Residence permit for Russians when buying real estate in Europe

In some countries, the issuance of a residence permit to Russians has been suspended. These include, for example, Germany. However, Russian citizens continue to buy real estate in Montenegro, the UAE, and Turkey. You can get a European residence permit by buying a house or participating in investment programs in the national economy: purchasing bonds issued by the relevant states, opening bank accounts, investing in business, making contributions to state funds.

Investors choose residential and commercial properties for purchase for subsequent resale or rental. The minimum investment threshold in relation to real estate is 250 thousand euros.

Terms of participation

For Russians who want to settle in Europe or open their own business there, investing in real estate is an excellent way to obtain a residence permit. After a certain period of time, a foreigner will be able to start applying for permanent residence and citizenship. You can get a residence permit status in different countries within a period of 2 to 8 months.

In Cyprus, the owners of housing or commercial facilities skip the stage of obtaining the status of a residence permit and immediately receive permanent residence. If they are implemented before the deadline, the residence permit may be liquidated.

In some cases, an application for a residence permit may be rejected in the European Union: in the presence of dangerous diseases, inaccuracies in the documents provided, failure to assess reliability and errors made when selecting a real estate object.

Requirements for the applicant

The requirements for residence permit recipients will differ in each EU country, but here are the most common ones:

• Reaching the age of 18;
• Having a bank account with a local bank;
• No criminal record;
• Availability of medical insurance;
• Availability of liquid financial assets for a specific amount.

In Croatia, an investor must obtain a purchase permit from the Minister of Justice, and in Austria, in order to buy real estate, you need to have at least a residence permit and permanently reside in the country. There is a similar law in Switzerland.

Required documents

They are mainly submitted in the state language of the country in which the residence permit status is requested.

Their main list is:

• application form;
• passport (copies of all pages are required);
• 35×45 mm photos taken no earlier than 3 months before applying for the status;
• confirmation of payment of state duty;
• medical insurance;
• a bank statement (or other evidence confirming financial well-being);
• a document confirming the absence of a criminal record;
• confirmation of ownership of a specific property.

Sometimes they may require the attachment of a purchase and sale agreement, an assessment of the purchased object.

Greece

In this country, the investments made give the right to a “golden visa”. To maintain the status after receiving it, it is not necessary to be in Greece – it is enough to own real estate and apply for an extension of a residence permit every 5 years. The minimum entry threshold is 250 thousand euros, and in some highly developed regions, for example, Athens, Santorini – 800 thousand euros. Basically, it is 400 thousand euros.

Until September 2024, the minimum threshold was 500 thousand euros. Real estate prices in Athens have reached the level of 2007 and remain attractive to investors. Some apartments in the country can be purchased for 100 thousand euros, but in this case they will have to be purchased several times to reach the minimum threshold. There are houses worth more than 1 million euros.

You can get a Greek residence permit after 1 year of staying in the state on a digital nomad visa. Applications received from investors are rejected in less than 1% of cases, the main thing is to be the owner of real estate that meets the requirements of the competent authority. Unlike other States of the European area, it is not required to submit a certificate of non-conviction.

In 2024, you can get a residence permit in Greece, having a second citizenship. If available, you can get the status remotely. If it is impossible to be present in person, you can issue a power of attorney to a representative who can arrange the purchase of an object, submit an application for the acquisition of the status of an interested person and send a card prepared for him.

Italy

In Italy, you cannot get a residence permit for real estate investments. There is a state investment program, but it allows you to obtain a residence permit for the purchase of government bonds, investments in the authorized capital of companies, socially significant programs or startups.

Migrants who do not have financial problems are welcome in Italy. They can gain status as digital nomads. To do this, you need to buy or rent a property for any amount, as well as provide evidence of a permanent income from € 32,400 per year and savings of at least € 30,000.

The digital nomad visa allows you to apply for permanent residence after 5 years, and after 10 years – to obtain citizenship on a general basis through naturalization.

