Cost of living in the EU, the UK, and the USA

Real estate. Foreigners buy European properties to participate in residence by investment programs.

Greece has the lowest investment threshold of €250,000. In Portugal, you can buy property for restoration for at least €280,000 or a new one for at least €400,000. The minimum real estate price in Spain must be €500,000.

Buying or renting housing is a prerequisite for obtaining permanent residence or citizenship for exceptional services in Malta. Permanent residence requires purchasing a property for at least €300,000. Housing must cost at least €700,000 for its owner to qualify for citizenship.

It is possible to sell Maltese real estate in five years. Renting a property for five years is cheaper, but the money spent on it cannot be returned.

European real estate costs depend on the country, location, property condition, and other features. Prices are changing rapidly: for example, the cost per square metre in the EU was 9,9% higher in the second quarter of 2022 than in the same quarter of 2021.

Utility bills depend on the country, too. Maintaining an apartment in Greece will require the most significant expenses: you will have to pay €100 to €360 per month for an apartment of 85 m². In Portugal, utility bills for the same housing range between €80 and €170 per month. Maltese apartments cost their owners €70 to €150 a month.

Homeowners have to pay annual property taxes. Rates range between 0.3 and 2% of the property value, depending on the country. Malta is the only European country with an investment program but without an annual property tax.

Malta, Kalkara

€300,000 — €1,900,000

Apartments in a large-scale residential project on the first coastline

71 m² — 310 m²

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Malta, Sliema

€920,000 — €1,300,000

Apartments in a new residential high-rise project near the sea

176 m² — 211 m²

2—3

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Malta, Valletta

€1,510,000 — €3,370,000

Modern apartments not far from sea in Valetta

123 m² — 281 m²

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Taxes are high in European countries. If the investor becomes a tax resident of the state, receives income and owns property on its territory, they must pay taxes.

To become a tax resident, you must spend at least 183 days a year in a European country. Exceptions are Cyprus and Malta. In Cyprus, foreigners apply to become tax residents in just 60 days. In Malta, tax residency can be obtained along with a residence permit by participating in the Global Residence Programme.

The income tax rate is usually calculated on a progressive scale. In some countries, tax residents are entitled to deductions. For example, the tax base in Malta can be reduced by up to €9,905.

The income tax rates in the countries with residency investment programs are the following:

Portugal — 14.5 to 48%;

Greece — 9 to 44%;

Malta — 0 to 35%;

Spain — 19 to 45%;

Cyprus — 0 to 35%.

You can use preferential tax regimes or deductions to reduce tax payments.

In Greece, you can pay the tax on global income as a fixed payment of €100,000 per year. In Malta, shareholders are refunded up to 100% of the corporate tax paid by a Maltese company.

Сountries with the highest and the lowest cost of living in Europe. According to Eurostat, prices in the EU countries were, on average, 12—13% higher at the beginning of 2022 than in 2015. In October 2022, the average price increase compared to 2015 was 23,3%.

The consumer price index shows the prices for goods in the EU countries, Switzerland, Iceland, and Norway. The lowest food prices are in Romania; Bulgaria has the cheapest clothes, shoes, furniture, housing, and transport. The most expensive goods and services are in Germany, Luxembourg, Switzerland, and Norway.

Among countries with residence permit investment programs, Portugal has the lowest average prices for food:

• 1 litre of milk — €0.70;

• 12 eggs — €2;

• 1 kg of chicken fillet — €5.70;

• 1 kg of rice — €0.92;

• 1 kg of apples — €1.70;

• 1 kg of tomatoes — €1.70;

• 1 kg of potatoes — €1;

• 1 kg of onions — €1.15;

• 1 bottle of wine — €4.

Real estate is expensive in the UK: the price per square metre averages between £2,000 to £12,000, depending on the property location. However, housing in London costs 1.5—2.5 times more.

Homeowners pay annual municipal property taxes. The rate depends on the property area and value. The tax is usually paid by people who live in an apartment or house, even if it is rented out. The tax amount usually ranges between £700 and £5,500 per year.

On average, the utility bills for an 85 m² apartment are £100 to £330 per month.

Taxes are relatively high in the UK, too. The income tax is paid on a progressive scale. If a tax resident earns £50,271 to £150,000 per year, they pay 40%. If the income exceeds £150,000, the rate is 45%.

The capital gains tax is 10 to 28%.

To become a UK tax resident, you must spend at least 183 days a year in the country. You will also become a tax resident if you own property only in the UK and spend at least 91 days there in total and at least 30 days during the tax year.

The cost of living in the UK. A family of four needs about £2,400 a month to live in the UK without rent. The average prices for groceries are the following:

• 1 litre of milk — £1;

• 12 eggs — £2;

• 1 kg of chicken fillet — £5.70;

• 1 kg of rice — £1.4;

• 1 kg of apples — £2;

• 1 kg of tomatoes — £2;

• 1 kg of potatoes — £1.1;

• 1 kg of onions — £1;

• 1 bottle of wine — £7.

A three-course dinner for two in an ordinary restaurant costs about £60; a monthly fitness club membership is about £30. A litre of gasoline costs an average of £1.6.

Real estate. The price per square metre within a US city ranges between $1,500 and $15,000, depending on the property location. For example, a 60 m² studio in Manhattan can cost about $500,000, the same as a 90 m² apartment in Miami.

The annual property tax rate varies by state and city. It usually is about 1% of the property value. Utilities for an apartment of 85 m² cost $100 to $350 per month.

Taxes are high in the USA. The federal income tax is 10% to 37%, depending on the tax resident’s annual income. Some expenses are deducted from the tax base, for example, alimony and interest on loans. In addition, taxes are levied on inheritance, gifts, and capital gains at the federal level.

The states collect their taxes. Taxes on income, capital gains, transport, and real estate may be levied at the regional level. Cities and municipalities also set their own rates for certain taxes and fees.

All US citizens, Green Card holders and people with tax resident identification numbers are considered US tax residents. Another way to become a tax resident is to spend 183 days in the United States over the past three years.

The average cost of living in the USA. A family of four needs an average of $3,600 per month, excluding rent, to live in the USA. Expenses on food, transportation, entertainment, and other goods and services vary by location. For example, almost everything costs more in New York than in Chicago or Los Angeles.

In New York, a family of four spends at least $5,250 per month, excluding rent. One person requires at least $1,500. Renting a one-bedroom apartment in the centre costs about $4,000, and on the outskirts — about $2,500.

The average prices for groceries in New York are the following:

• 1 litre of milk — $1.3;

• 12 eggs — $4;

• 1 kg of chicken fillet — $18;

• 1 kg of rice — $8;

• 1 kg of apples — $6.3;

• 1 kg of tomatoes — $6.34;

• 1 kg of potatoes — $4;

• 1 kg of onions — $3.7;

• 1 bottle of wine — $18.

Lunch at an inexpensive cafe costs about $20, and a three-course dinner for two in a restaurant costs about $100.

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