Yes, You Can Still Get EU Citizenship! This is How

Summary

Cavier Kareah, the Tax Terminator, explores the growing trend of Americans seeking to relocate to Europe, driven by work visas, citizenship by descent, and favorable tax policies. Despite tighter regulations in countries like Spain, Portugal, and Italy, there are still attractive options, including Spain's digital nomad visa, Greece's real estate investment visa, and Portugal’s golden visa with investment funds. Kareah highlights tax regimes like Monaco's zero tax and Malta's residency programs. He discusses the challenges of U.S. citizenship-based taxation and emphasizes the lifestyle and financial advantages Europe offers for those willing to navigate these complexities.

Takeaways

• 😀 Record numbers of Americans are considering relocating to Europe through work visas or citizenship by descent.
• 🌍 Many Americans are drawn to European countries due to more comfortable social policies and lifestyle options.
• 🚫 Europe is tightening its borders, making it harder for Americans to relocate, with changes to citizenship and visa programs.
• 🇪🇸 Spain no longer offers a golden visa, but offers attractive passive income visas and a digital nomad visa.
• 🇵🇹 Portugal still offers a golden visa with a path to citizenship through investment in funds, though some options like real estate are now restricted.
• 🏡 Greece and Latvia provide affordable real estate investment options for golden visas, with Greece granting Schengen area access.
• 🌟 The Channel Islands, like Jersey, offer great tax benefits, including low taxes on income up to £1.25 million.
• 💡 Tax-friendly regimes in countries like Italy, Greece, and Portugal can be advantageous, with options such as lumpsum taxes or territorial taxation.
• 💰 Monaco offers zero personal income tax, making it a popular choice for high-net-worth individuals, though its residency options are more traditional.
• 🇲🇹 Malta remains a tax-efficient option for digital nomads with the TRP and GRP programs, despite the removal of its citizenship-by-investment program.

Q & A

What is the primary reason behind the increased interest from Americans in relocating to Europe?

The increase in interest is driven by factors such as political shifts in the U.S. (e.g., the Trump presidency) and the desire for a different social and economic environment, with many Americans feeling more aligned with European social policies.

What are some of the major challenges Americans face when trying to relocate to Europe?

European countries are tightening their borders, making it harder for Americans to relocate. For example, Italy has made citizenship by descent more difficult, and Spain and Portugal have either eliminated or restricted golden visa programs.

What are the benefits of relocating to Spain, and what visa options are available?

Spain offers options like the digital nomad visa and visas tied to passive income, which are attractive for retirees. The Beckham Law also provides significant tax benefits, turning Spain into a territorial tax system for about six years.

How does the golden visa system in Portugal work, and what changes have occurred recently?

Portugal's golden visa now focuses on investments in funds rather than real estate. It provides a pathway to citizenship with some minimal physical presence. However, the new NHR (Non-Habitual Resident) tax regime is more limited than it used to be.

What are the golden visa options available in Greece and Latvia, and what is the cost?

Both Greece and Latvia offer golden visa programs that require real estate investment. In Greece, the investment is around €250,000, while in Latvia, it's approximately €280,000, depending on the area of the country.

What tax benefits can one expect in the Channel Islands, specifically Jersey?

In Jersey, individuals can benefit from a favorable tax system where the first £1.25 million of income is taxed at 20%, and income exceeding that is taxed at just 1%. It’s an excellent option for high-income individuals seeking both residency and tax advantages.

How does Monaco serve as a tax haven, and what are the requirements for residency?

Monaco offers tax-free living for individuals who can meet its financial requirements, including placing money in a local bank. This makes it an attractive option for those seeking a no-tax environment, though it is more traditional and not as widely discussed today.

What is the lumpsum tax regime in Greece and Italy, and how do they compare?

Both Greece and Italy offer lumpsum tax regimes where individuals pay a fixed annual fee. In Greece, it is around €100,000, while in Italy, it is €200,000. These systems are beneficial for high-net-worth individuals seeking tax efficiency.

Why is it important for Americans to consider U.S. citizenship-based taxation when relocating to Europe?

Americans face U.S. citizenship-based taxation, meaning they must report and potentially pay taxes on their worldwide income to the IRS, regardless of where they live. This creates a unique challenge for U.S. expatriates, although some European tax regimes may still offer tax-neutral or advantageous conditions.

What is the current status of Malta's citizenship and tax residency programs, and are they still attractive options?

Malta’s fast-track citizenship program (NEIN) has been discontinued, but it still offers excellent tax residency options, including the TRP and GRP programs. These programs allow individuals to keep Malta as their tax residence with a fixed annual fee of €15,000 and favorable tax treatment for capital gains.