As global mobility becomes increasingly desirable, more individuals are seeking to secure residency in foreign countries through real estate investment. Residency-by-investment (RBI) programs have surged in popularity for offering individuals and families a legal pathway to live, work, and study in another country, often with minimal residency requirements.
However, not all investors have liquid capital readily available to fund large real estate purchases. This raises an important question: Can you use financing—such as loans or mortgages—to purchase qualifying real estate and still be eligible for residency?
The answer is nuanced. Some countries allow loan-backed real estate investments under specific conditions, while others require fully unencumbered ownership. In this article, we explore which countries accept loan-backed real estate for residency purposes, the structure of such financing, and what investors should watch out for.
Understanding the Basics
Most RBI programs require a minimum real estate investment (e.g., €250,000, €500,000) in government-approved properties. The primary goal is to stimulate the local economy and real estate market. Governments often stipulate that the property must be fully paid to ensure a real capital injection into the country.
However, certain jurisdictions offer flexibility by allowing a portion of the investment to be financed, typically through local banks or under secured arrangements.
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Countries That Allow Loan-Backed Real Estate for Residency
1. Portugal
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Minimum Investment: €280,000 – €500,000 (depending on location and property type)
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Financing Allowed? ✅ Yes, partially
Portugal’s Golden Visa program allows investors to finance part of the real estate investment, but the minimum investment threshold must be met from the investor’s own funds. That is, the qualifying €500,000 must be equity—not borrowed capital secured against the property itself.
However, additional financing (above the minimum) can come through a mortgage. Mortgages from outside Portugal are generally not accepted, while local financing is permitted for the excess portion.
If you need an explanation on writing your CV, Cover Letter and Email Template or help applying speak to Happy Face
2. Greece
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Minimum Investment: €250,000 (recently increased to €500,000 in certain zones)
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Financing Allowed? ❌ Generally no
Greece requires the property to be fully paid in cash, with proof of foreign-sourced funds transferred through a Greek bank. This excludes mortgage financing, particularly from Greek banks, for the minimum investment amount.
That said, financing may be used for any amount exceeding the minimum, provided the core requirement is met with equity.
3. Spain
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Minimum Investment: €500,000
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Financing Allowed? ✅ Yes, partially
Spain permits investors to use mortgage financing for the portion of the investment exceeding €500,000. The initial €500,000 must be mortgage-free and sourced from the investor’s funds. Spanish banks are often willing to finance amounts above that limit, making Spain more flexible for high-value investors.
4. Turkey
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Minimum Investment: $400,000
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Financing Allowed? ✅ Yes, with restrictions
Turkey allows the use of mortgage financing for property purchases under its citizenship-by-investment program. However, the net value of the property (after deducting loan liabilities) must still meet the $400,000 minimum. The loan must not be secured against the property used for the investment.
Foreigners can obtain mortgages in Turkey through select banks, but it often requires a solid credit profile and local representation.
If you need an explanation on writing your CV, Cover Letter and Email Template or help applying speak to Happy Face
5. United Arab Emirates (UAE)
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Minimum Investment: AED 2 million (approx. $545,000)
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Financing Allowed? ✅ Yes
The UAE’s Dubai Golden Visa and other investor visa schemes permit real estate purchases via local mortgage financing. However, the property must be at least 50% paid off to be eligible for the long-term visa. In practice, this means a 50% down payment is typically required.
Dubai’s dynamic mortgage market offers favorable terms for foreign investors, making it one of the more loan-friendly residency destinations.
Considerations Before Using Loans
While financing makes property investment more accessible, there are key considerations:
1. Loan Source Matters
Many programs require that the qualifying investment be made without liens or encumbrances. Loans secured on other properties or assets (outside the country) may be acceptable, while mortgages on the qualifying property often are not.
2. Residency May Be Revoked
If you default on a loan and the property is repossessed, your residency status could be at risk, especially if the value dips below the qualifying threshold.
3. Interest and Currency Risks
Foreign currency loans may expose you to exchange rate fluctuations and higher interest rates.
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4. Due Diligence and Approval
Governments typically assess the source of funds, even when financing is involved. You must prove the legal origin of both the down payment and the financing.
Loan-backed real estate investment for residency is possible—but only in specific countries and under clearly defined rules. Spain, Portugal, Turkey, and the UAE provide varying degrees of flexibility, while others like Greece maintain stricter cash-based policies.
Before choosing this path, it’s crucial to work with licensed immigration consultants and legal advisors who understand the regulatory framework and can help structure your investment properly. With the right strategy, financing can unlock access to residency and even citizenship, allowing investors to diversify their lifestyle, assets, and global footprint.
If you need an explanation on writing your CV, Cover Letter and Email Template or help applying speak to Happy Face
