In some countries, it is possible to purchase several properties, provided their total value meets the established minimum. It is important that the property is paid for with the investor’s personal funds and not with a loan or credit. Bank transfers must go through verified EU financial institutions and documents confirming the source of the funds must be attached to the application.

The process of obtaining a residence permit usually involves several stages. First, the applicant selects a property and concludes a purchase agreement. Then, the title deed is registered, after which an application package containing the applicant’s passport, proof of purchase, an extract from the property register, proof of medical insurance, a certificate of no criminal record and proof of financial solvency is submitted to the immigration authorities. After reviewing the application and verifying the origin of the funds, the authorities will issue a residence permit valid for one to five years, which can be extended if the property is retained. Some programmes allow family members to be included — spouses, minor children and sometimes parents.

It should be noted that having a residence permit does not necessarily mean that you are a tax resident. To become a tax resident, you must live in the country for at least 183 days a year and have your centre of vital interests there. An important advantage of these programmes is the ability to move freely within Schengen countries. Holders of a residence permit can visit most European countries without a visa, open bank accounts, receive medical care, and educate their children in local schools. The procedure for extending a residence permit is usually straightforward: you just need to confirm that you still own the property, have no tax debts and are still complying with the programme’s terms. In some countries, such as Portugal and Greece, you can apply for permanent residence or citizenship after five years of permanent residence.

 By 2025, the number of European jurisdictions offering ‘residence permits for property’ had decreased. The current options and important exceptions are listed below.

Active programmes (real estate forming an independent or key part of the basis)

• Greece – Golden Visa: A 5-year residence permit is granted for investing in real estate. The basic investment threshold remains at €250,000, but for ‘premium’ locations such as Athens, Thessaloniki and popular islands, the minimum investment threshold has increased to €800,000. Alternative investment structures are also permitted, including the conversion of commercial real estate into residential real estate in certain cases.
• Cyprus: permanent residence (Reg. 6(2)) upon purchase of new residential property worth €300,000 (+VAT). Commercial property options are also permitted if the price threshold is met.
• Malta: Malta Permanent Residence Programme (MPRP): Purchasing a home is not the only condition, but it is a key element of the package (purchase of real estate from €375,000 or a long-term lease, plus mandatory contributions and a donation).

Residence permit programmes for real estate in Europe (2025)

Legal requirements for programme participants (KYC/AML and source of funds checks)

• All applicants undergo KYC/AML checks, including confirmation of the source of funds.
• Investments must come from legal sources and be supported by documentary evidence.
• The property type (residential/commercial and new/secondary) affects programme eligibility.
• Rules and thresholds are subject to change, so please verify their validity before applying.

What are the advantages of a residence permit in a European Union country?

Investors and their families obtain a range of benefits when they obtain a residence permit in a European Union country, including legal protection, freedom of movement, tax opportunities and a high level of social stability. This status paves the way for long-term residence in Europe, facilitates business operations, and strengthens the international reputation of the permit holder. The main advantage of a European residence permit is the right to travel freely within the Schengen area. Holders of a residence permit can travel to most European countries without the need for visas, which is particularly convenient for entrepreneurs, investors and individuals engaged in international activities. Additionally, residency permits allow holders to legally live in the country, run a business, open bank accounts, purchase real estate and access the full infrastructure of the European Union’s internal market.

Holders of a residence permit are entitled to access the education and healthcare systems of their chosen country. The investor’s children can study in state schools and universities on the same terms as citizens, and medical insurance entitles them to high-quality treatment and care. In some cases, there are agreements in place that allow medical care to be received in other EU countries, which is particularly important for families who travel frequently between different jurisdictions. From a practical point of view, a residence permit is the first step towards obtaining permanent residence and citizenship of the European Union. After several years of legal residence, investors can apply for permanent residence and, subsequently, citizenship. This gives them the right to live, work and start a business in any EU country, as well as enjoy the protection and consular support of European institutions.

Holders of a residence permit have access to an effective system for protecting property rights and investments. EU legislation provides a high level of legal certainty and guarantees contractual obligations, offering legal protection at both the national and supranational levels. This is particularly important for investors purchasing real estate or shares in European companies, as their assets are protected by the institutional and judicial systems of the country in which they are located.

