Southern European states offer property investors residency

Southern Europe's economies, ravaged by recession, are attempting to lure capital with attractive visa programmes that are already drawing attention from wealthy Chinese executives.

Portugal last year introduced a "Golden Visa" scheme that allows investors to qualify for residency if they spend €500,000 (HK$5.2 million) on property or stocks; Cyprus and Greece have similar schemes and Spain is planning one as well.

The Portuguese programme is already attracting buyers from China, drawn by bargain basement prices, decent yields, and low residency requirements. Owners need only spend seven days in Portugal in the first year of their residence, and 14 in each of the subsequent years.

They qualify for permanent residence after five years and can then apply for citizenship, which also grants them access to all other European Union nations.

"They find the yield attractive - that's the first thing they go for," Cameira said, with buyers looking to generate 6 to 8 per cent, net of all fees. Other motivations include the freedom to move about Europe and send their children to school there.

"The programme is very attractive to Chinese businessmen," Chris Liem, the owner of the Hong Kong branch of residential brokerage Engel & Völkers, said. "It provides them with security for the future, and it gives them opportunities for their children."