Luxury Real Estate and Golden Visas: A Guide for Americans

Introduction

As we celebrate Luxury Month at Inman, we’re exploring the evolving luxury market, emerging trends, and insights from top producers and influencers in the ultra-luxury space. This month culminates with the announcement of the expanded Golden I Awards live onstage at Luxury Connect (July 29-30) in Las Vegas.

Golden Visas: An Overview

Summer is the perfect time to dream 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 it’s essential for luxury agents to familiarize themselves with recent changes to Golden Visas, which allow individuals to gain residency or citizenship in foreign countries in exchange for an investment in real estate or other forms of investment.

Changes to Golden Visas

Several countries have undergone changes to their Golden Visa programs in recent years. These changes may affect the feasibility of gaining residency or citizenship through real estate investment. Let’s take a closer look at some of the countries that have made significant changes.

Spain

Spain has ended its Golden Visa program to help ease affordability concerns in the country’s real estate market. The program, launched in 2013, allowed individuals outside the EU to obtain residency by investing more than €500,000 (approximately $545,272) in real estate or certain types of businesses.

Portugal

Portugal has also scaled back its Golden Visa program. The program was initially popular, but due to criticism that it was inflating rents and home prices, the government removed the option to gain residency through investment in real estate. The Golden Visa program still exists for investors who put €500,000 (approximately $545,272) into job creation, scientific research, or the arts and culture.

Greece

Greece has adjusted its Golden Visa program, raising the bar for residency through investment in real estate. Previously, foreign investors could put just €250,000 (approximately $272,636) into real estate throughout the country to gain residency. With the changes, however, investors must put at least €500,000 (approximately $545,272) into real estate in select areas, including parts of Athens, Vari, Voula, Vouliagmeni, Thessaloniki, Mykonos, and Santorini.

Turkey

Turkey has also made changes to its Golden Visa program. 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. Amidst 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 has undergone changes in recent years. 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 (approximately $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 (approximately $211,000). With the platinum tier, investors must pay at least $1 million and purchase property worth at least 2 million ringgit (approximately $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.

Hungary

Hungary has relaunched its Golden Visa program, which will go into effect in January 2025. Individuals who purchase real estate valued at €500,000 (approximately $545,272) or more in specific regions will be eligible for a five-year, renewable visa.

St. Kitts and Nevis

St. Kitts and Nevis has doubled its threshold for real estate investment in recent years. Individuals 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 several other countries where Americans can invest in real estate to obtain residency.

Vanuatu

Vanuatu is a nation in the South Pacific that offers 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 (approximately $167), they are eligible for citizenship.

United Arab Emirates

The United Arab Emirates offers residency opportunities for real estate investors, among other groups. Individuals who purchase one or more properties valued at 2 million dirhams (approximately $544,518) or more in "Freehold Zones" (areas where foreigners can buy real estate) are eligible for a five-year, renewable visa.

Bahamas

The Bahamas offers permanent residency to individuals who purchase real estate valued at $750,000 or more. This top tax haven for high-net-worth individuals attracts investors from the U.S., Canada, South America, Europe, the U.K., and more.

Conclusion

As we wrap up Luxury Month at Inman, it’s clear that Golden Visas remain a popular option for luxury clients looking to gain residency or citizenship in foreign countries. While some countries have scaled back their programs, others offer attractive alternatives. Whether you’re a luxury agent or a high-net-worth individual, it’s essential to stay informed about these programs and their requirements.

FAQs

Q: What is a Golden Visa program?

A: A Golden Visa program is a government-backed program that allows individuals to gain residency or citizenship in a foreign country in exchange for an investment in real estate or other forms of investment.

Q: Which countries offer Golden Visa programs?

A: Several countries offer Golden Visa programs, including Spain, Portugal, Greece, Turkey, Malaysia, Hungary, St. Kitts and Nevis, Vanuatu, and the United Arab Emirates.

Q: What are the benefits of a Golden Visa program?

A: Golden Visa programs offer residency or citizenship in a foreign country, allowing individuals to live and work abroad, access new markets, and benefit from tax advantages.

Q: How do I apply for a Golden Visa program?

A: The application process for a Golden Visa program varies by country. It typically involves submitting an application, providing required documentation, and making the required investment in real estate or other forms of investment. It’s essential to research the specific requirements and eligibility criteria for each program.

Q: What are the risks associated with a Golden Visa program?

A: Like any investment, Golden Visa programs come with risks. It’s essential to research the program thoroughly, understand the requirements and eligibility criteria, and consult with a financial advisor or attorney to ensure that the investment aligns with your financial goals and objectives.

Author: www.inman.com

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