Golden tickets

Long delays in processing, aftershocks from the Greek debt crisis, and other inconveniences haven’t stopped Asian buyers from seizing upon citizenship-for-investment schemes in southern Europe

- Al Gerard De La Cruz

From replicas of Tuscan villages in Thailand to recreations of Venetian canals in Macau, European-themed real estate has long been coveted in Asia. And now, thanks to a growing number of “golden visa” schemes in southern Europe, investors from Asia can live out their Mediterranean dream for real.

These programmes, designed by governments to funnel significant sums of cash into their ailing economies, essentially sell the freedom to live and work within the European Union.

For Asian investors, these schemes are proving hugely enticing. Not only do these visas or residence permits come with sweeteners such as exemptions on capital gains tax and duties on property transfer, they also dangle the carrot of citizenship in the prospective country and, consequently, the EU.

Investors from Asia have not been slow on the uptake for these schemes. One of the pioneers of the golden visa initiative, Portugal, has witnessed EUR1.53 billion (USD1.66 billion) in home sales since its scheme got underway in 2012. Of the more than 2,700 Portuguese golden visas issued, almost 80 percent have been snapped up by Chinese nationals, according to the country’s Real Estate Professionals and Brokers Association.

Chinese property investment even surged 351 percent in Cyprus a year after it introduced its scheme in 2014, according to data from property portal Juwai.com. The country has the fastest citizenship-by-investment route in Europe, with applicants obtaining a Cypriot passport within a three-month span. Aspiring citizens must be prepared to invest at least EUR2 million (USD2.1 million), including the purchase of a EUR500,000 home.

These investments are inherently risky since they are siphoned into economies that are still convalescing from recent downturns.