The Changing Landscape of Golden Visas in Europe: Spain’s Shift and Emerging Opportunities in Italy and Greece
In a move that has rippled through the market of international real estate investment, Spain’s decision to terminate its Golden Visa program has set eyes turning towards alternative options within the European Union. Established in 2013 by the government led by Mariano Rajoy, Spain’s Golden Visa scheme attracted an average of €580 million annually through real estate investments, appealing broadly to non-EU investors. With this program’s conclusion, announced by President Pedro Sanchez, Italy and Greece are now emerging as the new focal points for real estate investors.
Why Has Spain Chosen to End the Golden Visa Program?
Spain’s Golden Visa program facilitated a method for non-European investors to gain Spanish residency—though not nationality—along with a work permit in exchange for significant investments in the country’s real estate. The appeal was substantial, drawing in considerable foreign capital, predominantly toward the housing sector, accounting for 94% of the total investment flow through this channel. However, the exact reasons behind the discontinuation of this lucrative program remain part of a broader governmental strategy, reflecting perhaps a shift in priorities or an aim to recalibrate foreign investment influences.
What Are the Alternatives to Spain’s Real Estate Golden Visa?
With Spain’s exit from the list of European countries offering Golden Visas particularly through real estate investment, the spotlight shines on Italy and Greece, both of which continue to extend similar privileges to non-EU investors. According to reports in “El Economista”, Italy, for instance, offers a highly competitive tax model for foreigners, including a regime where they can pay €100,000 annually and be exempt from further taxation.
“This measure signifies that Spain will cease to be attractive to real estate investors looking for the golden visa, and there are other EU countries that still have it, such as Italy, Greece, Malta, and Hungary. Furthermore, the first two have a competitive tax model for foreigners,” Siro Barro, head of the tax law department of Escalona & de Fuentes, conveyed to “El Economista”.
What Does This Shift Mean for Investors?
For investors initially targeting Spain for its Golden Visa, the closure prompts a reassessment of strategies, with Italy and Greece serving as viable alternatives. These countries not only offer the perk of residency in exchange for investment but also feature attractive tax benefits that enhance their appeal as destinations for real estate investment. Investors now faced with Spain’s departure from the Golden Visa arena are likely to explore these options, potentially leading to a recalibration of investment flows within the EU real estate market.
How Can Investors Navigate These Changes?
For those looking to pivot their investment strategies in light of Spain’s recent policy change, familiarizing themselves with the details of Italy and Greece’s respective programs is a crucial first step. To ensure a comprehensive understanding of Italy’s tax regime and the specific requirements for obtaining a Golden Visa in Greece, consulting with legal and financial experts in those countries is advisable. For authoritative information on moving to Italy, investors can refer to the Italian Government’s Immigration Portal.
In conclusion, while the end of Spain’s Golden Visa may initially seem like a setback for non-EU investors, it opens up a new realm of possibilities in Italy and Greece. These countries not only promise the warmth of the Mediterranean but also hold lucrative opportunities for those looking to invest in real estate, all while offering the golden ticket to European residency.
This Article In A Nutshell:
Spain’s exit from the Golden Visa market shifts attention to Italy and Greece, now prime spots for non-EU investors. With similar benefits and competitive tax models, both nations attract those seeking European residency through real estate investments. Spain’s departure prompts a strategic reevaluation, potentially redirecting investment flows within the EU market.
— By VisaVerge.com
