Business Immigration to the EU: Compare Terms and Benefits in Six Countries

Investment immigration is a legal mechanism by which governments grant temporary or permanent residence to non-EU nationals in exchange for a qualifying capital commitment. It differs from an ordinary visa in three practical ways:

1. Residence is tied to investment maintenance rather than employment.
2. A single application typically covers the entire family.
3. It provides a defined pathway to permanent residence or, in some countries, eventual citizenship.

Within the EU, each country establishes its programme under national law, and its immigration authority supervises it. The EU institutions do not run a unified investor-residence scheme. They set minimum standards and can challenge programmes that raise Due Diligence or money-laundering concerns, but the qualifying criteria, thresholds, and procedures remain national.

Business options are available to investors in five EU countries: Latvia, Portugal, Italy, Hungary, and Cyprus. In Malta, the Permanent Residence Programme requires applicants to meet specific conditions that do not include a business investment; however, Maltese permanent residence can facilitate future endeavours.

Investment and business immigration offers far more than the right to reside in an EU country. Investors and entrepreneurs may gain access to the EU market, benefit from competitive tax regimes, travel more freely, and create a long-term pathway towards permanent residence or citizenship.

1. Doing business in the EU

A company registered anywhere in the EU gets free access to a single market of around 450 million consumers and moves goods and services across the bloc's member states without customs duties or internal border checks.

Companies based in the eurozone share a currency with the rest of the bloc, which removes exchange-rate risk from cross-border trade entirely.

The EU also distinguishes itself with a stable, harmonised legal system and a deep, well-regulated banking network. Therefore, an EU entity tends to carry more weight with international clients, banks, and investors than one registered in a less transparent jurisdiction.

2. Tax optimisation

Hungary has the lowest corporate tax rate in the EU, at 9%. Cyprus has a corporate tax rate of 15%. Latvia does not tax reinvested company profits; it taxes only distributed profits, at 20%.

Malta's corporate tax rate is 35%, but shareholders can claim refunds of most of it, which brings the effective rate down to around 5% on trading profits. There is no withholding tax on dividends, interest, or royalties paid abroad, and qualifying holding companies pay no tax on dividends or capital gains. Since 2025, companies can also bypass the refund process and pay a flat 15% rate.

Italy offers innovative-SME incentives such as stamp duty exemptions, state-backed loan guarantees, and reduced VAT for qualifying startups.

3. Visa-free travel across the Schengen Area

Residents of Latvia, Portugal, Italy, Hungary, and Malta travel throughout the Schengen Area without a visa, staying up to 90 days within any 180-day period.

Cyprus is the exception: it is not part of the Schengen Area yet, so permanent residence there gives unrestricted entry to Cyprus itself, but holders still require a separate Schengen visa for the rest of the region.

4. Residing in the EU

A residence permit allows the holder to live in the country that issued it.

However, for investment immigration, holders are usually not required to relocate and live there permanently: the move remains a right, not an obligation.

5. Prospect of obtaining EU citizenship

Holding a residence permit for several years may qualify the holder for citizenship. Naturalisation usually requires living in the country permanently:

• 5 years — in Malta;
• 8 years — in Cyprus;
• 10 years — in Latvia, Portugal, and Italy.

Applicants are also required to meet specific language and integration criteria.

Hungary's business residence permit is the outlier: it does not lead to permanent residence or citizenship on its own. Investors aiming for naturalisation typically have to switch to the Hungary Golden Visa, which does carry that route.

The Portugal Golden Visa is governed by Law 23/2007 and subsequent amendments^{[1]Source: Aliens Act Law No. 23/2007}. It remains a widely used pathway to EU residence for investors who prefer a passive or business-linked investment over a direct property purchase.

Qualifying business investment routes

Portugal has two investment routes for those wishing to do business in the country.

Opening a new company and creating at least 10 jobs. This route has no minimum investment requirement. However, AIMA requires evidence that the business is genuinely operational: a business plan, proof of commercial activity, and employment contracts are usually treated as core documentation.

Investing at least €500,000 in an existing business. This route also requires maintaining at least 5 permanent jobs for a minimum of 3 years.

The investor injects capital into an existing Portuguese company:

• sociedade por quotas — a closed limited liability company. Its authorised capital depends on the field of activity and ranges from €1 to €5,000, with a minimum of 2 shareholders;
• sociedade anónima — a public limited company with a minimum capital of €50,000 and a minimum of 5 shareholders.

Family immigration

The Golden Visa application may include:

• spouse or partner, including same-sex couples;
• children under 26 who are unmarried, financially dependent on the investor, and either living with the investor or studying at a university;
• parents.

