What is the easiest country to get permanent residency in Europe without investment?

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Commitment Based Residency: Time VS Money

If the question wording is simply ‘Easiest country to get permanent residency in Europe without investment?’

Then, the short answer is that there isn’t one!

This is because governments tend not to issue residency on a permanent basis, at least not until the foreign national has built and can prove genuine ties to the country / or a made a justifiable commitment to the country.

That said, European Governments will indeed issue temporary residency permits to those who can prove that they have sufficient means, such as Digital Nomads and Retirees who generate income coming from overseas. In fact, in 2023, more than 3.7 million first residence permits were issued in the EU to non-EU citizens.

Europe is clearly very much open to inward immigration. However, such residency permits will usually only be issued on a temporary basis, and again it is up to the foreign national to prove their commitment and ties to the country if they wish to acquire permanent residency in Europe.

Such a commitment can be made in 2 ways.

Time-Based Commitment

The general rule in the European Union is that those living in an EU country can, as legal residents apply for Permanent Residency after 5 years. However, in most cases in order to be eligible for permanent residency, one must additionally prove that they have sufficient proficiency in the local language along with a basic understanding of the countries culture and history. This can again be considered a time-based commitment as the resident will need to have to put in the effort to study the local language and culture.

Financial Commitment

Making a financial commitment in the form of a long term investment or financial contribution to an EU country through a Golden Visa Program is often the best way to reduce, or even replace the need for time-based commitments. Investors can fast-track their pathway to permanent residency and in some cases skip the process entirely.

EU Permanent Residency By Investment Programs

Cyprus and Malta both have Permanent Residency programs which allow investors to qualify for permanent residency after making a long-term investment into the country. Cyprus requires an investment of 300,000 EUR into real estate, while Malta program seeks a financial contribution to the government plus either a real estate purchase or the commitment to a long term rental contract which in both cases must be held for at least 5 years. Greece on the other hand offers permanent residency through it’s golden visa up until the investment is sold or the investor acquires citizenship. So essentially your residency in permanent as long as your financial commitment!

Pathways to Permanent Residency in Europe without investment

Since this article is focused around non-investment pathways to residency we will now explore the ways in which foreign nationals can acquire temporary residency without investment. As previously mentioned Permanent Residency can be achieved in any EU country after 5-years of residency (time commitment).

Residency through economic means

Investing into a country is of course not the only way to acquire residency, neither is the most suitable option for everybody. For this reason at Lincoln Global Partners we offer addition services such as Digital Nomad Visas and Retirement Visas.

These residency programs allow foreign nationals to acquire residency in a particularly country simply by proving that they have the funds to support themselves in the country. This allows governments to attract the wealthy and high earners to their country. These individuals are inevitably most likely to also be ‘high spenders’ and therefore contribute capital into the local econony. In most cases these residency permits are issued on a temporary basis, and are renewable every 1-2 years and y programs on the condition that applicants spend at least 6 months per year in the country.

Digital Nomad Visas

Digital Nomad Visas have taken the world by storm in recent years. When I first started travelling and working remotely over a decade ago outside of major nomad hubs like Bali or Bangkok there were very few people living this lifestyle. Fast-forward to 2024 and no matter what major city I visit in the world, if I head to a trendy cafe in the most touristy friendly districts of any major city then I will find other nomads sipping their coffees and typing away on their MacBook Pros! In fact, when we take a look a the statistics, according to Forbes the number of digital nomads globally has tripled since the start of the pandemic the researchers found.

Governments across the globe have of course noticed this trend and there are now more than 66 LINK countries in the globe fighting it out to attract high spending nomads through their flexible immigration policies. Some of these countries are even offering special tax incentives to Digital Nomads.

Retirement Visas:

Americans and Canadian Retirees are seeking out Europe as a retirement destination in increasing numbers.

Despite what we may see on the news, the vast majority of Europe is considerably relatively safe and by North American standards also affordable. You have countries like Portugal, Italy, Greece and Spain in the Mediterranean with their charming cities, beautiful beaches and good all year weather all offering residency to retirees. Retirees can also benefit from tax incentives under such programs with Greece perhaps the most attractive option with a flat rate of just 7% on pensions.

Easiest European countries to get citizenship (without investment)

Funnily enough, getting EU citizenship is often easier than getting permanent residency without the need to invest! However, this only applies to lucky individuals who happen to have ancestors from European countries.

Countries in the European Union such as Spain, Portugal, Italy, Poland, Bulgaria, and Hungary are the easiest countries to obtain European Citizenship for many since they each offer citizenship by descent programs.

Curious to know if you qualify. Contact us for more details and check out our Citizenship By Investment Descent Programs here.

When Should I invest in Europe order to get residency?

We have highlighted a number of options for those looking to secure permanent residency in Europe without an investment. However, it is important to understand that there are significant benefits to acquiring residency by investment over residency by economic means.

1. When Flexible Minimum Stay Requirements are important

Many of our clients are seeking access to the Schengen Area in Europe without needing to physically relocate to Europe on a full-time basis. Our Golden Visa programs are therefore the best option in such cases as they provide these benefits without the need to live in the European country. The Portugal Golden Visa is particulalry attractive considering that not only do you not need to live there to maintain residency but you can even qualify for citizenshipp after 5 years by spending just 7-days per year in the country.

2. You wish to access Special Tax Regimes for Investors

On the other hand, those that want to become tax resident in Europe can benefit from some exclusive tax residency programs which are only available to investors, Malta for example has the Global Tax Residency Program in which investors become tax residents but only pay taxes on funds that our remitted to Malta, while Cyprus offers a 90-day tax residency program.

3. If you wish to avoid becoming tax resident

While there are some attractive taxation schemes in Europe for both retirees and high net worth individuals for Digital Nomads and Retirees in most cases spending at least 183 days in a country will trigger tax residency and in most cases in order to maintain residency nomads will need to prove they have lived in the country for at least half the year. This can be an issue particularly for American nationals who are taxed based on their citizenship regardless of where they actually live. Each country has different tax treaties and it essential to speak to an experienced cross-country tax advisor before making such a decision. However, in the case of Golden Visa programs this issue can easily be mitigated given that investors are not required to be physically present in the country for most of the year and by staying less than 6 months one can generally avoid becoming tax resident in the likes of Portugal, Italy, Greece and Spain.

4. If Your Goal is to diversify your investment portfolio

The importance of diversifying ones investments cannot be underplayed here. There are two ways to look at Golden Visa programs. Many see their residency permit as the main draw and their investment as the bonus, allowing you to invest into a country and diversify your international investment portfolio. On the other Europe is a popular destination to invest regardless with the potential for string capital appreciation and annual returns on assets such as real estate investments and investment funds! Why not invest for the purposes of diversifying your portfolio and get your second residency in the meantime?

Conclusion: Easiest country to get permanent residency in Europe without investment

To summarise, for those that are willing to wait 5 years include: Portugal, Spain, Italy, Malta and Greece which all have Digital Nomad Visas and Retirement Visas for those that qualify. Those with European ancestry can skip the line and go straight to citizenship, while others seeking out permanent residency on an immediate basis should strongly consider investing in exchange for residency. Diversifying ones investments and residency / passport portfolios is ultimately one of the smartest decision you can take.

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