Portuguese Citizenship by Naturalization: Benefits and Legal Nuances

Real estate outside of one’s home country is no longer exotic and increasingly becomes a rational tool for future planning. The growth of tourism, international mobility, digital economy, and access to remote markets contribute to a surge in interest in foreign assets. Owning an apartment, house, or commercial property in another country not only opens doors to new legal and financial opportunities but also protects capital from local risks.

Each year, the number of transactions involving foreign real estate is increasing: according to Tranio and Knight Frank, in 2024, the share of Russian investors in the real estate markets of Portugal and Turkey increased by 34%, in the UAE by 22%, and in Spain by 18%. These figures indicate globalization of investments and a growing awareness in asset selection. Why buy real estate abroad? The answer lies in the cold logic of benefit, diversification, and calculation.

Why Buy Real Estate Abroad: Capital Security and Protection Against Inflation

Real estate in a stable jurisdiction acts as a counterbalance to financial shocks. The Eurozone, the Emirates, the UK, Canada, and Portugal provide predictable inflation policies, transparent tax systems, and protection of property rights. Purchasing apartments in Lisbon, Vancouver, or Dubai allows not only to preserve funds but also to fix them in a stable currency.

Real estate market analysis in Portugal shows that from 2015 to 2023, the price per square meter increased from 1,150 to 2,930 euros, especially in the areas of Lisbon, Algarve, and Cascais. The annual inflation remained at 5.2% (2023), while the property value increased by over 9%. These indicators answer the question of why to buy real estate abroad — to avoid depreciation and grow capital.

Residential Base for Personal Use

A home by the sea or an apartment in a European capital creates a stable foundation for living, leisure, and business activities. Seasonal residence, migration plans, rental opportunities, and personal use all contribute to a versatile asset. In Portugal, a country with 300 sunny days a year, buying an apartment in the south in the Albufeira area for 240,000 euros provides not only accommodation but also access to a Golden Visa or D7 program.

In Spain, buyers acquire apartments in Barcelona with an area of 70–80 m² at an average price of 280,000–350,000 euros, including finishing, parking, and a pool in the complex. Real estate in Istanbul, especially in the Kadikoy, Sisli, and Besiktas areas, is popular among investors due to prices of 2,100–2,700 $/m² and high liquidity.

Right to Residency, Residence Permit, and Citizenship

Why buy real estate abroad? One of the key answers is relocation, residency, passport. Purchasing a property grants access to migration programs: in Portugal, the D8 program is available for remote specialists and entrepreneurs, in Turkey and the UAE — residency for investments, and in Malta — citizenship through investment.

In 2024, over 1,750 foreigners obtained residency in Portugal through D7, investing from 100,000 to 280,000 euros in real estate. Buying property in Cyprus worth 300,000 euros grants permanent residency for the whole family. In the Emirates, the long-term residency program (Golden Visa for 10 years) starts from 545,000 US dollars when purchasing property in Dubai.

Passive Income Passport: Why Buy Real Estate Abroad

Foreign real estate brings stable rental income — especially in regions with developed tourism, high demand, and limited supply. In Barcelona, Malaga, Lisbon, or in tourist areas of Dubai, the average long-term rental yield ranges from 4.5 to 6% annually. Short-term rentals on Airbnb and Booking can increase this figure to 8–9%, with proper property management.

In Portugal, properties are rented for 900–1,400 euros/month for a two-bedroom apartment in Lisbon for a period of 6 months. In Dubai, when buying an apartment in Jumeirah Village Circle (JVC) for 175,000 dollars, the monthly amount ranges from 1,200 to 1,450 dollars, providing a net yield of 6.1–6.5% with minimal maintenance costs.

Diversification and Currency Shield

Acquiring foreign real estate creates a currency balance in an investment portfolio. The exchange rate of the euro, dollar, dirham, and pound stabilizes risks associated with the devaluation of the national currency. Properties in Europe and the UAE act as insurance against local economic turbulence.

Example: an investor from Russia purchased two properties — an apartment in Lisbon (260,000 euros) and a studio in Dubai (180,000 dollars). The income in euros covers the costs of a child’s education in the EU, while the profit in dollars serves as dividends to a personal account. Thus, the purpose of buying real estate abroad is to create a global currency shield and maintain personal financial horizons.

Transaction Transparency and Tax Planning

In EU countries, Turkey, and the UAE, property purchases are accompanied by certified lawyers, notaries, and state registries. Property registration takes from 7 to 25 working days. Most countries have signed agreements to avoid double taxation with Russia, Kazakhstan, Ukraine, Belarus, allowing for a transparent and legal income management model.

Example of one-time expenses when buying an apartment in Algarve (Portugal): property purchase tax (IMT) — 3,500 €, stamp duty — 1,300 €, lawyer fees — 1,500 €, registration — 250 €. Everything is accurately accounted for and processed within a month. Rental income is taxed at a fixed rate of 28%, but can be reduced with proper declaration of maintenance and repair expenses.

Why Buy Real Estate Abroad: Live, Rent Out, Resell

Real estate in another country can easily be adapted for various purposes. In changing circumstances, the property can be sold at a profit, rented out, gifted, or used as a means of payment for education, medical treatment, or relocation. Real estate in Portugal has increased in price by 83% since 2014. According to DLD data, properties in Dubai have appreciated by 31% in the last two years, especially in the Business Bay and Marina areas.

