More than 5.5 million Britons live outside the UK, representing almost 10% of the country’s population. They often choose destinations with a more pleasant climate, safer environment, and more favourable tax systems.
One of the simplest ways to move abroad is by obtaining a residence permit by investment. This process usually takes several months.
In this article, Immigrant Invest expert Elena Ruda talks about the best residence by investment options for UK citizens.
Why is residence by investment might be beneficial for UK citizens?
Many Britons choose residence by investment for a variety of benefits. Here are some key reasons.
Lower cost of living. The United Kingdom ranks as the 14th most expensive country in Europe, according to CEO World Magazine. Many countries offering residence by investment, such as Hungary or Spain, are more affordable.
Safety. Residence by investment grants access to countries with stability, low crime rates, and excellent healthcare. The 2024 Global Peace Index by Vision of Humanity ranks the United Kingdom 34th, while countries like Portugal and Hungary are in the top 15. Residents of these countries are less likely to experience assaults, robberies, or thefts.
Tax optimisation. Residency in another country offers tax optimisation opportunities. Investment-friendly nations often have attractive tax regimes, such as lower income tax rates in Cyprus or flat taxes in Greece, which can reduce overall tax liability.
Better climate. Many residence by investment countries have milder climates with abundant sunshine, promoting well-being and an active, outdoor lifestyle with year-round recreational options.
Business expansion. Gaining residency in strategically located countries gives UK citizens access to local and regional markets. These states allow residency holders to start businesses and enter new markets easily, opening doors to the EU, North America, and the Middle East.
Investment diversification. Residence-by-investment programs often require real estate purchases or financial contributions, creating opportunities to diversify investments in stable markets with good returns and asset security.
Pathway to citizenship. Some residence-by-investment programs offer a route to citizenship by naturalisation. After a set period of residence, applicants may become eligible for a passport.
What countries offer obtaining residence by investment?
Many countries offer residence by investment, but we would like to consider the most popular among UK citizens.
Spain is one of these countries. Among all foreign nationals, Britons buy the largest number of properties in Spain.
What is great about Spain is that buying real estate allows for obtaining a residence permit. The minimum property investment required is €500,000, or £420,000.
Apart from real estate, investors can choose from these options:
- opening a deposit in a Spanish bank for €1,000,000, or £840,000;
- purchasing of shares of Spanish companies or units of investment funds for €1,000,000, or £840,000;
- buying of government bonds for €2,000,000, or £1,680,000;
- investing in a Spanish business.
Madrid, the capital of Spain, is one of the top choices for British expats. Other popular destinations are Barcelona, Seville, Bilbao, and Valencia
Portugal offers obtaining one of the easiest residence permits in Europe, though it does not offer real estate as an investment option. Instead, applicants may choose from the following:
- purchase of investment fund units — €500,000, or £420,000;
- supporting arts and restoring cultural heritage — €250,000, or £210,000;
- investment in research activities — €500,000, or £420,000;
- investment in a business — €500,000, or £420,000;
- opening of companies with the creation of 10 jobs.
A key benefit of the Portugal Golden Visa is the potential to obtain a Portuguese passport in five years without a residency requirement. Portugal and the UK both allow dual citizenship, enabling holders to enjoy the advantages of two passports. Portuguese citizens, for instance, can live indefinitely in any EU country, a privilege Britons lost after Brexit.
Both Portugal and Spain can be appealing to Britons due to their pleasant climate and close access to the sea. For example, the number of sunny hours in Spanish and Portuguese capitals is almost two times more than in the British capital: 2,800 against 1,600 hours per year.
These countries also have a lower cost of living. While a single person needs approximately €820 (£688) per month in the UK, in Spain and Portugal, €600 (£540) and €560 (£470), respectively, would be enough.
Are there countries that offer residence by purchase of real estate besides Spain?
Yes. Some of them are Hungary and Greece.
Hungary. From January 1st, 2025, Hungary will allow investors to obtain residency by purchasing real estate for €500,000 (£420,000). Until then, options include investing €250,000 (£210,000) in real estate funds or donating €1,000,000 (£840,000) to an institution of higher learning.
Hungarian residence permits are granted for 10 years, offering UK citizens long-term stability without the need to renew every two to three years as in Portugal or Spain.
Living in Hungary is much more affordable than in the UK. A single person needs around €520 (£437) monthly in Hungary, compared to €820 (£688) in the UK, with rental prices averaging 63% lower in Hungary.
Hungary’s central location in Europe makes travel within the region easy. Residents can drive or take a bus to many Schengen Area countries, while UK citizens typically need to fly.
Greece is another country that grants residence permits by purchase of real estate. The minimum required sum is €250,000 (£210,000). Investors may purchase residential or commercial real estate as well as one or multiple properties.
There are also other investment options, such as opening deposits, investing in a business, or buying bonds.
UK citizens with tax residency in Greece may benefit from a favourable tax regime, paying a flat tax of €100,000 (£84,000) per annum on global income.
