As global uncertainties rise due to geopolitical headwinds and market volatility, high-net-worth individuals (HNIs) increasingly seek safe havens to protect their lifestyles and capital. This has led to a rising demand for alternative residency and citizenship programs.
When meeting these objectives, investors' core concern is finding tax-friendly jurisdictions that protect business interests while also providing their families with a secure and luxurious lifestyle via the best real estate investment options.
Additionally, long-term stability in the tax regime is equally important since a change in government in some geographies can lead to sudden and unforeseen policy changes. Two destinations ticking all these boxes are Cyprus and Greece.
Secure Investment Destinations
Cyprus boasts one of Europe's widest double-tax treaty networks, a low corporate tax rate, and various personal income tax incentives. There is no capital gains tax on the sale of properties purchased before 2013, no inheritance tax, and virtually no withholding taxes.
Cyprus’ Residence by Investment Program offers permanent residency within six months for a minimal investment of €300,000 (approximately INR26.7 million) + VAT in real estate, making it popular among overseas investors, including people from Asia.
Investors can also choose to invest in commercial real estate, provided the total investment meets the minimum monetary threshold of around INR 2.5 Crore. Best of all, its Permanent Residence by Investment Program offers application approvals within six months if the main criterion on specific investments is met along with some other requirements.
Additional requirements include being of legal age, without criminal antecedents, possessing a legitimate income source, and ample financial resources to ensure mandatory investments while also ascertaining their family members possess a clean track record.
Cyprus Residence by Investment Program holders enjoy visa-free travel across the European Union and access to the country’s excellent Mediterranean climate, beautiful beaches, and vibrant culture. The luxury villa market in Cyprus is gaining global popularity, and short-term rentals can generate significant returns on investment, especially during the peak tourism season.
The Golden Visa Program
The other jewel in the European investment crown is Greece. The Greece Golden Visa Program requires a minimum investment of €250,000 in real estate for a renewable five-year residence permit. However, as of August 2023, the minimum property value required for the Golden Visa has increased to €500,000 in Athens, Thessaloniki, Mykonos, and Santorini.
Crete, the largest island in Greece, remains a relatively affordable option at €250,000 (approximately INR2.15 million). Apart from its lovely 365-day climate, beach-facing villas in Crete’s western part provide the best views of the mountains. Apartments start at €250,000, and luxury villas with four to five bedrooms, fully furnished and fitted on a plot of 20,000 square feet, start at €1.25 million (with zero VAT).
The Greece Golden Visa Program has been popular with foreign nationals since its introduction in 2014. In the first half of 2023, the program added almost €1 billion to the Greek economy, with the total value of real estate sold reaching €975 million. This is nearly three times the number recorded in the same period last year.
Expats and wealthy individuals relocating to Greece under the Golden Visa Program can also enjoy several tax incentives. Golden Visa investors transferring their tax domiciles to Greece may pay a lump sum of €100,000 as tax for 15 years, irrespective of their foreign-sourced income. Golden Visa holders may apply for Greek citizenship after seven years of lawful residence and meeting other legal requirements.
Both Cyprus and Greece offer attractive investment opportunities for HNIs seeking second homes and investment opportunities in tax-friendly jurisdictions with secure lifestyles and luxurious real estate options.
