Obtaining citizenship through the purchase of real estate in Russia
Russian legislation provides benefits when processing documents for certain categories of foreigners. For example, for those who are officially recognized as native speakers of Russian. However, if you want to obtain a residence permit in the Russian Federation, buying real estate will not help you with this.
Currently, the acquisition of real estate in Russia does not in any way affect the receipt of a residence permit or citizenship. In this case, the cost of real estate does not matter. However, it cannot be said that from a migration point of view, buying real estate would be a useless action, since you can register in it.
Residence permit and citizenship when purchasing real estate in Greece
Greece offers residence under an investment program to citizens of non-EU countries who spend 250 thousand euros or more to purchase real estate in the Greek domestic market and register it as their own. The Greeks also grant full citizenship to foreigners if they stay in the country most of the year for seven years.
At the same time, experts recommend paying particularly close attention to a number of local real estate markets, including Athens, Piraeus, Rhodes and the Peloponnese.
The authorities of this European country are also considering the possibility of granting a Greek residence permit to foreigners upon investing 400 thousand euros in a real estate investment company (Real Estate Investment Company; REIT), engaged in investment activities exclusively in Greek jurisdiction.
You can also obtain Greek citizenship by confirming the presence of Greek roots in your family tree. A similar approach is practiced by many other European countries.
Buying real estate in Russia. Rights of foreigners
Foreigners and stateless persons can purchase real estate in Russia. However, there are several exceptions to this rule. A foreign citizen cannot buy:
- agricultural land plot;
- a plot in the forest fund;
- protected area;
- a site on the territory of a defense facility;
- real estate in border regions of Russia;
- real estate in closed administrative-territorial entities.
In all other cases, foreigners can buy apartments, houses, cottages, commercial premises, as well as land plots and dachas. The area of land, as well as the amount of real estate available for purchase by foreigners, is not limited by law.
What does having real estate in Russia give to a foreigner?
When applying for a residence permit in the Russian Federation, the purchase of real estate does not provide benefits, as well as when resolving other issues of migration law. However, this does not mean that owning real estate does not increase your status. After all, you can register in the purchased property, and this is a prerequisite for obtaining a temporary residence permit.
In addition, if you have been living in Russia for more than 3 years and want a residence permit, you need to prove that you have a place to live and can provide for yourself financially. In this case, having your own real estate simplifies the procedure for obtaining a residence permit in the Russian Federation. After all, if you have an apartment or a house, you will definitely not be denied documents on the grounds that you have nowhere to live.
Registration of a residence permit for the purchase of real estate in European countries
Obtaining a residence permit when purchasing real estate in 2021 in all the states presented below provides an advantage in visa-free travel within the European Union.
Spain
Spanish legislation regulated the amount of 500 thousand euros that an investor must invest when purchasing commercial real estate to obtain a residence permit. Both a one-time transaction and several transactions are considered. The main thing is that the investment should be at least this amount.
As well as acquiring a residence permit and resident status of the country is possible by investing 1,000,000 euros in the authorized capital of a local organization or purchasing securities in the amount of 2,000,000 euros. The Kingdom of Spain actively supports entrepreneurship.
Foreigners buying property in Spain worth over 500,000 euros are entitled to a residence permit
Republic of Cyprus
When purchasing real estate in Cyprus, worth more than 300,000 euros, you can count on obtaining a residence permit. After 5 years of residence in Cyprus, it is possible to obtain a national passport. Previously, it was possible to immediately obtain Cypriot citizenship with an investment of 2 million euros; in 2021, this program was canceled.
Bulgaria
To obtain a residence permit, or as it is called differently in Bulgaria, long-term stay, you need to buy residential or commercial real estate in the amount of 300,000 euros.
It is also possible to make a contribution of at least 125,000 euros to the authorized capital of a Bulgarian organization that provides several jobs in disadvantaged areas of Bulgaria. After 5 renewals of residence permit status, there is a possibility of obtaining a long-term residence permit, but for no more than 5 years.
Greece
This state provides the option of obtaining a residence permit when paying for real estate worth more than 250,000 euros. This amount will be enough to become a resident of Greece for 5 years. The possibility of obtaining this status also extends to the family of the real estate investor.
Greek permanent resident status can be acquired 5 years after the issuance of a temporary residence permit (RP)
Malta
Having residential property worth €250,000 in Malta is also sufficient to obtain a residence permit. If the property does not have any housing, then the price of a rented property starting from 8,750 euros per year can be taken into account.
In Malta, you can get a work permit if you invest at least 100,000 euros in a business and employ at least 30 citizens of the country.
Hungary
Hungary offers quite unique opportunities for obtaining a residence permit. The amount that an investor is required to invest in residential property is not regulated by law. But it is mandatory to have the status of a permanent resident of the country that the property must be well-equipped, and there must be 12 square meters for each person. m.
Also, the applicant for a residence permit must have a regular monthly income of at least 350 euros.
To have the right to extend a residence permit, you must stay in Hungary for at least 6 months.