Greece enjoys a warm climate year-round, with temperatures rarely dropping below 0°C. The country has access to the Aegean, Ionian, and Mediterranean Seas, with swim-friendly water temperatures from May to November.
So, investors usually obtain temporary residence permits, don’t they?
Many investors obtain temporary residence permits, but countries like Malta and Cyprus offer permanent residence. This grants UK citizens lifelong status, eliminating the need to reapply for permit renewals.
Malta Permanent Residence Programme requires a minimum investment of €150,000 (£126,000) and fulfilment of several conditions at once:
- rent or buy real estate — a minimum of €10,000 per year for rental, or a minimum of €300,000 for purchase;
- pay an administrative fee — €40,000 (£33,600);
- pay a state fee — €58,000 (£48,700) if renting real estate or €28,000 (£23,500) if buying one;
- make a charitable donation — €2,000 (£1,680).
Malta is the only European country on this list with English as an official language, making it easy for UK citizens to adapt. English-speaking schools are also widely available.
Malta is safer than the UK, with lower rates of violent and non-violent crime, and is known for being LGBTQ+ friendly.
Cyprus grants permanent residence to investors who contribute €300,000 (£250,000) to the country’s economy. Applicants can choose from the following options:
- residential real estate;
- commercial real estate;
- shares of Cypriot companies;
- investment fund units.
Cyprus has attractive tax rates. For example, corporate tax is as low as 12.5%, while in the UK it is 19 to 25%. There are also no taxes on global income and inheritance in Cyprus.
Permanent residents of Cyprus or Malta are eligible for citizenship after five years of residence. These countries, as EU members, allow their citizens the right to live in any EU country indefinitely.
Both Malta and Cyprus enjoy warm climates, with abundant sunshine and year-round temperatures above 0°C.
What about countries with residence by investment outside Europe, if any?
The USA and UAE offer two of the most appealing residency by investment programs.
The USA offers the EB-5 visa for investors, requiring a minimum investment of $800,000 (£618,000) in a commercial enterprise within a Targeted Employment Area. For businesses outside this area, the investment requirement increases to $1,050,000 (£810,510). Additionally, applicants must create at least 10 jobs for skilled local workers.
The EB-5 visa is initially valid for two years and can be extended. After five years of residence, visa holders may apply for US citizenship. The program also allows investors to bring their families.
One of the most obvious advantages is English as an official language. UK citizens do not need to learn any foreign languages to feel comfortable during their residency.
The USA is home to renowned universities, including MIT, Harvard, and Stanford, whose graduates often secure high-paying jobs.
In terms of climate, regions like California and Florida offer warm, sunny weather year-round, with coastal access for beach holidays and outdoor activities.
Scottsdale, Arizona, is regarded as the best city for small businesses, followed by Miami, Atlanta, and Orlando
The UAE offers residence permits for real estate investment with options for 2- and 10-year visas. To obtain a 2-year visa, investors must purchase property worth at least AED 750,000 (£157,300). For a 10-year visa, the minimum required investment is AED 2,000,000 (£419,000).
UK citizens with UAE residence permits can benefit from the taxation system, as the country does not tax income, capital gains, inheritance, gifts, and properties. The corporate rate is low and is fixed at 9%. This tax environment is attractive to UK citizens looking to establish businesses abroad.
The UAE is known for its top-tier healthcare services, attracting many medical tourists. UAE clinics are equipped with modern technology, staffed by English-speaking professionals from around the world, and offer high-quality care.
Which country’s residence would you recommend?
It is hard to say which country is the best, as everything depends on the investor’s needs. But in some cases, some countries might be more suitable and convenient than others.
European Union countries. For UK citizens wanting to regain EU advantages lost after Brexit, countries like Portugal and Cyprus offer appealing options, including some of the fastest pathways to EU citizenship.
Malta and Cyprus grant permanent residency, sparing applicants from the hassle of frequent renewals. This suits those seeking a stable, lifelong residency status.
Hungary offers an affordable entry to EU residency with business opportunities in Central Europe. The country’s flat tax rates on personal and corporate income are attractive, making it ideal for frequent entrepreneurs.
Greece and Spain are suitable for real estate-focused investors, as they provide residency through investment in dynamic property markets, supported by strong tourism and growth potential.
Portugal, Spain, Malta, or Cyprus can be appealing to UK citizens tired of their home country’s climate. They stand out for their enjoyable summer, mild winters and many sunny days.
The USA is ideal for investors interested in expanding business in a large, diverse market or accessing premier educational and healthcare institutions.
The UAE appeals to those seeking a tax-free environment with a luxurious lifestyle. Dubai and Abu Dhabi offer business-friendly infrastructure and a vibrant, international setting.
How to contact Immigrant Invest
With nearly 20 years of experience, Immigrant Invest specialises in immigration. A team of experts assists high-net-worth individuals worldwide in securing residency by investment. Immigrant Invest advises applicants on the best options, clarifies all requirements, and provides full guidance throughout the residence permit process.
Contact Immigrant Invest to book a consultation and take the first step toward your residency by investment.