Residence timeframe and validity

The Portugal Golden Visa takes at least 12 months to obtain. Portugal issues the residence permit for 2 years, renewable an unlimited number of times for further 2-year periods.

To maintain residence, an investor is required to spend at least 7 days a year in Portugal.

Latvia has one of the lowest investment thresholds in the EU for residence by investment, with a total minimum outlay of €50,000 under the company route. The Golden Visa operates under the Immigration Law of Latvia, which the Office of Citizenship and Migration Affairs administers^{[2]Source: Section 23, Paragraph 1, Clause 28 of the Immigration Law}.

Qualifying business investment routes

Latvia offers two principal investment routes for a temporary residence permit:

1. Company share capital investment — €50,000+. An investor commits at least this amount to a Latvian company with up to 50 employees and annual turnover under €10 million, and holds it for 5 years.
2. Company share capital investment — €100,000+. An investor commits at least this amount to a company with more than 50 employees and annual turnover exceeding €10 million, and holds it for 10 years.

In both cases, a state fee of €10,000 is mandatory.

The investor holds shares in a Latvian limited liability company — sabiedrība ar ierobežotu atbildību, SIA. The company is not required to be newly incorporated; acquiring shares in an existing Latvian SIA also qualifies. Creating a specific number of jobs is not required.

However, the company has to be genuinely operational, paying taxes in Latvia, and the investor has to demonstrate sufficient income to support themselves in Latvia. Therefore, the Office of Citizenship and Migration Affairs reviews the company's tax-compliance history, active operations, and the investor's source of funds.

Family immigration

The investor can include the following family members in their residence application:

• spouse, if legally married;
• children, if under 18, unmarried, and financially dependent on the main applicant.

Residence timeframe and validity

The Latvia Golden Visa takes at least 3 months to obtain. As a result, the investor receives a 5-year renewable residence permit.

To maintain residence, an investor is not required to move to Latvia. However, an investor is required to visit the country once a year to renew the permit and resubmit biometrics.

Italy's Investor Visa offers a residence permit under Article 1.155 of the Budget Law No. 232/2016^{[3]Source: Budget Law No. 232/2016}, Interministerial Decree dated July 21st, 2017^{[4]Source: Interministerial Decree}, and Article 26 of the Italian Consolidated Law on Immigration^{[5]Source: Italian Consolidated Law on Immigration}.

Qualifying business investment routes

Italy offers two business investment routes for a residence permit:

1. Innovative startup — €250,000+. The investment goes into an innovative Italian startup registered on the official government list, updated weekly.
2. Established company — €500,000+. An investor buys into the share capital of an Italian limited liability company or joint-stock company.

An investor is not required to manage the investee company day-to-day, and the stake may be a minority one. The transaction closes within 3 months of entering Italy, and the residence permit remains valid only while the capital stays in place throughout the permit period.

Family immigration

The residence application may include the following family members:

• legally married spouse;
• children under 18, or over 18 and financially dependent due to total disability;
• parents who are financially dependent on the investor with no other children able to support them, or aged over 65 with no children able to support them for documented health reasons.

Residence timeframe and validity

The Italy Investor Visa takes at least 4 months to obtain: the Nulla Osta is typically issued within 30 days of submission, followed by the consular visa stage and the residence permit application. As a result, the investor receives a 2-year residence permit, renewable for further 3-year periods while the investment is maintained.

To maintain residence, an investor is not required to move to Italy, and no minimum-stay obligation applies.

Hungary lets company founders obtain EU residence for a €7,700 minimum investment. Despite the low financial requirement, this option has a major pitfall as it does not lead to permanent residence or citizenship. 

Qualifying business investment routes

Hungary offers two company types for a business residence permit:

1. Limited liability company — €7,700+, or 3+ million forints. The company must generate a minimum monthly income of €1,500 for the applicant.
2. Joint-stock company— €12,700+, or 5+ million forints. The same €1,500 minimum monthly income threshold applies.

A founder may be an individual or a legal entity, and multiple founders can each obtain a residence permit through the same company. 

Individual entrepreneur status does not qualify: the business is required to be a registered legal entity.

Family immigration

The following family members can get residence permits a year later, at the main applicant's first renewal:

• spouse in a registered marriage;
• children under 18 who are dependent on the applicant;
• parents who are financially dependent on the applicant.

Residence timeframe and validity

The Hungary business residence permit takes at least 6 months to obtain. The initial permit is valid for 1 year and renewable for 2 further years, for a total of 3 years; after that period, an applicant may reapply through the same company.

To maintain residence, an investor is required to spend at least 90 days in Hungary within any 6-month period.

