Residence in addition to overseas property

14.02.2011 08:02
The policy of different states with regard to foreign property buyers is markedly different. There is power, where foreigners - a welcome guest in the market and the government is taking steps to increase the attractiveness of local sites for this audience. For some States this issue has become especially important after the crisis.

Additional benefits that are provided to foreign buyers of real estate can be divided into two main categories. This is no possibility of obtaining a residence permit or citizenship, any special conditions that facilitate the buying process - for example, affordable loans, simplified scheme of the transaction and tax benefits.

Related article: Real Estate Market in Tallinn «bloomed» in the spring

Passport bonus

One of the most tangible benefits that can get a buyer of real estate abroad - a residence permit, or, more pleasantly, passport. If a citizen of the U.S. or UK is not a particularly interesting question, then, for Russian buyers, he often plays a role. According to surveys, many Russians are buying overseas property think about creating a haven for the future.

Once is worth saying that in the most popular European countries, no such possibility. They practice nearly a unified approach to granting citizenship, residence permit and visas. Foreign homeowner receives an annual multivisa for a period of stay not exceeding 180 days a year. The same right is given by the immediate family - wife, husband, children and parents. And nothing more.

As a rule, the possibility of obtaining citizenship when buying property provide the state with a developing, problematic economy. Today, it is Panama, the Dominican Republic, Costa Rica, and St. Kitts and Nevis - a country in the Caribbean. In 2010, this list also joined in Latvia.

Of course, in any of these countries a passport is issued not everyone who bought an apartment or house. There are certain requirements, the main one - the price to have purchased the property was not less than the minimum.

For Panama is 300 thousand dollars. When buying on such amount foreigner gets a five-year residence permit. After this period, he can claim to citizenship, provided that the property has not sold. Since the Panamanian passport, you can visit almost all Latin American countries, as well as states within the Schengen zone.

In the Dominican Republic when buying a home worth 200 thousand dollars you can apply for citizenship after six months of residence. In addition, there is recognized the institution of dual citizenship, then there is no need to renounce his Russian passport. The disadvantage of this scheme - that whole period of registration of citizenship need to reside in the country, and that seven or eight months. The passport entitles the visa-free entry into Switzerland, Britain, Israel, South Korea, Iceland, Argentina, Brazil and other South American countries, Japan, Liechtenstein.

In Costa Rica to invest in real estate is not less than 200 thousand dollars. After that, the property owner receives a residence permit, and nine years old can apply for citizenship. The passport entitles the visa-free entry to all EU countries, Asian countries (South Korea, Japan) and Latin America, as well as in New Zealand and South Africa. In addition, Costa Rica - a former colony of Spain, and the citizens of the country provide permanent resident status in Spain (CoML) in just four or five months and two years later, and citizenship.

Another option - an island nation of St. Kitts and Nevis. The main advantage of this country - that economic citizenship can be obtained, not even living here. Requires only a lack of conviction and investment in the economy of more than 350 thousand dollars, including through the purchase of houses. However, to obtain a passport, have bought real estate should be at least five years. After this period it can sell without losing citizenship. The right of citizenship extends to the entire family of the applicant. Holders of the local passport may travel freely within the Schengen area have the opportunity to visa-free entry to the UK, Canada, New Zealand, South Africa, Switzerland, Japan and South Korea.

Recently the list of countries with the possibility of economic citizenship has expanded to Latvia. Here the summer of 2010 was amended to the Immigration Act, under which non-residents may obtain a five-year residence permit when buying a property worth 100 thousand lats (about 150,000 euros) in Riga and at least 50 thousand lats beyond. "It could definitely be of interest to Russian and foreign buyers," - notes Director Vadim Pleiada Orishak. In particular, according to the director of the Department of elite real estate company Knight Frank Helena Yurgeneva, recorded a 20 percent increase in the number of calls clients interested in buying property in Latvia.

Latvia - the only country in the EU and the Schengen area, where customers provided a similar opportunity. However, it is worth considering that the Latvian legislation does not guarantee citizenship when buying a property required value. It just gives the right to apply for Latvian passport.

In some countries the purchase of a property gives the right to a nationality, but allows a permanent residence permit and thereafter. This difference with the citizenship status is usually low: the owner of permanent residency in most countries enjoy all of the capabilities of citizens, except the right to elect and be elected.

These countries include Cyprus, Turkey and United Arab Emirates. For example, in Cyprus, buying property foreigner once granted a residence permit valid for one year, which can be extended - albeit without the right to work.

In Turkey and the UAE, having bought a house, a foreigner receives a one-year visa, after three years, then a residence permit for five years, which can be renewed.

Special conditions for foreign buyers

The second category of benefits for customers - the special conditions that facilitate the buying process: a simplified and well-honed scheme, a minimum of bureaucracy, access to credit. "The most significant factor when choosing a country for investment in overseas property are the possibility of obtaining a residence permit and the availability of mortgage lending," - notes Elena Yurgeneva.

In recent pre-crisis years in the ranking of the most friendly states for foreign buyers were in the lead, Spain and Cyprus. To become a local household and landowner, was enough to have a passport and money in accounts in European banks, including Russian. It was established mechanism for real estate transactions and the possibility of obtaining a mortgage loan of up to 80% of project cost. Politics loyalty had its successes: before the crisis, both countries were among the most popular among Russian buyers.

In times of crisis, much has changed: issuance of mortgage loans in Spain, has virtually ceased due to falling real estate market and a shortage of finance in the banking system. However, in Cyprus, even in the midst of crisis the government took measures to limit the opportunity for banks to raise rates.

According to the head of "A Place in the Sun" by Ivan Ptushkina, now as a successful country to purchase real estate can be called Cyprus (residence permit and permanent residence, credit for the Russians, low taxes) and Italy (visas, residence permits, tax benefits). In the list of eligible countries falls as Portugal, which is against the backdrop of the Spanish recession began to actively promote your property on the international market. "In Portugal gladly give loans to foreigners, requiring a minimum set of documents. For banks, it is important that the buyer had a stable income and in time brought the monthly payments on the loan. Mortgage rates while some of the lowest in Europe - from 3,5%, and you can get a loan of up to 75% of property value, "- said the director of Mission Status Home to Russia Alexander Gladkevich.

In Portugal, the Russian can get a mortgage, possessing documents certifying his income and paying income tax. True, it is worth considering that European banks are considered a candidate for a loan to solvent only if he spends on mortgage payments no more than 30% of their income.

The crisis spurred the government and some other countries for additional action to reinvigorate the property market. This affected both local and foreign buyers. In particular, in the first half of 2010 in the U.S. was cutting taxes for first home buyers.

However, the most noticeable "Bonus Policy" manifested not at the level of states, and in the activities of developers. In most countries, one way or another affected by the crisis, developers and sellers of real estate have made efforts to attract more buyers. "Most are trying to give themselves bonuses sellers: installment payment, discounts, free viewing tours and other conditions", - says the director of the department of foreign real estate companies Rentsale Julia Titova.

Schema-free installments, the payment inspection tour and gifts to customers, until recently, were typical of Eastern Europe, Turkey and UAE. Thus, for many objects Montenegro offered interest-free installments for up to five years in the UAE - up to 3 years.

Now this policy is gradually eroding, though find interesting conditions for the purchase is still possible in almost each of these countries. Another thing is that not every property, even with makeweight special offers, is an interesting object for purchase.
Content tags: Overseas property
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