People are starting to look closely for investment opportunities, regardless of the pandemic status. Placing their quality of life at the forefront of their decision making, some of these investments will inevitably mean relocation to a new home – and potentially even a new country. In this five-part series we’ll explore destinations around the world with benefits like residency and citizenship by investment programs, tax incentives, and more, as well as hear from local experts throughout the Sotheby’s International Realty® brand network along the way.
Known officially as the Principality of Andorra and for its ranking as 5th Healthiest Country in the World, nestled between Spain and France, Andorra also boasts a close relationship with its natural surroundings – 90% of which comprises mountains, forests, rivers, and lakes. With a minimum investment of €400,000 in real estate required as a pathway to citizenship along with low tax rates, Andorra is rapidly becoming a sought after destination for those seeking to relocate.
“Investing in the Principality of Andorra is very attractive because it has no industry,” says Andorra Sotheby’s International Realty CEO, Narcís Socías. “We are surrounded by nature with great valleys and lakes to enjoy year-round. Taxation is very low – a maximum of 10% – and it is one of the safest countries in the world.”
With the Atlantic Ocean to its west, and Spain to its east, the coastal country of Portugal offers an average of 300 days of sunshine a year, nearly 1,200 miles of coastline, and in 2019 its capital of Lisbon was voted the Best European Investment Destination by PWC. Here, a €500,000 real estate investment sets you on the the path to citizenship with free access to all 26 Schengen countries, and along with top Golden Visa applicants from China, Brazil, and Turkey – as a non-habitual resident, enjoy a flat 20% income tax and 0% tax on foreign sources of income.
“This is a great time to invest in Portugal,” says Miguel Poisson, CEO of Portugal Sotheby’s International Realty. “Despite the best efforts of 2020, this country maintains its distinguishing features: our weather, being recognized as the 3rd safest country in the world, access to five international airports, and attractive tax benefits such as our Golden Visa.”
A storied country known for welcoming expat communities, Spain offers investors a mild climate, vibrant culture, world-class cuisine, and the Balearic Islands – a destination within a destination that continues to grow in popularity with locals and foreign investors alike as a burgeoning second-home market. A veritable renter’s paradise, Spain stands as the 3rd most popular tourist destination in the world, with approximately 81 million visitors in 2019. Much like neighboring Portugal, citizenship through real estate investment requires a minimum spend of €500,000 and comes with free access to all 26 Schengen countries.
“Focusing on quality of life has never been more important than it is now,” says Alejandra Vanoli, managing director of VIVA Sotheby’s International Realty in Spain. “Our country offers a strong healthcare system and [arguably] perfect climate. Spain is a popular holiday and second home destination for many investors – one where residential properties deliver robust rental yields. This is especially true in places like Mallorca and Ibiza, where investors can nearly guarantee returns.”