Key Benefits of the EU Residence Permit: Complete List

Benefits of the EU Residence

The EU residence permit is one of the most sought-after legal statuses among high-net-worth individuals, offering a wide array of benefits that go beyond mere residency. It provides freedom of movement, access to world-class healthcare and education, and business opportunities that span across the entire European Union. 

Albert Ioffe, Legal and Compliance Officer at Immigrant Invest, will explore the key benefits of holding an EU residence permit, the pathways to obtaining it, and how investors can take advantage of various residency-by-investment programs, including Malta Global Residence Program.

Pathways to European Union residence permit

There are several pathways available for high-net-worth individuals looking to obtain EU residency. The most popular is through residency-by-investment programs, socalled Golden Visas, where an individual can invest in real estate, a business, or government bonds in exchange for residency rights. All these programs are available for the attraction of foreign investment and offer such investors and their families the opportunity for residence in Europe.

Other pathways include employment-based visas, where residency is granted to those with job offers in EU countries. Family reunification visas are also an option for those who have close family members already residing in the EU. It offers residence for young aspirants who have no other way of pursuing higher studies in the EU-they can get their course through student visa.

Each pathway has specific requirements and processes, which vary by country, but all offer access to the significant benefits of EU residency.

Advantages of EU golden visa

The EU Golden Visa programs offer fast-tracked residency for investors and their family members, often with shorter processing times compared to traditional visas. 

This makes it an appealing option for high-net-worth individuals seeking a quick and efficient way to gain a European Union residence permit without obligations to live there permanently to manage the status.

EU countries with residency-by-investment programs

Several countries within the European Union offer residency-by-investment programs, with varying investment thresholds and requirements.

Malta

Malta’s Global Residence Programme offers residency in exchange for property investment, providing access to the Schengen Area and favourable tax benefits. To obtain a residence permit under the Malta Global Residence Programme, the applicant must:

  1. Purchase or rent real estate in Malta: €220,000+ for purchase or €8,750+ annually for rent.
  2. Pay a minimum annual tax of €15,000.
  3. Pay an administration fee of €5,500+.

One of the main advantages is Malta’s flat income tax rate of 15% on foreign income brought into Malta. This is the rate that shall apply after having paid an annual tax of at least €15,000. Malta is also quite attractive for some as it charges no inheritance taxes, wealth taxes, or taxes on property.

Hungary

Hungary’s investment residency program allows individuals to gain residency by setting up businesses or investing in real estate, making it a popular choice for entrepreneurs looking to access the Schengen Area.

The Hungarian Golden Visa has various points into which one can pass:

  1. The acquisition of real estate fund units-holding an average of €250,000+.
  2. Property purchase — €500,000+.
  3. Donating an institution of higher education-more than €1,000,000.

The option to purchase real estate will open on January 1st, 2025. It is necessary that the objects are acquired after this date in order to be eligible for the Golden Visa.

Cyprus

Although Cyprus suspended its Cypriot Permanent Residence program, the country continues to offer a residency-by-investment scheme, primarily by real estate investments.

Investors who meet certain criteria can apply for a permanent residence permit. This permit is part of Cyprus’s residency-by-investment program and requires a real estate investment of at least €300,000. 

Under this permit, the applicant shall also be permitted to grant residence status to their family members, including spouse and children. The process takes nine months for approval.

Greece

The Greece Golden Visa Program has as a sole demand acquiring property worth €250,000. This program grants residency to the investor and his family with visa-free travel through the Schengen area.

Here is a summary of investment options for the Greece Golden Visa program with amounts:

  1. Real estate purchase — €250,000+.
  2. A 10-year lease of tourist accommodation — €400,000+.
  3. Timeshare for tourist accommodation — €400,000+.
  4. Investment in mutual or alternative funds — €350,000+.
  5. Fixed-term bank deposit — €500,000+.
  6. Purchase of government bonds — €500,000+.
  7. Capital investment in Greek companies — €500,000+.
  8. Taking effect from the corporate or government bonds in trading – that is, Above €800,000.
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Portugal

The Portuguese Golden Visa is an exceedingly popular scheme that has an investment requirement of at least €250,000. It opens the door for its holder to the Schengen Area and shows a straightforward route after five years for acquiring citizenship.

Italy

Italy offers a variety of residency options, including an Investor Visa that allows for investments in government bonds, startups, or philanthropic donations with a minimum investment threshold of €250,000.

There are several investment options for those interested in the Italy Golden Visa:

  1. Innovative startups — €250,000+
  2. Government bonds — €2 million+.
  3. Company shares — €500,000+.
  4. Charitable donation — €1 million+.

Spain

A minimum of €500,000 invested in real estate is enough under Spain’s Golden Visa program to receive residency for the investor and their family. This visa offers several notable benefits. One key advantage is that it allows visa-free travel across all Schengen Area countries, providing flexibility for business and leisure. 

An additional benefit of the permit is that it enables its holder to stay and work in Spain without additional permits. It is also permissible to have family members such as spouses, children, and parents included in a similar visa.

For those aiming for Spanish citizenship, a total of 10 years of residency is required. Another advantage of Spain’s Golden Visa is that there is no requirement to live in the country year-round, which allows investors to manage international businesses while still holding residency. 

11 EU residency benefits

1. Free movement across the Schengen Area

Having a European Union residence permit gives one of the greatest advantages in the world: the right to as well travel without restrictions across the Schengen area. 

It is the zone where the border controls are abolished between 29 European countries to allow free movement. Whether you’re travelling for business or pleasure, having an EU residence permit makes crossing borders as simple as travelling within a single country.

