In this article, we discuss the 5 Cheapest Residency or Citizenship by Investment Programs in Europe. If you want to check out our detailed analysis, go directly 10 Cheapest Residency or Citizenship by Investment Programs in Europe.
5. Italy
Minimum Investment: $272,500
Italy, with its historical architectural significance and diverse culinary options, needs no introduction. Boasting the third-largest economy among European countries, it attracts tourists from around the globe, many of whom are interested in relocating permanently. For such individuals, the good news is that Italy’s Residence by Investment Program stands out as one of the most cost-effective residency or citizenship-by-investment programs in Europe.
This investment can be made in three ways: through donation, business investment, and bond investment. Investors have the flexibility to choose between a substantial amount in low-risk investments or a smaller amount in high-risk assets. The most economical option is an outlay of $272,500 in an innovative start-up. The temporary resident permit becomes available as early as 1-2 months, while permanent residency takes about 5 years, and citizenship can be achieved in 10 years.
While Greece has a shorter time period for citizenship and the same minimum investment requirement, Italy’s slightly lower personal income tax rate of 43% tilts our decision to place it one rank higher.
One of the major advantages of Italy’s citizenship status is the freedom to travel and visit 189 places, including Schengen areas and the US, without the hassle of obtaining a visa first. Additionally, the applicant can bring their spouse, financially dependent children (up to the age of 24), and parents over the age of 65 years. There is no mandatory permanent stay requirement, offering flexibility to the residents.
The government further facilitates new residents by arranging a tax regime where they can pay a lump sum amount once per year for income generated outside Italy, as opposed to regular payments. This arrangement enables residents to enjoy a high quality of life with access to excellent healthcare and education options, all within a low living cost environment.
4. Hungary
Minimum Investment: $272,500
As of November 2023, the Hungarian government has introduced a new plan—the Guest Investor Visa—under their Golden Visa Program. Being one of the most developed European nations, Hungary offers a high quality of life for foreigners seeking permanent residency. The investment options include a minimum value of $272,500 in registered real estate funds, a $545,000 investment directly in Hungarian real estate, or a $1,090,000 contribution to a public interest area.
The application process is swift, taking approximately 2-3 months, and the residency permit is valid for 10 years. Permanent residency can be achieved in 3 years by residing in the country for the required duration. Citizenship through naturalization is also attainable in about 8 years, with the condition of spending a significant amount of time in the country.
The citizenship guarantees visa-free travel to 185 destinations, including the Schengen and the US. This program distinguishes itself from other European Investment Programs as capital investment can be deferred until after the residency approval has been granted. Spouses and minor children are automatically included in the process, making it a family-friendly option. The program requires physical presence, but only for 180 days in a year. Furthermore, it is available to people from all nationalities, making it one of the best and most cost-effective residency or citizenship programs in Europe.
With a strong business market, a growing property market, and facilitated trade, Hungary offers a favorable environment. Corporate tax rates are low at 9%, and personal income tax rates are extremely competitive compared to other European nations, standing at 15%.
3. Portugal
Minimum Investment: $218,000
Portugal, renowned for its stunning landscapes, beautiful beaches, and delectable food, stands out as one of the most sought-after destinations for both tourists and expatriates. Portugal’s Golden Visa Program, initiated in 2012, is among the most coveted residency-by-investment programs in Europe, and notably, one of the most cost-effective.
Since its inception, the program has garnered immense popularity, with over 12,000 people applying. It provides investment opportunities for non-EU individuals through various channels, including bank deposits, business investments, public shares investments, fund investments, and job creations. Among these, investing in the enhancement of artistic production or the recovery and maintenance of cultural heritage is the most inexpensive, with a value of $272,500, or as low as $218,000 in low population density areas.
While the application process takes a bit longer than some other European programs, ranging from 4 to 15 months, permanent residency becomes available in 5 years, and citizenship can be attained after residing for 5-6 years.
The Portuguese passport, obtained through this program, enables visa-free travel for its holder to 187 places, including the Schengen areas. Notably, the program boasts the best family inclusion policy, encompassing spouses, children of any age, and parents. The application process can be initiated online from home, and the physical presence requirement during the initial years is minimal, with only 7 days required in the first year and 14 days each in the following two years.
These programs not only allow individuals to live, work, and study according to their needs but also offer high-quality education for applicants and their children. Additionally, the high standard of living in Portugal ensures access to international-level healthcare. Real estate investments in Portugal are known to be very profitable, and noteworthy, there are no taxes unless one stays in the country for 183 days.
2. Malta
Minimum Investment: $163,500
Situated in the middle of the Mediterranean Sea, Malta stands out as one of the most gorgeous places one could wish to stay. Despite its high standard of living, the cost of living is low, allowing expats to enjoy available facilities with ease. The Malta Permanent Residency Program (MRRP) is by far the quickest route to citizenship offered among all European countries. Moreover, it is undeniably one of the most cost-effective residency or citizenship-by-investment programs in Europe.
This program makes investors eligible for permanent residency the moment they land, with the only time spent being on the application process, which takes about 6-8 months. The plan consists of various options, all of which must be met, including donation and property investment either by purchase or lease. While there are varying estimates of the total minimum costs with mixed capital requirements, one figure amounts to $163,500, including the lease.
Obtaining citizenship status through this program would grant visa-free travel to 179 places, including the Schengen areas (for 90 days out of 180) and the US. The residency requirement does not necessitate physical presence in the country and bestows the right to live in Malta indefinitely. However, for citizenship, the applicant would need to reside permanently in the country for five years.
Family members are inclusively covered in the plan, with provisions even for financially dependent adult children and parents. In fact, the permanent residency extends to the 4th generation. Furthermore, foreigners face no hindrance in purchasing property in either Malta or Gozo.
1. Latvia
Minimum Investment: $65,400
Latvia, a country brimming with natural wonders, has magnetized numerous individuals to its shores. Introducing expats since 2010, Latvia’s Residence by Investment Program stands as one of the oldest European programs, providing a pathway for establishing residency. Moreover, it is unequivocally the most cost-effective residency or citizenship-by-investment program in Europe.
In 2014, there was a surge in applicants, with Latvia granting about 2,500 requests. However, a slight increase in the minimum investment afterward has somewhat tempered this trend. The investment can be made in various ways, including property investment, business investment, bank deposit, and bond investment. The most economical option involves investing $54,500 in the equity capital of a Latvian company and making a $10,900 one-time payment to the state budget.
The application process is swift, taking about 1-3 months, and physical presence during this time is not mandatory. Permanent residency can be attained in approximately 5 years, and citizenship is also an option, but only after 10 years of physical residency.
Citizenship through this program comes with the benefit of visa-free travel to 181 places, including Schengen and the US. The added advantage of family inclusion extends to minor children, and there is the unique provision of inviting relatives up to the second degree for visa purposes. Additionally, the personal income tax rate is lower than in many other European countries, standing at 31%. Consequently, this program stands out as the most cost-effective route to European residency or citizenship.
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