_The countries wooing the ultra-rich through residency schemes and those clamping down

Growing economic risk and political uncertainty simmering alongside positive sentiment among the world's wealthy -  the majority of UHNWIs expect their wealth to increase in 2019 according to the annual Attitudes Survey - is fuelling enthusiasm for overseas property investment where permanent residency and second citizenships are within easy reach, subject to funds. 

Research shows that just over half of Latin America's UHNW population - a staggering 56% - are planning to buy new homes outside of their country of residence in 2019, followed by 25% of Asia's wealthy, 27% of Middle Eastern ultra-rich and 21% of UHNWI's based in Europe.  

So which countries are working hard to inveigle a slice of the global elite's fortune through second citizenships? We look at the ten new and popular residency or citizenship by investment schemes across the globe as well as listing the countries that are scaling back on foreign buyers' access to their property markets. 

New passport and residency schemes across the globe:

Moldova passport by investment scheme: 

Moldova launched new citizenship by investment (MCBI) programme in July 2018 offering citizenship and passport to foreigners investing in the country.

At a glance - qualifying investments for citizenship:

• Contribution to the Public Investment Fund (PIF) for Sustainable Development – EUR 100,000
• Minimum real estate investment of EUR 250,000 and owned for 5 years 

Benefits

• Full citizenship, with passport rights, for the applicant and family members
• Visa-free access to 121 destinations around the world including Russia, Turkey and the countries in Europe’s Schengen area

Montenegro passport by investment scheme: 

Open for applications by the end of 2019 is the eagerly anticipated Montenegro citizenship investment program that will run for three years. 

At a glance - qualifying investments for citizenship:

• The contribution/donation of EUR 100,000 payable to the government plus an investment of EUR 250,000 into government approved projects in undeveloped area of Montenegro or
• A contribution of EUR 450,000 into government approved development projects in developed area of Montenegro

Benefits 

• Permanent residency will be granted against a qualifying one time investment. Montenegro is expected to join EU in 2025 after which residents will be granted free movement across EU countries and the wider Schengen area

Popular passport and residency schemes across the globe:

Spain residency by investment scheme:

According to figures compiled for this year's prime residential market performance report, Madrid will be one of the top performing luxury residential markets in 2019, with the world's wealthy attracted to the excellent returns on investment, political stability and lifestyle perks.

The 'Golden Visa' scheme in Spain has been running since 2013 and is one of the most popular 'gateways to Europe' favoured by overseas investors, particularly from Latin American countries. 

At a glance - qualifying investments for citizenship: ( To receive Spanish citizenship, an applicant will need to have lived in Spain 183 days per year, for a minimum of 10 years)

• Investment of at least EUR 2 million in Spanish Treasury bonds
• Investment of at least EUR 1 million in shares of publicly trading Spanish companies or non-trading ones
• Deposit of at least EUR 1 million into Spanish bank accounts
• An investment of a minimum of EUR 500,000 in Spanish real estate, including rental property 
• A ‘significant' business investment which contributes to meaningful job creation, socioeconomic benefits or technological/scientific advancement

Benefits

• Spanish residency
• Once granted, the investor is able to work and live in Spain
• Holders of the temporary resident permit are granted free travel throughout Europe’s Schengen area without visa requirements
• An investor’s spouse and children under 18 years old can be included in a single application

Portugal residency by investment scheme:

Portugal launched its hugely popular ARI/Golden Visa scheme in 2012 allowing wealthy residents the right to live, study and travel in Europe and qualify for permanent Portuguese residency after five years. 

At a glance - qualifying investments for citizenship:

• A minimum investment of EUR 500,000 in Portuguese property
• Transfer of capital of at least EUR 1 million
• Creation of at least 10 jobs.
• Acquisition of real estate with a value of at least EUR 500,000
• Transfer of capital of at least EUR 350,000, invested in research carried out by public or private scientific research institution

Benefits

• A non-EU investor will only need to spend around seven days per year in Portugal ( during the first year) to maintain the residency, while still reaping all the benefits of being an EU resident - including visa-free travel in the Schengen area
• Prospect of permanent residency and citizenship after five years 

Latvia residency by investment scheme:

Part of the Eurozone, Latvia introduced its Golden Visa programme in 2010 proving popular with wealthy foreigners from Russia and the CIS, in particular.  Under current rules, investors can gain a five year residency permit by investing a minimum of EUR 250,000 in Latvian property. Applicants are entitled to apply for citizenship in Latvia after 10 years of residence and permanent residence after having resided in the country for a minimum of five years. 

