The enduring appeal of Spain as a retirement and relocation destination for Britons is under threat as the Spanish government considers imposing heavy restrictions on property purchases by non-EU residents. Prime Minister Pedro Sanchez’s proposed 100% tax on property purchases by non-resident, non-EU buyers has stirred significant anxiety, driving potential British and South African buyers to reconsider their plans. Amid these unsettling developments, where else can property investors and prospective expatriates turn for favorable tax rates, accessible visa options, and a welcoming environment?
Alternative Destinations with Tax Incentives
Tax efficiency is a crucial factor for many expatriates and retirees. Countries like the United Arab Emirates have risen in popularity, offering zero income tax and a business-friendly atmosphere that appeals to a broader demographic. The UAE’s golden visa, requiring an investment of AED 2 million, and other long-term residence options highlight its attractiveness as a tax haven.
Cyprus and Malta are also competitive, offering significant tax benefits for non-domiciled residents, such as exemptions on dividends, interest, and certain capital gains. Similarly, Greece and Italy offer lump-sum tax regimes that can be highly advantageous for wealthy expatriates looking to minimize their tax liabilities.
Visa Accessibility and Real Estate Investment
With Spain phasing out its golden visa program, potential investors may look towards Portugal, where the golden visa can be obtained through a minimum investment of €250,000 in a fund or donation. Portugal’s D7 visa is another attractive option for retirees, requiring only a modest monthly income.
Greece, despite raising investment thresholds in popular areas, still allows golden visa access for properties worth €250,000 in less sought-after regions, providing a more budget-friendly option. France, though lacking a golden visa program, offers straightforward visa processes and multiple residence options.
Real Estate and Retirement Perks in Other Countries
While Spain’s changes might deter some, other nations offer compelling incentives. Cyprus’s flat tax rate on pension income and Malta’s retirement program, with a 15% tax on foreign income, are particularly appealing to retirees seeking tax-efficient solutions.
A Welcoming Environment for Property Owners
Unlike Spain, countries like Italy, Portugal, and Greece are known for their hospitable environments towards foreigners. Crete, for example, is celebrated for its sacred view of hospitality, making it a favored destination for Britons under various visa schemes.
