Why This Country Isn’t a Great Place for Real Estate Investing and Where To Go Instead

Lisbon city in Portugal

American investors have figured out that buying property overseas can be both affordable and lucrative. Some countries offer “golden visas” to foreign investors who make large real estate investments in their country, allowing them permanent residency. However, Spain has followed several other countries in scrapping this visa to lower the cost of housing to its own residents.

In lieu of Spain, which other countries might be good investments instead? Real estate experts offer some suggestions.

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Portugal

Perhaps one of the most popular countries drawing American expats and investors is Portugal, according to Colten Claus, an associate broker at 8z Real Estate.

“Portugal still offers a golden visa program, which has been popular among investors seeking not only real estate opportunities but also residency perks,” he explained.

The program requires a real estate investment of at least €500,000 (roughly $538,675) in urban areas, he said, which can be reduced to €350,000 (about $377,072) for properties in low-density areas or those in need of renovation.

“Investors can benefit from a stable real estate market with potential for capital appreciation… like Lisbon, Porto and the Algarve region,” he said.

The process involves selecting a property, completing legal checks and making the investment to qualify for the visa.

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Greece

Greece also offers a golden visa program for a minimum real estate investment of €250,000 (about $269,337), which Claus said is “[T]he lowest threshold in Europe, making it highly attractive for investors.”

He added, “The country’s real estate market has shown resilience and offers good rental yields, particularly in tourist-favored locations.”

Investing in Greece involves choosing a property that meets the golden visa criteria, with options ranging from urban apartments to holiday homes on the islands.

Turkey

Another country to consider is Turkey, Claus said. “Turkey’s real estate market is dynamic and offers a relatively low entry point for foreign investors. The country provides a citizenship-by-investment program where a minimum property investment of $400,000 grants the investor Turkish citizenship.”

Claus said that Turkey is appealing because of its diverse property types and strong rental demand.

“Investors need to purchase property and hold it for at least three years to qualify for citizenship. The process is streamlined for foreigners, and the real estate sector is well-equipped to assist international buyers,” he said.

Malta

Malta also offers a residency-by-investment program, Claus said, which requires a mix of property purchase and government contributions.

“The program is attractive due to Malta’s European Union (EU) membership and robust legal and financial frameworks.”

The investment in real estate needs to meet a minimum value of €300,000 (about $323,205) in the south of Malta or on the sister island of Gozo, or €350,000 (about $377,072) in other areas, Claus shared.

“This, coupled with a nonrefundable government contribution and a five-year residence requirement, paves the way for long-term residency.”

Mauritius

Known for its pristine beaches and vibrant culture, Mauritius also offers attractive investment opportunities for foreigners, according to Bubba Peek, a real estate expert and the founder of Bubba Land, a company specializing in land acquisition.

“The country’s Real Estate Scheme (RES) allows noncitizens to invest in luxury properties and obtain residency permits,” Peek said.

Additionally, he said that “Mauritius offers favorable tax incentives for investors, making it an enticing destination for those looking to diversify their real estate portfolios in a tropical paradise.”

Vanuatu

This South Pacific island nation offers a unique citizenship-by-investment program known as the Vanuatu Development Support Programme (DSP), Peek said.

“By making a qualifying investment, such as purchasing real estate, investors can obtain citizenship in Vanuatu, which provides visa-free travel to over 130 countries.”

With its pristine natural environment and stable political climate, Peek said Vanuatu presents an attractive option for investors seeking a second citizenship in a serene tropical setting.

Panama

As a key financial hub in Central America, Panama offers various residency and citizenship programs for investors as well, Peek said.

“The Friendly Nations Visa program, in particular, allows citizens of select countries to obtain residency by investing in real estate or other qualified assets. Panama’s strategic location, booming economy and favorable tax laws make it an appealing destination for investors looking to capitalize on the country’s growth prospects.”

Be Aware of Regulatory Changes and Uncertainty

No matter which country you consider, be aware of regulatory changes, Claus said. Recent and potential future tax reforms in the U.S. may affect property ownership costs and investment returns, he warned.

“Changes to capital gains tax, property tax deductions and possible modifications to 1031 exchange rules could decrease the attractiveness for both domestic and international investors.”

Consider Immigration Policies

While these countries’ investment opportunities and residency programs may sound good, Claus warned, “Tightened immigration policies can limit the pool of international buyers who typically invest in real estate as a pathway to residency, similar to the influence of golden visa programs in other countries.”

Any such investment overseas requires careful diligence, research and a backup plan in case things don’t go how you hope.

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