Cyprus grants permanent residence at first approval, with no temporary permit stage. The regime operates under Regulation 6(2) of the Aliens and Immigration Regulations^{[6]Source: Criteria for granting an Immigration Permit described on the official website of the Migration Department}.

Qualifying business investment routes

A foreigner can purchase business shares for at least €300,000 to become a permanent resident. The shares must belong to an operating Cypriot company employing at least 5 people locally. This route also requires the investee company to show physical substance in Cyprus, a local payroll, and ongoing operation.

Another business-related path requires buying commercial real estate for at least €300,000. This category covers new or resale units such as offices, shops, or hotels.

Both routes also require housing on the island, whether purchased or rented. Most investors therefore choose the residential property option, purchasing at a minimum of €300,000 to qualify for permanent residence. An investor who wants to run a business in Cyprus starts one after obtaining that status through the property route; the investment is not required to be tied to that business activity.

Family immigration

The residence application may include the following family members:

• spouse or partner;
• children under 18;
• unmarried children aged 18 to 25 who are financially dependent students;
• children of any age with a physical or mental disability.

The main applicant demonstrates an annual income of at least €50,000 from abroad, plus €15,000 for a spouse or partner and €10,000 for each child.

Residence timeframe and validity

Cyprus permanent residence takes at least 9 months to obtain. The status is life-long, though the physical ID card is replaced every 10 years.

To maintain residence, an investor is required to visit Cyprus once every 2 years, after submitting biometrics in person within the first year of approval.

The Malta Permanent Residence Programme grants a status for life, with no mandatory minimum stay requirement and inclusive family provisions. The MPRP does not require an investment in a Maltese business, but a holder may register and operate a Maltese company at any point after approval, drawing on Malta's position as an EU member state with an English-language, common-law legal system.

The MPRP is administered by Residency Malta Agency and operates Regulations S.L. 217.26 of 2021, Regulations under L.N. 310 of 2024, and L.N. 146 of 2025^{[7]Source: Subsidiary Legislation 217.26 of 2021, as amended by Legal Notices 57 and 310 of 2024 and 146 of 2025}.

Why choose Malta as a base for an EU business

Malta is a full EU member state and a common-law jurisdiction operating in English, which removes the language barrier for US, UK, and Commonwealth founders. 

The European Commission classifies Malta as a Strong Innovator, performing at 101.1% of the EU average^{[8]Source: European Commission — European Innovation Scoreboard 2026, Country Profile Malta}.

Tax incentives. Malta's headline corporate income tax rate is 35%, but a shareholder refund mechanism lets non-Maltese resident shareholders reclaim up to 6/7 of the tax paid at the corporate level on trading income, which lowers the effective rate materially^{[9]Source: U.S. Department of State — 2025 Investment Climate Statements: Malta}. 

Malta has concluded double-taxation treaties with more than 70 countries^{[10]Source: Tax and Customs Administration of Malta — List of double tax treaties}, and its standard VAT rate is 18%, below the EU average. Malta Enterprise, the government's business promotion agency, offers tax credits, cash grants, loan guarantees, and R&D support ^{[9]Source: U.S. Department of State — 2025 Investment Climate Statements: Malta}.

An individual becomes a Malta tax resident only by spending more than 183 days a year in the country, or by satisfying Malta's domicile rules — a status entirely separate from permanent residence by investment. For a tax resident, Malta's territorial system taxes foreign-source income only when it is remitted to Malta, provided the individual has not acquired Maltese domicile; Malta also levies no inheritance tax, gift tax, or wealth tax.

MPRP qualifying investment conditions

The MPRP has four mandatory components:

1. Property: purchase a qualifying property at a minimum of €375,000 or lease one at a minimum of €14,000 for at least 5 years.
2. Contribution fee of €37,000.
3. Administration fee of €60,000 for the investor and €7,500 per family member aged 18+, except for the spouse.
4. Charitable donation of €2,000 to a qualifying registered NGO or society.

The main applicant demonstrates total assets of at least €500,000, of which at least €150,000 is held in liquid financial assets. Or, alternatively, total assets of at least €650,000, of which at least €75,000 is held in liquid financial assets.

Family immigration

The MPRP allows the main applicant to include:

• spouse or common-law partner;
• children under 29;
• principally dependent parents and grandparents of any age. 

Residence timeframe and validity

Obtaining permanent residence requires at least 6 months. Residence cards are issued with a 5-year validity and are renewed after that period, while the underlying permanent residence status does not expire.

To maintain residence, an investor faces no mandatory minimum stay requirement in Malta.

Investment immigration is a legitimate and well-established category, but it carries specific risks that differ from those associated with purely passive investment.

Business-route substance requirements

Business options usually require genuine economic substance from the underlying company. 