At a glance - qualifying investments for citizenship:

• An investment of EUR 250,000
• A minimum investment of EUR 300,000 in government issued bonds is required for a period of no less than 5 years
• A minimum deposit of EUR 300,000 in a Latvian credit institution must be made for a minimum period of 5 years

Benefits

• Full family residency
• Investors can freely travel across the EU Schengen area

Malta residency by investment scheme: 

Enjoying a stable political climate and strategically located between Europe and Africa, with excellent air links, Malta offer wealthy non-EU investors an attractive tax status, residency and visa scheme. 

At a glance - qualifying investments for passport:

• An investment in government bonds of EUR 250,000 to be retained for a minimum period of five years
• A non-refundable government contribution of EUR 30,000
• A property purchase of EUR 320,000 

Benefits

• Investors obtain an EU residence card providing holders with visa-free travel within the Schengen area
• Right to reside indefinitely in Malta
• Five years’ permanent residence, renewable indefinitely

Cyprus residency by investment scheme: 

An EU member state, the small island country of Cyprus offers foreign investors two Golden Visa incentives through real estate investment - one for permanent residency and one for citizenship. 

At a glance - qualifying investments for citizenship:

• An investment of minimum EUR 2 million in the purchase or development of real estate
• An investment of at least EUR 2 million in the purchase, creation or participation in businesses or companies
• A minimum investment of EUR 2 million into alternative investment funds 

At a glance - qualifying investments for residency:

• The purchase of property in Cyprus over €300,000

Benefits ( residency):

• Free movement, freedom to work and study within the EU
• Full family residency
• Visa-free travel to 173 destinations including Canada, Hong Kong, Singapore and the UK

Countries clamping down on foreign property investment

Conversely, a number of countries are making it more difficult for non-residents to invest in property, making the world's wealthy jump through hoops by introducing overseas buyer taxation on residential purchases.

Singapore, Australia, New Zealand and Canada have all recently made it harder for the ultra-wealthy to own property, become residents or passport holders while in England and Northern Ireland a consultation on an overseas buyer’s taxation (stamp duty) began in January 2019 as a measure to dampen demand and remedy property being bought and left empty. 

New Zealand

From July 2018, the government announced a blanket ban on foreign buyers purchasing homes in the country with the introduction of the Overseas Investment Amendment Bill. Wealthy property investors from Singapore and Australia will still be allowed to purchase New Zealand real estate according to the new rules, although buyers from any country are able to buy apartments in large, off-plan block in a bid to boost new home building. 

Singapore

Singapore government’s introduced cooling measures in July 2018 by increasing foreign buyer stamp duty to 20% - an increase of 5% from the original 15%. 

Australia 

Tougher investment rules for overseas buyers property in Australia have seen wealthy investors become more creative with real estate their strategies; under current legislation, in 'normal circumstances', no purchase of established Australian property (i.e. an existing property) by a foreign citizen can be made without prior approval from the Foreign Investment Review Board (FIRB).

However, foreign citizens who operate substantial businesses in Australia may obtain approval to purchase established dwellings and foreign citizens can still apply to purchase new homes and vacant land. 

Canada 

In 2018, Ontario and British Colombia (B.C.) imposed new overseas buyer restrictions.

In B.C foreign investors are required to pay a 20% Additional Property Transfer Tax (APTT) in a bid to cool a heated property market and soaring house prices – up from the original 15% imposed in July 2016.

In Ontario, buyers who are not permanent residents of Canada will pay a 15% Non-Resident Speculation Tax (NRST) on the purchase or acquisition of residential property located in the Greater Golden Horseshoe Region (GGH).

UK 

Announced at the tail end of 2018, the UK government is considering an additional stamp duty land tax (SDLT) surcharge of one or three per cent on foreign buyers of UK properties. A consultation is currently underway, but it is not yet known when or if the new tax rate might be introduced.

For in depth research into global wealth flows, foreign investment strategies, luxury residential markets and cities set to outperform visit The Wealth Report 2019.