For example, a Portuguese residence permit allows you to travel freely to countries such as France, Germany, and Italy without needing to apply for separate visas. This benefit is invaluable for investors who need to visit multiple countries frequently for work or leisure.

2. High-quality healthcare access

And another very attractive feature of EU residency is, of course, access to some of the best healthcare systems in the world. Most of the EU countries have a public healthcare system, which is more or less free or very heavily subsidized. 

For instance, Spain’s national healthcare system is renowned for its quality and affordability. As a resident, you can receive medical care comparable to private services in other parts of the world, but at much lower costs.

Moreover, countries like Portugal and Malta offer specialised healthcare services that attract medical tourists. By holding a residence permit, you can enjoy preferential access to these services, ensuring that you and your family receive top-notch medical care when needed.

3. Top-tier education opportunities

An EU residence permit also opens the doors to a wide range of educational opportunities. The European Union is home to some of the world’s most prestigious universities and academic institutions, such as: 

  • the University of Cambridge in the UK; 
  • the University of Amsterdam in the Netherlands; 
  • the Bocconi University in Italy. 

As a resident, your children can apply to these institutions with the same rights as EU citizens, often benefiting from lower tuition fees and easier admission processes.

Countries like Germany and France offer free or low-cost higher education even to non-EU citizens with resident status, making it an excellent option for families prioritising quality education.

4. Tax advantages for residents

Many EU countries offer attractive tax regimes to foreign investors. Italy offers a flat tax rate of €200,000 per year for high-net-worth individuals relocating to the country, regardless of their global income. 

These tax benefits are particularly advantageous for business owners and entrepreneurs looking to optimise their global tax strategies.

5. Exceptional quality of life

Living in the European Union means having access to a high standard of living, with excellent infrastructure, low crime rates, and vibrant cultural scenes. Countries like Spain, Portugal, and Italy offer warm climates, beautiful landscapes, and rich histories, making them attractive destinations for investors seeking a better work-life balance.

For example, in Portugal, you can enjoy coastal living in cities like Lisbon or Porto, where the cost of living is significantly lower than in other global cities like London or New York. Yet, the quality of life remains high, with excellent healthcare, education, and public services available to all residents.

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6. Robust business environment

The European Union is one of the world’s largest and most stable economic zones, offering countless opportunities for business growth and expansion. 

An EU residence permit allows you to set up or invest in businesses across the region, taking advantage of the single market’s unified regulatory framework. This makes cross-border trade and investment significantly easier, providing access to over 450 million consumers.

In addition, many EU countries offer specialised business incentives to attract foreign investment. For instance, Malta and Cyprus have favourable corporate tax regimes, making them attractive destinations for multinational companies looking to establish a European base.

7. Real estate investment potential

Real estate markets in many EU countries are booming, with property values steadily increasing in popular locations. By obtaining an EU residence permit by real estate investment, you not only secure residency but also gain a valuable asset. 

Countries like Spain and Greece offer strong rental yields and capital appreciation, particularly in tourist hotspots such as Barcelona and Athens.

For example, in Greece, the minimum real estate investment threshold for the Golden Visa is €250,000, which grants access to residency and the potential for future citizenship. This investment can also generate rental income, providing a dual benefit for property investors.

8. Path to EU citizenship

One of the most attractive aspects of EU residency is the possibility of eventually obtaining full citizenship. Many countries, such as Portugal and Spain, offer a clear pathway to citizenship after holding residency for a certain period, typically five to ten years. 

This citizenship grants full rights as an EU citizen, including the right to vote, access to social security benefits, and enhanced travel privileges.

9. Inclusion of family members

EU residency programs often extend benefits to family members, making it a suitable option for those looking to relocate with their spouse and children. 

For example, the Portuguese Golden Visa allows the inclusion of dependents, meaning your immediate family can also gain residency and enjoy the same benefits in healthcare, education, and freedom of movement.

10. Cultural diversity and lifestyle

Europe is a culturally rich continent, offering a unique mix of modernity and tradition. Whether it’s enjoying the culinary delights of Italy, exploring the art museums of France, or relaxing on the beaches of Greece, living in the EU gives you access to experiences that span a variety of cultures and traditions.

As an EU resident, you can immerse yourself in these cultures, learning new languages and enjoying an enriched lifestyle that combines work and leisure in equal measure.

11. Political stability and safety

The European Union is known to be politically stable, with a well-established legal system, and extremely low criminality; thus, it is one of the most secure places to live and invest in. For high-net-worth individuals seeking a secure environment to raise a family or manage their wealth, EU residency offers peace of mind. 

Countries like Malta and Portugal consistently rank high on global safety indexes, providing a stable and secure environment for residents.

How to obtain European residency by investment

The following essential steps will assist you in acquiring EU residency through investment:

  1. Choose a country and program. Examine all the investment residency programs available in the EU and choose the right one that will suit your financial goals and lifestyle preferences.
  2. Make the required investment. Depending on the country, this could be a real estate purchase, a business investment, or a government bond contribution.
  3. Submit your application. This typically involves providing proof of the investment, financial documentation, and a clean criminal record.
  4. Obtain your residence permit. After the approval of your application you will get your residence permit for living, working, and traveling within the boundaries of the EU.

Conclusion

Visa-free travel across the Schengen Area, alongside a range of world-class healthcare, education, and business opportunities. These are some of the benefits one would enjoy while possessing an EU residence permit.

With various residency-by-investment programs available across Europe, high-net-worth individuals have multiple options for securing residency. Whether you are seeking a pathway to citizenship or simply want to enjoy the many lifestyle benefits Europe offers, now is the ideal time to consider obtaining an EU residence permit.