How Seven Cities Behind the Big Golden Visas Score as Pure Property

The Global Property Scoreboard (GPS) evaluates the investment merits of residential markets independently of any golden‑visa residence permits. By scoring seven cities that have been linked to golden‑visa programs, the GPS reveals a ranking that often runs counter to the marketing narratives surrounding those visas.

GPS Overview

• Scoring categories: Property fundamentals (30 %), demand drivers (20 %), and six other factors—costs, access, governance, macro, resilience (each 10 %).
• Foreign‑ownership penalty: ‑3 points for light restrictions, ‑5 for moderate, and ‑8 for heavy limits on foreign ownership.
• Coverage: 146 cities worldwide; the seven highlighted are the most frequently cited in golden‑visa discussions.

City Rankings (total GPS score)

Abu Dhabi

• Score breakdown: Property +10, Demand +2, Access +8, Costs +7, Governance +2, Resilience ‑1, Macro +5.
• Yield & price: Gross rental yield ≈ 5.7 % (city centre); prime prices ≈ US$5,700 / m² (investment zones Saadiyat, Yas, Al Reem range US$4,000‑7,000 / m²).
• Tax environment: No personal income tax, no annual property tax, no capital‑gains tax.
• Transaction costs: Round‑trip costs ≈ 6 % (lowest among the seven).
• Visa link: UAE Golden Visa – ten‑year renewable permit for property ≥ AED 2 million (≈ US$545,000); freehold only in designated investment zones.
• Risks: Oil‑price sensitivity and regional conflict exposure (reflected in resilience score).

Dubai

• Score breakdown: Property +3, Demand +3, Access +8, Costs +7, Governance +2, Resilience ‑4, Macro +5.
• Yield & price: Gross yields ≈ 7 % for apartments (early 2026), ≈ 5 % for villas; prime prices not specified but implied to be higher than Abu Dhabi.
• Transaction costs: Around 8 % (including a 4 % Dubai Land Department fee).
• Visa link: Same UAE Golden Visa criteria as Abu Dhabi.
• Risks: Heavy off‑plan sales (≈ 63 % of 2024 transactions) and a large pipeline through 2027; weakest resilience score among the group.

Valletta

• Score breakdown: Property +1, Access +8, Costs +7, Governance +2, Resilience +1, Macro +3.
• Yield & price: Gross yield ≈ 5.3 %; prime prices ≈ €5,000 / m²; prices have risen 60‑80 % over the past decade.
• Tax environment: Rental income tax 15 % withholding; property transfer tax 8 % (acts as low‑rate CGT); no annual property tax.
• Visa link: Malta Permanent Residence Programme – property ≥ €375,000 (or rent €14,000 / yr) plus a government contribution; non‑EU buyers need an Acquisition of Immovable Property (AIP) permit.
• Risks: Land scarcity and high population density keep prices elevated; foreign‑ownership penalty applies.

Limassol

• Score breakdown: Property +1, Demand +2, Access +5, Costs 0, Governance +3, Resilience ‑1, Macro ‑2.
• Yield & price: Gross yield ≈ 6 %; price‑to‑rent ratio ≈ 17; prime prices not detailed but mid‑market districts are below luxury seafront tier.
• Tax environment: No annual property tax; 20 % CGT on gains; round‑trip costs ≈ 8‑14 %.
• Visa link: Cyprus Residence‑by‑Investment – property ≥ €300,000 plus €50,000 annual foreign income; program provides permanent residency (no Schengen rights) after the 2020 closure of the citizenship‑by‑investment scheme.
• Risks: Heavy luxury‑tower pipeline, isolated oil‑dependent power grid, and reduced access score.

Madrid

• Score breakdown: Property ‑1, Demand ‑7, Access +10, Costs ‑7, Governance +6, Resilience +7, Macro ‑2.
• Yield & price: Gross yield ≈ 3.9 % (city centre); ten‑year nominal price gain ≈ 31 %; prime districts (Salamanca, Chamberí) retain value.
• Tax environment: Higher withholding tax on rental income for non‑EU landlords; round‑trip transaction costs 10‑20 %.
• Visa status: Spain’s golden‑visa program closed to new applications on 3 April 2025; existing permits remain valid, but property purchases now lack any residence‑permit attachment.
• Risks: Lengthy court processes (≥ 18 months) for tenant eviction cases; no visa benefit to offset low yields or high costs.

Lisbon

• Score breakdown: Property ‑10, Demand 0, Access +10, Costs ‑6, Governance +5, Resilience +7, Macro ‑2.
• Yield & price: Gross yield ≈ 4.6 % (city centre); prime prices €6,000‑7,000 / m²; prices have more than doubled since 2015.
• Tax environment: Rental income tax ≈ 28 %; round‑trip transaction costs 12‑17 % (including IMT, stamp duty, fees).
• Visa status: Portugal removed real‑estate from its Golden Visa in 2023; the program now relies on investment funds and other routes; the Non‑Habitual Resident tax regime is closed to new entrants.
• Risks: Political uncertainty over short‑term‑rental licensing and potential future housing‑policy changes.

Athens

• Score breakdown: Property ‑3, Demand ‑3, Access +8, Costs 0, Governance ‑1, Resilience +4, Macro ‑2.
• Yield & price: Gross yield ≈ 3.9 % (city centre); prime prices US$4,000‑5,000 / m²; price growth > 50 % over the past decade and > 80 % since the 2017 bottom.
• Tax environment: No capital‑gains tax on property (suspended); other taxes not specified.
• Visa link: Greece Golden Visa – property investment ≥ €800,000 (increase effective 2024); qualifying properties cannot be used for short‑term rentals.
• Risks: Title‑risk due to incomplete cadastre mapping and informal building additions; oil‑dependent electricity grid; lowest governance score among the seven.

Interpreting the Rankings

• Asset vs. permit: The GPS isolates the real‑estate component; it does not assess the value of the residence permit, mobility benefits, or lifestyle factors.
• Foreign‑ownership penalties: Cities that restrict where non‑residents can buy (e.g., Abu Dhabi, Dubai, Valletta) are penalised in the score, reflecting additional transaction friction.
• Program status matters: Madrid and Lisbon no longer attach a residence permit to property purchases, so their low scores must be judged purely on investment fundamentals. Athens, despite a low score, still offers a five‑year Schengen‑access residence permit, which may justify a thinner yield for some buyers.

Practical Takeaway

When evaluating a golden‑visa property purchase, separate the two elements:

1. Residence permit – consider visa cost, stay requirements, mobility, and any path to citizenship.
2. Real‑estate asset – assess yields, price trends, transaction costs, tax regime, and market liquidity as reflected in the GPS.

For markets where the permit is no longer bundled (Madrid, Lisbon), the decision rests entirely on the property fundamentals. In jurisdictions that still provide a residence right (e.g., Athens, Abu Dhabi, Dubai, Valletta, Limassol), buyers must weigh the permit’s strategic value against the investment profile of the underlying real estate.

Source article: www.imidaily.com