Could citizenship by investment programs become the easiest way for Brits to secure their retirement abroad?
At the end of April we announced the launch of our citizenship by investment service. For anyone looking for more information regarding this, our website is now updated with further information regarding the options we are offering and detailed downloadable guides for each location. This can be found here: https://hoxtoncapital.com/citizenship-by-investment-with-hoxton-capital/
Why is this interesting?
Many Brits plan to retire in Europe, with some of the most popular destinations being Spain, Greece, Italy and Portugal. We are currently in a state where many people are now uncertain as to the ease of this process, given the UK’s exit from the European Union. Whilst Brexit in no way makes retiring in Europe impossible, it potentially adds complexity to the process and could lead to Brits finding themselves subjected to rules changing and inflexibilities such as time in country requirements.
Securing your retirement in Europe is just one of a range of benefits that acquiring a European passport offers. As a European passport holder, you would have the same freedom of movement to live and work anywhere in Europe as before. It also provides more tax planning opportunities.
How much does this cost?
Almost every country is currently offering at least one program, with some offering as many as 8 different formats to their residency or citizenship by investment options. These range in price and structure, and much like pension planning, speaking with an advisor who understands all the options and your plans and goals, is essential. Here are some of the most popular options:
Portugal:
Permanent residency can be acquired via a property purchase of as little as €280,000. The amount invested into a property purchase changes depending on the location of the property and the population density of the area the property is in. For a building less than 30 years old in Lisbon, the value of the property would need to be €500,000 to qualify for the program.
Citizenship can be claimed after 5 years given that you have met the minimum amount of time you need to spend in the country over that 5 year period, 1-2 weeks per year. Of course, once you have a Portuguese passport you can go and live anywhere in Europe.
Spain:
Spain has a similar program to Portugal in that a property purchase can acquire permanent residency status leading to citizenship. However, Spain is set at €500,000 and it takes 10 years to gain citizenship. There is however no minimum amount of time you need to spend there.
Greece:
Greece is the cheapest option at €250,000 worth of property or land. This means that unlike the other programs you could buy multiple properties that have a culminative value of €250,000 and spread your risk. Having a spread of units that are on Airbnb could make this program profitable when tourism picks up again. Residency can lead to citizenship after 7 years.
On the higher end of the spectrum is Malta and Cyprus that both offer the ability to obtain a passport much quicker than the other. This of course comes at a price with Cyprus costing €2 million invested but with citizenship obtained in as little as 6 months, and Malta marginally cheaper but taking at least 12 months.
Given the large amount of options available, if this is something you may be interested in we would suggest having a conversation with one of our Citizenship consultants. The team is headed up by Paulo Pereira who has joined us bringing over 10 year’s experience with him.
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