short on capital) benefit from
an economic perspective
and those investors seeking
a visa or passport are able to
protect their assets and/or
to have greater accessibility
to a particular market. The
criteria imposed varies with
each country not only in the
sum of investment required;
Cyprus requires a high investment of 5 million Euros, but
Spain insists that such investors
spend at least 183 days a year
on Spanish soil. Portugal, whilst
also requiring only €500,000,
demands a minimum knowledge of Portuguese and qualifying period of six years.
The appeal of these schemes
varies between nationalities.
European national “passport
shoppers” are allegedly more
likely to be driven by tax
incentives to invest in Antigua
or other offshore locations,
albeit they may be reluctant
to admit it. But for Chinese
(which nationality purportedly
accounts for 70% of the world’s
residency/citizenship visa/
passport market) and Russian
buyers, the greatest advantage
is considered to be freedom of
travel across borders. A Chinese
or Russian businessman with
frequent high value deals in
Paris or London, would no
longer have to obtain a visa
before each visit once he had a
European passport.
Whilst it’s probably fair to say
that most property investors
continue to seek destinations
in countries with relatively
388
consistent political and
economic systems, more
adventurous, nomadic investors
are prepared to move away
from the safer UK, European
and US markets when signs
of recovery and regeneration
can be spotted further afield.
According to a report highlighting potential new hotspots
in emerging markets beyond
even Brazil, India and China;
other places are emerging.
Following the end of civil war
in Sri Lanka, economic growth
and internal infrastructure is
creating a more appealing
prospect and leading to an
increased demand for, not
only affordable, but luxury
housing. Similarly, as a result of
an improvement in Pakistan’s
economy, Faisalabad, for
example has experienced an
increase in investment, development and construction.
Global real estate investment
is undoubtedly fluid and prone
to the vagaries of the politicoeconomic landscape with
buyers not only enticed by location and potential returns but
also by the lure of a passport.
Lindsay Kinnealy is Head of
International Property at law
firm Slater and Gordon.
For more information
email Lindsay.Kinnealy@
slatergordon.co.uk or
call +44 (0) 161 383 3871.
www.slatergordon.co.uk
www.theaddressmagazine.com