One investor purchased an apartment in Porto in 2020 for 145,000 €. In 2024, the property was valued at 197,000 €, and the rent was bringing in 1,100 €/month. After 4 years — +52,800 € to the value plus 52,800 € of net rental income, without considering the euro exchange rate growth.

When is it particularly advantageous to invest:

1. When having capital in an unstable currency that needs protection.
2. When preparing for emigration, changing tax residency, or starting a business.
3. When creating an investment portfolio with a share of currency assets.
4. When desiring to earn income in a stable currency without involvement in operational management.
5. When needing to provide a child with education in the EU and housing abroad.
6. When transitioning to partial or full remote work with a jurisdiction with low taxes.
7. When aiming to safeguard assets from sanction risks and local restrictions.
8. When diversifying risk by acquiring multiple properties in different countries.

Conclusion

Why buy real estate abroad — for control, flexibility, and freedom. Owning an asset in another country provides not just income but mobility, protection, and confidence in the future. This tool operates around the clock, regardless of the ruble exchange rate, news, and borders. It forms an alternative infrastructure for life, leisure, and capital, serving as the foundation of personal financial strategy.

“Flowering Island” of Portugal represents an ideal place to live and holiday, thanks to its comfortable climate, low taxation and high quality of services. Many foreign nationals from all over the world are considering moving to Madeira in order to obtain permanent residence (Permanent Residence) or residence permit, benefit from all the advantages of residence, favourable tax incentives and enjoy a comfortable life surrounded by beautiful natural scenery.

The pros of living in Madeira: what attracts people to live in Madeira

Madeira attracts attention not only for its nature, but also for its developed infrastructure, mild climate and advantages for people working in technology and business. The island has become a real find for digital nomads, retirees and families looking for a better place to live. The stable climate as well as favourable conditions for business and investment attract more and more people who want to start a new life in Europe.

Climate and nature

The climate on the island is one of the most attractive factors for those looking for the perfect place to live. With mild temperatures all year round, where winters are not too cold and summers are moderately hot, the location provides comfortable living conditions. Madeira is immersed in greenery, making it an ideal destination for nature lovers, hikers and outdoor enthusiasts. Especially appreciated by tourists and locals are phenomena such as the Laurel Forests, a UNESCO World Heritage Site, as well as picturesque volcanic beaches and high mountain trails.

Tax benefits and immigration programmes: attractive conditions for relocation

Madeira represents a part of Portugal, but at the same time has peculiarities in the tax system that make the island attractive to investors and residents interested in favourable tax benefits. The territory actively attracts foreign citizens, offering opportunities for residence permits and permanent residence. One of the most popular programmes is the Golden Visa (Golden Visa), which allows you to invest in real estate or set up a business on the island and, at the same time, receive the right to a long-term stay in the country.

Property for living and investment in Madeira: prices, options, pros for investors

The property market in Madeira is well worth a look. There is a wide range of accommodation, from traditional Maltese houses to modern condominiums, giving you the opportunity to choose from a variety of options depending on your preferences and finances. Property prices here are considerably lower than in most European capitals. The average cost of housing varies from €1,500 to €2,500 per square metre depending on the location. For example, flats in the centre of Funchal (the island’s capital) or near the beaches tend to be more expensive. At the same time, investing in housing outside the city limits or in less popular areas can be profitable, such properties promise good prospects for value growth in the future.

Buying property in Madeira is not only an opportunity to improve your quality of life, but also a profitable investment. Many foreign investors choose the location due to its strategic location, favourable rental conditions and stable growth in property prices.

Digital nomads and remote working in Madeira

Madeira is becoming a popular destination for digital nomads thanks to its excellent climate, internet availability and unique infrastructure for remote working. The island offers not only beautiful scenery, but also co-working spaces, cafes and places to socialise, making life here convenient for professionals working in technology, marketing and business.

Linked to this is the creation of a special programme for digital nomads and freelancers, offering special benefits and support for those who choose to live and work in Madeira. The project includes tax advantages and support for start-ups, as well as facilities for setting up a business in certain neighbourhoods.

Moving to Madeira in 2025: what you need to know

In recent years, moving to Madeira has become popular with people seeking a quality of life and favourable working conditions. The island is a great option for those who want to live in Europe without facing the high cost of living in cities such as Lisbon or Barcelona. Moving to Madeira in 2025 will be relevant not only for investors, but also for people who want a fresh start.

But, as in any other place, life here has its nuances. For example, the limited availability of some goods and services can be a challenge for those who are used to a large assortment in large metropolises. You also have to take into account the high cost of certain services, which can affect the overall budget. But for people who are oriented towards a quiet life in a picturesque location with excellent nature and low taxes, Madeira will be an ideal choice.

The main advantages of living in Madeira:

1. Beautiful year round climate, ideal for those who don’t want to endure harsh winters.
2. Opportunity to take advantage of tax incentives and create a business with minimal taxes.
3. Great environment for remote work and freelancers.
4. Developed infrastructure for a comfortable life: high quality medical services, convenient transport links, well-developed network of shops and restaurants.

The main disadvantages of living in Madeira:

1. Some limited opportunities for professionals in specific fields.
2. Higher cost of living compared to other Portuguese regions.

Conclusion

Madeira represents an excellent choice for those who want to enjoy the perks of comfortable living, warm climate, convenient infrastructure and favourable tax incentives. Moving to the island will be a favourable decision for digital nomads, investors and those who want to travel to the most picturesque corner of Europe. There are plenty of opportunities for personal and professional growth in an atmosphere of nature, sunshine and tranquillity.