Wealthy Russians have dramatically increased their interest in buying property in Europe amid economic stagnation in the country and a new wave of deterioration of relations with the West.
According to the international consulting company Knight Frank, at the end of 2017 the number of requests from citizens of the Russian Federation on the purchase of European real estate soared at times, according to Finanz.
The most popular destination remained Cyprus, where demand jumped 4 times. In 2017, the island’s authorities have abolished the estate tax, and the year before — took a lower investment threshold for obtaining citizenship of the EU.
From now on when buying real estate, foreigners have the right to issue citizenship to the spouse, children under the age of 28 years and parents who do not pay taxes on dividends, interest on Bank deposits and rental income. Also, the Cypriot authorities have exempted buyers from paying tax on the transfer of ownership when acquiring new buildings and reduced it to “secondary” housing from 8% to 4%.
“The Russians basically acquire housing in Limassol with a budget from 1 to 5 million euros in a new building near the sea. Also, there was an active demand for office space Limassol,” says Knight Frank.
The number of requests for the purchase of real estate in Switzerland soared 3 times. The Russians were interested in residential real estate for relocation, and commercial. Most often it is an office building with tenants that appear for sale very rarely, say experts Knight Frank.
The demand for housing in Germany, France, Italy and Malta jumped twice. In Berlin, for example, Russians prefer to buy 3-5 of apartments to be built with a total budget of 1-2 million euros. In France, the popular apartment in Cannes, Italy — the property the lakes of Como and Garda.
Recovered demand for housing in London: on average, the Russians were ready to spend from 2 to 10 million pounds of property for own residence or for moving to and teaching children.