Hungary

In Hungary, when buying real estate, applicants can immediately apply for a ten-year residence permit. From 2024, it can be obtained with a minimum investment of 500 thousand euros. The property cannot be sold for 5 years.

The most expensive housing is located in Budapest, primary housing costs about 162 thousand euros, and secondary housing costs 125 thousand euros. Basically, investors prefer to invest in secondary real estate. There is an increased demand for apartments in condominiums (the so-called MKD).

The residence permit is maintained even with non-permanent residence in Hungary. It is possible to extend the status 1 time after the expiration of the 10-year period. In Hungary, digital nomads who work remotely and have an income of at least 2 thousand euros per month can also apply for a residence permit. A residence permit allows you to travel to the countries of the Schengen area and allows you to legalize in other countries of the European area.

Cyprus

Cyprus remains one of the most popular investment destinations for Russians. Here, the minimum investment is only 300,000 €. The investor invests in 1-2 objects, taking into account their total cost. Housing is purchased only on the primary market, and commercial properties are available on any market. The buyer’s annual income must exceed 50,000 euros.

An investor should not be employed in Cyprus. A foreigner who receives at least 3.5 thousand euros per month and works outside the country can expect to receive a digital nomad visa.

Here, no tax is charged on real estate, if desired, it is leased and sold after the acquisition of permanent residence and after 5 years. Apartments can be purchased for 80-90 thousand euros, and luxury villas are sold at a cost of several million euros.

Adults receive a residence permit indefinitely with the need to change their identification card every 10 years, children – until the age of 18. 5 years after the assignment of permanent residence, the investor can submit a package of documents for the purchase of a country’s passport.

Portugal

Registration of the status is provided for the purchase of property for at least 350,000 €. But this applies only to objects on the secondary market that were built at least 30 years before the purchase. For new facilities, the minimum investment amount is 500,000 € in the Azores, the Mayder or sparsely populated areas. In the first year after obtaining the status, you need to stay in Portugal for at least 7 days, and in the following years – at least 14.

Apartments in Portugal are quite expensive. Their cost starts from 180,000 €, and luxury villas and hotels cost several million euros. 60 months after obtaining the status of a residence permit, you can apply for citizenship of the country.

Comparison table

Let’s look at which of the countries discussed above have the highest and lowest minimum purchase price for real estate to obtain a residence permit.

When planning investments, you need to take into account the percentage of tax that will have to be paid to the state when buying: in Greece, the tax is 3%, in Hungary 2-4, and in Cyprus – 3-8%.

Dynamics of real estate prices in Europe

In the period 2000-2008, real estate prices in Europe increased by 3-7% annually. Demand support was stimulated by existing mortgage programs. In some states, banks issued loans that fully covered the cost of the facility and also on top of the costs incurred by the future owner. In 2008, the financial crisis broke out, which came to Europe from the United States.

In countries where the market was overheated, there was a sharp collapse in prices, while in other regions there was a moderate decline. All real estate, from houses to hotels, was falling in value. There was a downward trend until 2014. Starting in 2014, the economies of most countries began to recover. Banks have limited the number of people who want to get a mortgage, developers have reduced the pace of construction. The average price dynamics was 5% per year. In Hungary, they grew at a faster rate.

After the coronavirus pandemic, demand went up sharply, while supply changed insignificantly, which caused prices to skyrocket. By 2022, the value of real estate in the main countries has increased by up to 50% compared to the peak values of 2007. This trend has not been recorded in Cyprus, Greece and Italy. Prices significantly outpaced the growth in rental rates, which is why the profitability of commercial and residential properties in Europe decreased. This led to the fact that at the end of 2022, the volume of investments in the industry from professional players began to decrease.

Greece is now experiencing a flourishing economy. Housing prices are rising – on average +10% in the country, and up to +20% in some regions. But in 2024, they only reached the level of 2008, which suggests that there is still a lot of growth potential. Cyprus is experiencing an upward trend due to rising prices for middle-class housing. There are a large number of foreign investors who provide more than a quarter of all sales.