Portugal
This state is known for the fact that you can obtain a residence permit here using several options:
Real estate in Portugal
- Having purchased real estate (apartment or house) worth at least 500,000 euros (the property must be registered after 10/08/2012).
- When placing a deposit in a Portuguese bank and when purchasing securities in the amount of 1,000,000 euros or more for a period of 5 years.
- When founding a company with a staff of 10 employees.
- When investing in real estate of an old fund in remote regions of countries, amounts from 350,000 euros.
An applicant for citizenship has a mandatory period of stay in the territory: 7 days in the first year and 14 days in the next two years.
After 5 years of residence, you can count on acquiring permanent residence status, and after another 6 years - on Portuguese citizenship and a passport of a European citizen.
Great Britain
Obtaining a residence permit in the UK in 2021 is directly related to investment in its economy.
Number of residence permits issued in exchange for investments in different countries
Considering that the country is one of the most expensive in terms of living standards, the conditions for obtaining a residence permit, and then permanent residence, are not easy here. UK legislation allows a contribution of 1,000,000 pounds sterling to the state economy, of which only 250 thousand can be invested in the purchase of a real estate property; the investor must invest the rest of the amount in government securities.
It is possible to obtain permanent residence under the investment program with an investment of 6.4 million euros after 3 years, with an investment of 12.7 million euros - after 2 years. Of course, not everyone can pull off such an amount.
Principality of Andorra
Andorra welcomes foreign citizens to issue them a residence permit, provided that they invest an amount of 400,000 euros or more in the purchase of real estate or other state assets. But this permit will not give the right to official employment in Andorra.
Entry without a visa with a residence permit is only possible in France, Portugal and Spain, since Andorra is not a member of the Schengen area. But its citizens can receive an annual multivisa for traveling to other European countries.
To extend the residence permit status of an applicant for citizenship, it is necessary to stay in Andorra for at least 3 months a year. Another difficult feature of the civil policy of this state is that an investor can count on obtaining permanent residence and citizenship after 20 years of being in residence permit status.
Czech
The Czech Republic is not one of the countries that provides an automatic residence permit for the purchase of real estate. But it is among those that provide attractive opportunities for becoming a resident in the future, after several years of stay on its territory.
The owner of any property in the Czech Republic has the right, when providing documents for real estate, only to obtain a multiple visa.
This is what a visa to the Czech Republic looks like
Purchasing real estate does not automatically give you the right to obtain a residence permit; it can only serve as an additional basis for a positive decision. To stay legally in the country, an immigrant can come to the foreign affairs police department to obtain a residence permit for work, study or business.
Montenegro
Montenegro offers convenient conditions for obtaining a residence permit. There is no established threshold for the minimum amount of investment in real estate, as well as requirements for the acquisition of commercial or residential property. The choice of Montenegro as a permanent place of residence for those who have not decided where they want to stay is optimal.
The only requirement for the purchased property is that it must be “clean”: no tax debts, litigation, mortgages, etc. To exclude these factors, you can request a so-called list of inappropriateness in the community cadastre, relating to the property being purchased.
Türkiye
It is quite easy to obtain a residence permit in Turkey, where the law does not provide for a minimum investment in a property, and the housing itself is inexpensive.
Tapu - this document confirms the completion of the transaction and only upon receipt of it you are recognized as the full owner of foreign real estate.
You just need to provide the local police department with some documents:
- Agreement for the purchase of real estate.
- Certificate of ownership of the object.
- Turkish bank account statement.
- Foreign passport with a valid visa.
- Receipt for payment of the state fee for a residence permit.
The initial period for which a residence permit is issued is six months, with a subsequent extension for 2 years. The country is not part of the EU and is not a member of the Schengen area.
How the deal is completed
Registration of a transaction with a foreign citizen is carried out in exactly the same way as in the case of citizens of the Russian Federation. The procedure is standard: to transfer rights to real estate, you need to conclude a written agreement between authorized persons, as well as undergo state registration of the transfer of rights in Rosreestr.
If we are talking about acquiring rights to future real estate, the agreement itself is registered separately. This refers to entering into a construction share deal where you buy a property before it is actually built.
However, like Russian citizens, foreigners face all the risks associated with the purchase of real estate. Accordingly, if you buy an apartment or house on the secondary market, you need to check the legal purity of the property. Since there is no guarantee that minors or other persons whose rights may conflict with your interests are not registered there.
You also need to make sure that the person selling the property actually has the rights to do so, that he is the owner or his authorized representative. Thus, foreigners, like Russians, need the help of a competent lawyer.
Property tax
Persons who own real estate or equivalent property pay personal property tax. Garages, parking spaces, kiosks and similar architectural forms are considered to be equivalent to real estate property.
This is a local tax, that is, it is set by each municipality separately, so you need to clarify the rate in local regulations. To calculate the amount of tax, you need to know the cadastral value of your real estate, because it is based on this that the amount is calculated. Owners often resort to the procedure of challenging the cadastral value, because the mechanism for determining it often fails. But it greatly influences the final tax amount.
