European Golden Visa programs offer an excellent opportunity to acquire a residence permit for real estate. When buying expensive real estate, you need to be careful trying to protect yourself from fraudulent schemes. After all, foreigners are often targets of robbers and schemers. Are you going to get a residence permit for real estate? We recommend that you study the following tips for buyers to minimize the risks when applying for a golden visa.
Bank/insurer assessment
Properties sold by brokers/developers are often overpriced for sale. Ask your bank/insurance company for an estimate with a certificate from an independent surveyor, reflecting the real value of the property. Avoiding overpayments at the stage of buying an asset under a golden visa, an applicant for a residence permit for real estate will easily exit the investment in the future, selling the previously purchased asset at the same or even higher price.
Government approval
Remember that in several countries, when applying for a citizenship/residence permit for real estate, you can only invest in government-approved development projects. Otherwise, the investor will not be eligible for the desired immigration status.
Obtaining a golden visa in Malta does not involve the need to fulfill such stringent conditions. However, applicants wishing to receive a discount (lowering the entry threshold when investing in underdeveloped regions) need to invest only in certain areas. Consult with a specialist to fulfill the conditions for obtaining a discount and protect yourself from possible fraud on the part of the developer/seller.
Taxes
Get as much information as possible regarding taxes imposed on the purchase/operation/resale of real estate in the country where you plan to apply for a golden visa. For example, consult with a professional regarding VAT, Changeover Tax / Stamp Duty, Capital Gains Tax, Wealth Tax.
When preparing to obtain a residence permit for real estate for rent, study the tax legislation levied on rental income, including income from renting through an online service. Make sure you can get a local letting permit if you plan to generate passive income from such a source.
Restrictions for foreigners
Remember: many countries restrict the rights of foreigners to buy land/buildings in restricted areas. We are talking, in particular, about the land used by the military. Access to such areas for ordinary people is limited. Examples: Turkey, Greece. Attempts to invest in such areas for obtaining a residence permit for real estate can lead to disappointment, since the investor will lose time/money without obtaining a golden visa.
Distressed hotels/shopping centers
Are you applying for a residence permit (residence permit) for hotel / commercial property? If you intend to obtain a golden visa through a share, for example, at a hotel, do not forget to ask the seller for information on the hotel’s profitability. Due to Covid-19, many tourist sites and hotels have suffered, faced with a lack of visitors. Most likely, investments will not bring any profit until everything returns to normal (experts say, it will take another 1-2 years to expect a return to normal).
Price monitoring
Monitor the global market by tracking the lowest prices per square meter by country. It is not worth investing in a country where real estate is overpriced. Save as much as possible by choosing a residence permit for real estate, a country offering the best price/quality/profitability ratio. Right now (during the pandemic), many states are making great offers to applicants for a golden visa.
Use the services of a lawyer
Don’t blindly trust real estate developers/sellers. Always use the services of a lawyer, checking documents and directly real estate (for example, for encumbrances). There is a high likelihood of having problems hidden by the counterparty, including unpaid utility bills/taxes. The lawyer will ask for a fee of 1-2 percent of the transaction price. Often, additional costs are justified, because when applying for a residence permit for real estate, a foreigner spends hundreds of thousands or even millions of euros.
Avoid counterparties who promise all clients a 100% result when applying for citizenship/passport / golden visa (obtaining the desired status is not guaranteed, since the investor may simply not meet the program criteria in terms of reliability).
Baltic Legal provides a wide range of services in the field of corporate law, with full support and advice, and dealing with tax issues. Get a Golden visa in Europe with our professional assistance.
