Can you lose your residence permit if you sell real estate? Rules vary by country.

In the modern globalized world, investments in foreign real estate for the purpose of obtaining residency continue to be one of the most sought-after and transparent tools for international migration. This approach provides the investor and their family members not only with the right to long-term residence in the chosen country but also grants access to prestigious education, quality healthcare, and visa-free travel to certain countries. However, after several years of property ownership, many investors face a logical question: will their residency status be preserved upon the disposal of the asset? The answer to this question requires thorough analysis, as the legal norms of different countries demonstrate fundamental differences in their approach to this situation.

The Legal Nature of the Connection Between Residency and Property Rights

When obtaining residency through real estate investment, an implicit agreement is concluded between the applicant and the state: you receive the right to reside in exchange for specific financial injections into the country's economy. This agreement has its own conditions:

• Initial registration. The residency permit is issued for a specific period, usually from 1 to 5 years, subject to the submission of documents confirming the right of ownership.
• Validity period and renewal. To renew the status, it is almost always required that the real estate remains in your ownership. Verification of this fact is a standard procedure with each renewal of the residency permit.
• Main obligation. The investor's primary obligation is the continuous ownership of the real estate object throughout the entire validity period of the residence permit.

From a legal standpoint, residency through real estate can be considered a conditional right – its validity is directly dependent on the investor fulfilling certain conditions. If these conditions are violated, the state reserves the right to annul the residency status. This is a fundamental difference from other types of residency permits, for example, those obtained through employment or family reunification.

Critical Situations Leading to the Annulment of Residency

The loss of residency becomes a consequence of systematic violation of the conditions established by the program, and not of the property disposal transaction itself. The migration services of most countries apply a comprehensive approach when assessing such cases, considering not only the fact of the sale but also the circumstances accompanying the transaction.

Several scenarios are among the most common reasons for losing status.

• Disposal of the property before the expiration of the current residency permit or before obtaining permanent residency – this is the most obvious violation of the program's conditions.
• Establishing a trust management agreement or gifting, leading to the loss of actual control over the asset, are also considered serious violations.
• Any transactions recorded in the property rights registry and changing the owner's data automatically become known to the migration authorities.

The "quarantine period" existing in many jurisdictions deserves special attention – this is the minimum period of property ownership, premature sale of which guaranteed leads to the loss of status. This period can vary from 2 to 5 years depending on the specific country. For example, in Greece, this period is only 2 years.

It is important to note that some countries allow exceptions if there are valid reasons for the sale, such as force majeure circumstances or serious health problems. However, in each such case, the decision is made individually by the migration authorities.

Comparative Analysis of International Practices

The rules vary significantly, so the choice of jurisdiction is of key importance.

• Greece (Golden Visa): you will lose it. The residency permit is valid only as long as you own the real estate. Selling the property leads to the loss of the right to renew the 'golden visa' for the investor and their family.
• Turkey (Citizenship): In the case of residency, you will lose the status. In the case of citizenship, the following rules apply: after obtaining citizenship (which occurs after fulfilling all conditions, including a 3-year ban on sale) you become a full-fledged citizen. The passport cannot be revoked due to the subsequent sale of real estate.
• Cyprus (Permanent Residency): you will lose it. The permanent residence permit through the accelerated procedure is issued subject to the retention of the real estate investment. Upon sale of the property, the permanent residency is annulled.
• UAE (Dubai): you will lose it. The residence permit in Dubai, obtained through the purchase of real estate, is directly tied to the ownership of this asset. Upon sale, the residency is annulled, and you will have to leave the country if you do not have another legal basis for stay.

Strategic Recommendations for Investors

To minimize risks when changing an investment portfolio, it is recommended to develop a comprehensive strategy that takes into account both the current and prospective needs of the investor. Experience shows that successfully preserving residency status requires careful planning and a professional approach.

Thorough study of migration legislation prior to the transaction is of paramount importance. It is not enough to simply know the main provisions of the program – it is important to understand all the nuances and pitfalls that may arise when selling real estate. It is recommended to pay special attention to aspects such as minimum holding periods, the possibility of reinvestment, and the procedure for notifying the migration authorities.

Choosing programs with the possibility of subsequent reinvestment is a key factor for investors planning to sell real estate in the future. Programs such as the Portuguese "golden visa" allow the retention of residency status even after the sale of the initial investment object. However, it is important to consider that reinvestment conditions may change, so it is necessary to regularly monitor up-to-date information.

Compliance with the property holding periods until the status renewal is a fundamental requirement, the violation of which almost guaranteed leads to the loss of residency. It is recommended not only to comply with the legally established minimum periods but also to exceed them if possible – this reduces risks during checks by the migration authorities.

Considering alternative investment options within the framework of the current program can be an optimal solution for investors wishing to diversify their investments without losing their residency status. Some countries allow a transition from real estate investments to other types of investments – for example, government bonds or business projects.

The issue of tax consequences of the sale of real estate deserves special attention. In many countries, the sale of an object acquired under an investment program can trigger significant tax liabilities. It is recommended to conduct tax planning in advance and assess all financial consequences of the transaction.

Modern migration programs offer various mechanisms for preserving residency when changing the structure of assets. The key success factor is advance planning and professional legal support, allowing to combine financial flexibility with the preservation of acquired migration benefits. Experience shows that investors who approach the issue of selling real estate systematically and thoughtfully in most cases successfully preserve their residency status and continue to enjoy all the benefits of living abroad.

It is important to remember that migration legislation is constantly changing, and the conditions relevant today may change tomorrow. Therefore, it is recommended to regularly monitor changes in the legislation of the countries whose programs interest you and promptly adapt your strategy to new realities.