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.
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.
72 m² — 327 m²
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