Europe has been offering residency for passive investors for the last decades, mainly through their country members. The European Union (EU) has made it possible for non-residents to invest in EU countries without being taxed or with tax benefits. This means that you can invest in some countries within the EU and enjoy tax benefits. However, there are certain conditions that you should follow before investing in the EU.
Usual Residency Requirements
To qualify as a resident investor, you must meet some of the following requirements, depending on the country you apply for:
• Have a valid passport or national identity card issued by a member state of the EU.
• Be able to prove that you have sufficient funds available to cover your living expenses during the period of investment.
• Have a bank account with a minimum balance of a certain amount.
• Not be involved in criminal activities.
Benefits of Investing in EU Countries
Investing in the EU gives you access to a wide range of financial products including stocks, bonds, mutual funds, ETFs, etc. These investments also offer you a variety of tax advantages.
• No capital gains tax on dividends received from stocks held for at least three years.
• No income tax on interest earned on loans taken out against securities.
• No withholding tax on dividends received from shares held for at least five years.
What Countries Offer Residence by Investment in Europe?
There are countries in Europe that are offering residency for passive investors. These countries include Spain, Malta, Ireland, Portugal, and previously Cyprus.
The main reason why these countries are offering residency for passive investments is that they are seeking to attract foreign capital.
In order to qualify for residency, you must invest at least €280,000 (in the case of Portugal after the recent changes to its Golden Visa program) through a variety of investment options, including investment funds.
Once you have invested the required amount of money, you will receive citizenship after some years.