Taxes are paid separately when selling property. The income of an individual upon the sale of an apartment must be declared if it has been in his possession for less than 5 years.
It is worth remembering that if a foreign person is not a resident, that is, lives in the country for less than 183 days during the year, he pays tax at an increased 30 percent personal income tax rate.
But it is also necessary to check the existence of a double taxation agreement with the possibility of tax offset for a citizen of a particular country.
What concessions are expected in the future when obtaining a residence permit?
Approximately, from July 2021, residence permits will be issued for the purchase of real estate.
After the adoption of the law, a residence permit through the purchase of real estate will become a reality. The law provides for the additional attraction of foreign investors, although a sharp jump in prices and demand for services is not expected. Very important aspects are determining the type of real estate and the minimum cost sufficient to obtain a residence permit for real estate.
Those countries that now provide residence permits and even citizenship for the purchase of housing use specially developed government programs. The investment amount has a fairly wide range, from $250 thousand in Turkey to €300 thousand in Cyprus. Portugal remains the most expensive residence permit for real estate – from 500 thousand €.
For Russia, this amount will most likely be less, but at the same time it should be sufficient to prevent those citizens who were unable to obtain the status through standard legal means from obtaining a residence permit and citizenship.
How are real estate purchase transactions processed now?
The transaction can be completed within the same time frame as Russian citizens. RVP is not given automatically. To do this, the migrant will need to live in the Russian Federation for at least a year, only after that you will be able to apply for a temporary residence permit.
Having property will simplify this procedure, since you will register for a temporary residence permit in your apartment, that is, there will be no need for a host. All participants in the transaction, in order to obtain a residence permit, must go through the necessary procedure, which is not related to the purchase of real estate. First, a period of temporary stay on a migration card, obtaining a temporary residence permit, then you need to obtain a residence permit, and only after that apply for Russian citizenship - all these issues are regulated by the migration departments of the Ministry of Internal Affairs. The deadlines and all regulations are on the website of the Main Directorate of the Ministry of Internal Affairs of Russia.
Latest legislative changes
From July 2021, they plan to issue a residence permit in the Russian Federation for the purchase of real estate. These legislative changes have not yet entered into force, but the government is considering an initiative to provide residence permits in the Russian Federation to foreign citizens who buy real estate here.
For now this is just an initiative. Accordingly, it is impossible to say what the procedure for obtaining a residence permit will be, whether the cost of real estate will affect it, or whether the procedure for transactions with foreigners will change. It is also unclear whether the legislative changes will affect all foreign property owners or only those who have acquired property in recent years. However, these innovations will not affect the procedure for obtaining citizenship.
Real estate buyers will be given residence permits
The agency has developed a bill that is supposed to provide foreigners with a residence permit on economic grounds. This could be purchasing real estate in Russia, investing in companies registered in the Russian Federation, doing business in our country, and other options for contributing to the economy.
The list of “economic grounds” is currently being worked out with the concerned authorities, the press service of the Ministry of Economic Development clarified. In other countries that provide investors with a residence permit, they also take into account investment options such as purchasing securities, bank deposits, paying taxes, and starting a business.
It is expected that the innovation will increase the investment attractiveness of the Russian economy and will contribute to accelerated technological renewal and economic development, the ministry notes. At the same time, the department emphasizes that, unlike most other countries, it is not intended to impose restrictions on foreigners with a residence permit on carrying out labor activities or receiving any income in the country that is not related to investment.
The implementation of investment projects and running your own business require the presence and control of the investor, the Ministry of Economic Development notes, which requires the creation of special conditions for long-term, barrier-free stay and residence of foreigners in Russia. A residence permit will give a foreigner the opportunity to move around Russian territory, stay in the country for a long time without regularly obtaining permits, and will facilitate entry and exit from the Russian Federation.
Now foreign investors can obtain a temporary residence permit in Russia in a simplified manner. However, this opportunity remains unclaimed, the Ministry of Economic Development notes. This is due to the short-term nature of this status (up to 1 year with subsequent extension), the requirement to live and work strictly in the region where the permit was issued, and other restrictions. Also, foreign investors can obtain Russian citizenship through a simplified procedure, without complying with certain periods of residence in the country. But interest in this is not so high, since it is not always perceived positively in the investor’s homeland.
Tentatively, the bill may be submitted to the government or the State Duma at the end of the year, the ministry clarified.
The program for obtaining a residence permit through the purchase of real estate operates in many countries, notes Andrey Solovyov, director of the city real estate department at Knight Frank. In Russia, it will be primarily not Europeans or Americans who will be interested in this innovation, but entrepreneurs from the CIS countries and Russian-speaking people who have certain linguistic roots and connections with the Russian Federation, Solovyov believes. These measures could support the economy-class residential real estate market (if it, in principle, fits the criteria established by law), since a number of foreigners who are currently having difficulties obtaining a residence permit will try to speed up the process in this way. “However, this will have a short-term effect and, in my opinion, will not have a significant impact on the real estate market and the volume of consumption,” says the expert.