Job creation that does not materialise. Under Portugal's options, the investor creates and maintains 5 permanent jobs for a minimum of 3 years. Failure to maintain them during a renewal audit risks non-renewal of the permit.

Company dissolution or insolvency. If the investee company fails, the investor faces the dual loss of the investment and the residence basis.

Regulatory non-compliance. The investee company must be tax-compliant and in good standing. Migration Service verifies corporate status at each residence permit renewal.

Banking and FATCA considerations for US applicants

US nationals are subject to citizenship-based taxation and FATCA reporting requirements regardless of where they reside. Obtaining EU residence does not affect US tax obligations ^{[11]Source: IRS — U.S. Citizens and Resident Aliens Abroad}. 

Additionally, some European banks apply enhanced Due Diligence to US-person account holders, which complicates the banking setup required for programme compliance. Early engagement with a US-qualified tax adviser is essential before committing.

Due Diligence failure and application rejection

EU countries apply source-of-funds Due Diligence checks. Common rejection triggers include:

• criminal records or undisclosed regulatory sanctions in any jurisdiction;
• politically exposed person status without adequate disclosure and explanatory documentation;
• source-of-funds documentation that cannot trace capital back to its original legitimate source;
• incomplete or inconsistent financial disclosures across different jurisdictions;
• business plans for job-creation or company routes that do not evidence genuine commercial activity.

Malta explicitly states that any material misrepresentation in the application is grounds for refusal and revocation of any permit already issued^{[12]Source: MPRP FAQ V2.6.3}. Portugal's AIMA applies equivalent standards under Law 23/2007.

Processing delays and backlogs

For example, Portugal's AIMA has experienced significant processing backlogs since 2023; a specific approval date is not a reliable planning assumption. Document deficiencies often extend considerably, and consulate appointment availability varies by country.

Rule changes and programme volatility

Investment migration frameworks across Europe have been revised repeatedly in recent years. An investor who researched a programme one year risks arriving at a consultation expecting terms that no longer exist. Programme conditions, visa-free lists, and tax rules may change at any time with prospective effect. 

Checking that source documents carry an explicit update date and verifying qualifying routes against current official programme criteria reduces the likelihood of acting on outdated assumptions.

Total cost significantly exceeds the minimum investment threshold

The minimum investment threshold does not reflect the actual capital required. For any programme, government fees, administrative charges, health insurance, translation, notarisation, and professional service fees add materially to the headline figure. 

Requesting a full cost breakdown before signing any engagement agreement is a standard precaution.

Programme comparison errors and goal–route mismatches

Each programme suits a different combination of investor profile, budget, timeline, and business objective. An explicit goal-to-programme mapping exercise before investment route selection is the most effective way to reduce this risk.

Immigrant Invest is a licensed agent and consulting company that helps clients secure an entrepreneur visa in Europe, with dedicated programme specialists for Portugal, Italy, Latvia, Cyprus, Malta, and Hungary.

The process begins with a structured eligibility assessment that reviews the investor's nationality, source-of-funds profile, family composition, business objectives, and tax position to identify which programme best aligns with their goals.

For US and UK clients, this assessment includes a preliminary tax-interaction review to ensure the chosen residence option does not create unintended fiscal obligations. 

This preliminary check also reduces the risk of a Due Diligence failure at the programme level. Immigrant Invest discloses all fees in writing before engagement, with no retrocessions from investment providers.

Immigrant Invest services cover the full document lifecycle: translation, apostille, notarisation, filing, and coordination with local counsel in each jurisdiction.

We also coordinate commercial and legal Due Diligence on the target company and prepare the business plans.

For Malta applications, the team handles the full process from property search and reservation through to Residency Malta Agency submission, including coordinating the NGO donation and preparing the asset declaration.

1. Programme structures differ substantially for an entrepreneur visa in Europe. Portugal, Latvia, Italy, and Hungary link residence directly to business activity, while Cyprus and Malta rely more heavily on property and financial conditions.
2. Lower entry costs bring greater operating obligations. Hungary and Latvia require active, income-generating companies, while Hungary also imposes a significant physical-presence requirement.
3. Permanent status requires more upfront capital. Cyprus and Malta grant permanent residence from first approval, with relatively limited ongoing stay requirements but higher initial commitments.
4. Business substance is essential. Company-based routes can depend on maintaining jobs, active operations, tax compliance, and the underlying investment throughout the residence period.
5. Headline investment figures understate total costs. Government fees, administration, insurance, translation, notarisation, and professional services can materially increase the required capital.
6. Due Diligence and programme changes remain material risks. Applicants need traceable sources of funds and consistent documentation, while processing times and programme conditions can change.