When purchasing real estate abroad, citizens of post-Soviet countries for the most part assign it the role of vacation housing, “alternate airfield” or investment with the aim of subsequently receiving passive income. However, you can invest in this way in the future of your children if your plans include their permanent residence abroad.
Real estate has always been considered a profitable and reliable investment, and in the last 20 years, when “new horizons” opened up, representatives of various segments of the population began to give preference to housing in such EU member states as Spain, Portugal, Greece, Malta, Cyprus, as well as Montenegro and Turkey. If we do not take into account the last country, better known as one of the most popular all-inclusive holiday destinations, almost all the others attracted foreigners with a warm climate, a stable political situation, ample opportunities for starting a business, and more than affordable prices for basic goods and food and – with the transition to the euro – low inflation.
In other words, having bought real estate in Europe, one could be confident in the future – and for more than one decade – especially if the property was located in a region that was very popular among EU citizens. Examples include the Costa Blanca, Costa Brava, Costa del Sol in Spain, Lisbon with its suburbs (Cascais, Estoril) and the Algarve resorts in Portugal, Italian Tuscany or the Halkidiki peninsula in Greece.
As of today, there are at least two options for purchasing residential property abroad as a way to provide future generations with a decent life.
The first option is to purchase a budget, but at the same time, liquid real estate property in the so-called “university” cities or nearby populated areas. As practice shows, renting housing during your studies is justified only if the goal is only to obtain higher education in Europe without plans for further employment in any specific country.
If the choice was made consciously, then you will not need to rent housing in the future – especially since the rental conditions may change, and finding an equivalent option may be very difficult. As practice shows, in a number of countries, buying an apartment (even with mortgage lending) is much cheaper in the medium and long term than renting it. If you move to another place, the property can be guaranteed to be rented out and thus receive stable passive income.
The second option is to purchase real estate under the Golden Visa program, which is currently valid in a number of European countries. The minimum cost of such an object starts from 250 thousand euros (excluding taxes) in Greece and Latvia, 350 thousand in Portugal and 500 thousand in Spain, but for this amount the investor’s minor children or dependent adults automatically receive a residence permit, then – permanent residence, and can become citizens of the country faster than under the standard scheme (usually after 7 years instead of 10).
An EU passport gives its holder the opportunity to live and work in any state that is part of this economic and political entity, not to mention visa-free entry – not only within Schengen, but also to the USA, Canada, Great Britain, Australia, etc. . Thus, as of 2021, citizens of Spain can easily visit 187 countries, Portugal – 186, Greece and Malta – 183, while 128 countries are open to Ukrainians, and 119 to Russians.
Finally, simply purchasing real estate in the euro area countries, which are least susceptible to various crises, for the purpose of subsequent resale can bring a very good income. Thus, during the period from June 2005 to June 2021, the average cost of one square meter in Portugal increased from 1056 to 2200 euros, and in Lisbon – from 1338 to 3460 euros, reaching its historical maximum. In addition, there is no guarantee that children will want to follow the example of their parents and connect their lives with the same country.