Many countries offer favourable tax regimes for new residents. These include reduced income tax rates, exemption from taxation on foreign income and exemption from inheritance or capital gains tax in certain cases. Furthermore, holding a residence permit simplifies the process of opening bank accounts, obtaining loans, and accessing financial services in European Union countries, thereby facilitating integration into the European economic system. A European residence permit also helps to legitimise income and confirms the origin of capital is transparent. Investors who have obtained residency by purchasing real estate or starting a business demonstrate financial solvency and the legitimacy of their investments, increasing the level of trust placed in them by banks, counterparties and government agencies.

Family benefits also play a significant role. A residence permit enables the investor’s spouse and children to reside with them, enjoy social security and flourish in a safe environment. In many cases, the programme also extends to parents, providing a valuable means of ensuring stability and a secure future for the entire family. Another advantage is the possibility of tax and corporate planning. Having a residence in Europe enables you to optimise your asset structure, take advantage of double taxation agreements, and safeguard your property against political and economic risks.

A European Union residence permit is more than just a residence permit; it is a tool that provides strategic stability, security, and integration into the European economic space. It enhances the investor’s international standing, opens up access to European business and innovation support programmes and provides access to one of the world’s most stable and transparent legal systems.

In European Union countries, a residence permit is no longer granted for “real estate”

• Spain: residence permits for investment in real estate will no longer be granted from 3 April 2025 (the ‘golden visa’ programme will effectively close).
• Portugal: from October 2023, all real estate options will be excluded (residence permits for other investments will remain).
• Hungary: at the end of 2024, direct purchase of residential property (€500,000) was excluded from the new GIP as a qualifying option. From 2025, the ‘real estate route’ will no longer be available.
• Ireland: closed in 2023; the real estate option is unavailable.

Residence permit programmes for the purchase of real estate have been discontinued in a number of European countries due to a combination of political, economic, and social factors, reflecting the European Union’s new policy on foreign investment and capital controls. These measures were primarily a response to pressure from the European Commission, the European Parliament and financial supervisory authorities, who have repeatedly expressed concern that ‘golden visa’ schemes pose risks to the security and stability of the EU financial system. Regulators have pointed out that obtaining a residence permit through the purchase of real estate could allow capital of dubious origin to be legalised, sanctions to be circumvented and taxes to be evaded. Consequently, countries have been compelled to reassess their stance on such investment programmes, intensifying the verification of the origin of funds and enhancing the transparency of transactions.

Another key factor was the impact of foreign investment on domestic housing markets. In Spain and Portugal, for example, residence permits granted through property purchases caused a rapid rise in residential property prices, especially in large cities and coastal regions, making housing unaffordable for local citizens. The social discontent caused by speculative price increases was one of the main reasons for closing these programmes. The governments of these countries officially stated that their decision aimed to protect citizens’ right to affordable housing and prevent the further commercialisation of the housing stock. Cases of abuse also played a significant role. In many cases, investors purchased real estate only on paper, with no intention of living in the country. Properties were often registered to companies or intermediaries, which made it difficult to verify the ultimate owners. After obtaining a residence permit, the property was often resold, turning the programme itself into a tool for fictitious investments. To prevent such situations, the national authorities began tightening control over ownership structures, eventually excluding real estate completely from the list of acceptable forms of investment.

The European Union’s new sanctions policy also significantly impacted the decision to cancel the programme. Following the events of 2022, controls over the sources of funds in Europe became much stricter, particularly for citizens of countries subject to restrictive measures. The purchase of real estate was seen as an easy way to bring capital into legal circulation, causing concern among regulators. Excluding real estate from investment schemes increased financial transparency and minimised the risks associated with circumventing sanctions. Another argument in favour of the reforms was the desire to redirect investment flows to real economic sectors. European countries concluded that buying real estate does not create new jobs or contribute significantly to the development of industry and innovation. Consequently, the focus has shifted towards investments in technology start-ups, scientific research, funds, and infrastructure projects that generate economic returns and contribute to sustainable growth.

Ultimately, the emergence of a pan-European trend towards transparency, social justice and responsible investment was the decisive factor. The abolition of residence permit programmes for the purchase of real estate has become part of the European Union’s overall strategy to reduce wealth inequality and increase social stability. The authorities want to demonstrate that EU residency should be granted for active investments that generate economic and social value, rather than passive investments in real estate. Thus, the termination of residence permit programmes for real estate reflects Europe’s transition to a more balanced and responsible approach to foreign investment. Priority is now given to active investments that can stimulate economic development, strengthen confidence in the financial system, and maintain a balance of interests between foreign investors and the local population, rather than passive capital concentrated in the residential sector.