Golden Visa and Residency Programs

Golden Visa and Residency Programs Through Real Estate

Overview

Many countries offer visas or residence permits based on investments in real estate. This attracts wealthy investors, stimulates the market, and increases capital inflow.

UAE: Golden Visa

10-year Golden Visa

Minimum investment: AED 2,000,000 in real estate
Can be in one or multiple properties
Mortgage permitted (the full property value is counted, not just equity)
Includes: spouse and children up to 25 years old
Work/business in the UAE is not required

5-year Property Visa (Green Visa)

Minimum investment: AED 750,000
Sponsor not required
Possibility to work freelance

Advantages

Residency without ties to an employer
Access to banking services, driver’s license, Emirates ID
Ability to sponsor family
UAE tax residency (if residing >183 days)

Spain: Golden Visa (until 2025)

Conditions (until cancellation)

Investment from €500,000 in real estate (no mortgage for this amount)
Residence permit for 2 years (extension for 5 years)
Ability to travel within the Schengen area
No residence required

Statistics

2013–2023: about 15,000 golden visas issued
Main recipients: Chinese, Russians, British, Arabs
Average investment: €700,000–1,000,000

Cancellation

The Spanish government announced the program’s cancellation (2024/2025)
Reason: rising real estate prices, limitation of accessibility for locals
Existing holders: will be able to renew

Portugal: Golden Visa (reformed)

Current conditions (2024+)

Real estate excluded from the program (since 2023)
Available: funds investment (€500,000), scientific research (€500,000), cultural heritage (€250,000)
Previously: purchase from €280,000 (renovation) or €500,000

Impact on market

Exclusion of real estate reduced foreign demand by 20–30%
Prices in Lisbon and Algarve stabilized

Greece: Golden Visa

Conditions

Investment from €250,000 (in certain regions — €800,000 from 2024)
€250,000: peripheral areas, islands (excluding popular ones)
€800,000: Athens, Thessaloniki, Mykonos, Santorini
Schengen visa, renewal every 5 years

Other Programs

Country	Minimum	Features
Malta	€300,000 (purchase)	Citizenship after 5 years
Cyprus	€300,000	Permanent residency
Turkey	$400,000	Citizenship after 3 years
Latvia	€250,000	Temporary residence permit
Montenegro	€450,000	Citizenship (limited program)

Comparison of Programs

Criterion	UAE	Spain	Greece
Minimum	AED 750,000 (~€190,000)	€500,000	€250,000–800,000
Term	5–10 years	2+5 years	5 years
Schengen	No	Yes	Yes
Taxes	0%	Yes (residents)	Yes
Citizenship	No (rare exceptions)	After 10 years	After 7 years
Mortgage	Permitted	No (for minimum amount)	No

Program Selection Strategy: Key Questions for Investors

The choice of a residency-by-investment program is a multifactorial decision. Key questions: is access to the Schengen area needed (critical for EU, unimportant for business in UAE)? Is tax residency in the new country planned (UAE = 0% taxes if residing >183 days)? How stable is the program in the long term (Portugal has tightened, Greece raised the threshold in 2024)? Is the family included in the minimum threshold? The Dubai program stands out for its flexibility: mortgages are allowed, properties can be either ready or off-plan, and the threshold of AED 750,000 (~€190,000) is the most accessible among comparable programs.

UAE Tax Residency: Practical Requirements and Limitations

Obtaining a UAE residency visa opens up the possibility of switching tax residency to the UAE—a jurisdiction with zero income tax. However, practical implementation is associated with a number of requirements. First, it is necessary to reside in the UAE for at least 183 days per year (the standard requirement for most countries to recognize tax non-residency). Second, an official break of tax ties with the previous country of residency is required: closing local bank accounts, deregistration, selling or renting out property. A number of states (especially Germany, Austria) have the concept of “extended taxation”—Wegzugssteuer (exit tax), which may tax unrealized capital gains upon changing residency. In the United Kingdom, a similar mechanism is absent, making relocation to the UAE potentially more beneficial for British residents. Consulting with a specialized tax lawyer is a mandatory step before moving with the aim of optimizing taxation.

Practical Assignments

Assignment 1. A family from Russia (4 people) is considering obtaining a residence permit through real estate. Budget: €600,000. Compare options: Dubai, Greece, Spain (if still available). Criteria: cost, quality of life, taxes, access to EU.

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Dubai (AED 2,200,000): 10-year Golden Visa, 0% taxes, high quality of life, Russian-speaking infrastructure, but no access to EU/Schengen. Suitable for business and lifestyle. Greece (€500,000 + €100,000 expenses): Residency + Schengen, low cost of living, pleasant climate. Taxes: flat tax for new residents. But: economic instability, complex bureaucracy. Spain (€500,000 + €60,000 expenses): if still available — best option for EU (Schengen, high quality of life, international schools). Taxes are higher. Recommendation: Dubai (if EU is not needed) or Greece (if EU access is required).

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Assignment 2. How did the cancellation of the golden visa for real estate in Portugal and the increase in the threshold in Greece affect these countries’ markets?

<details> <summary>Solution</summary>

Portugal: Foreign demand declined by 20–30%, but was offset by growth in domestic demand and the digital nomad visa. Prices in Lisbon stabilized. The Algarve market — moderate correction. Greece: Raising the threshold to €800,000 in Athens reduced the volume of applications by ~40%. Investors reoriented to regions with the €250,000 threshold (Crete, Peloponnese)—this stimulates decentralization of the market. Conclusion: tightening programs redirects capital but does not eliminate demand—investors look for alternatives.

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