How to Invest in EU - New Opportunities Uncovered
Personal_Finance / Investing 2022 Jun 21, 2022 - 05:35 PM GMTAlthough the world seems to have gone haywire recently, one location remains a bastion of opportunity. The European Union (EU) is an enormous market that is considered one of the big three economic engines of the world (the others being the United States and China). With a plethora of opportunities for budding businesspersons, the EU offers a unique chance to conduct business in one of the world's most desirable regions. This post will explore some of the ways in which you could invest in this fantastic place in order to enhance your wealth and quality of life.
What Is The European Union?
In order to fully understand the ins and outs of investing here, it is essential to get a brief overview of what it actually is. The European Union is a political and economic union of 27 member states (28 before the UK left in what has been dubbed Brexit). It was created by the Treaty of Rome in 1957 after the Treaty of Brussels in 1948, which established the European Coal and Steel Community. The EU has developed an increasing role in world affairs over recent years due to its size, global influence, and growing economy. The EU is also a significant power broker in international trade negotiations.
All of these points have given it a unique position in a world that has become increasingly polarized. Although it has suffered recent hits to its credibility on the world stage for several reasons (COVID, war, refugee crises, etc.), it has remained the go-to place for investors searching for a place to conduct business and have an excellent standard of living.
How To Invest In The EU
As previously mentioned, the EU is a great place to make money, lay down roots, and raise a family. Thanks to its business-friendly climate, it has gained a reputation for innovation in almost all industries ranging from high fashion to chemical production. Now that you're convinced about setting up shop let's look at some ways to invest here.
Golden Visa Programs
One interesting thing that sets the EU apart from other regional blocs is the principle of free movement of people and goods. In practice, this means that if you can set up your business in one country, you will have the ability to do business and travel to every other EU nation. One way is by taking advantage of the golden visa program.
While several countries offer a golden visa, Portugal tends to be the most popular. Once you have your golden visa, you can begin to conduct business. Moreover, the golden visa Portugal 2022 update has made it more accessible than ever to get your foot in the door and get started. Additionally, you will gain a fast track to residency and eventually gain citizenship after a few years. Some of the main advantages of the Portuguese golden visa include:
- Fast track to residency
- You can access the enormous internal single market
- You can live and work in one of the most decibel countries in the bloc
- You will have access to the other 26 countries in the Schengen area
- It has a relatively fast application process
Nonetheless, you must meet specific requirements to qualify for this visa, including:
- A valid passport is required
- An investor must invest for at least five years or until they are eligible to obtain a permanent residence card.
- You must stay in the country seven days a year (although you will likely want to stay longer)
- You must comply with their health insurance policies
- You must invest a minimum amount (up to or over 1 million Euros)
- You need to create at least ten local jobs
- Minimum investment in real estate of 500,000 Euros is required
Buy An Existing Business
Another way to gain access to the EU market is to purchase an existing business. However, when it comes to buying a business, there are many factors that you should consider. This includes the financials, legal aspects, and the market in which the company operates. You should also consider what kinds of products or services your business will provide, how much revenue it generates, and how much debt it has on its balance sheet.
Obtain Residency The Standard Way
If some of the golden visa requirements are a bit too rich for your blood, you can always obtain residency in the usual manner. While this can be cheaper, it takes longer, there is no guarantee, and you need to factor in the expenses of living in the country for several years.
Best EU Countries To Do Business
After figuring out which route you want to take, you'll have to decide which countries you want to do business in. You need to factor in many things, including the cost of living, quality of life, and ease of doing business. For example, France might provide you with an amazon lifestyle, but it is notoriously challenging to conduct business. Conversely, Finland might make it seamless to operate in, but it might not provide you with the lifestyle you desire. So, which countries are consistently voted the best to live and work in?
Portugal
Starting off the list is Portugal. As previously discussed, its golden visa program is one of the most straightforward to get as well as offers a great place to live. The cost of living is relatively low, you have access to the gorgeous scenery and golden beaches, and it is connected to almost every other European country by air, road, and rail.
Ireland
Famed for its amicable people and stunning landscapes, Ireland also has an ace up its sleeve regarding trade. It has one of the lowest corporation tax rates worldwide (outside blatant tax havens), at just 12.5%. It also has a highly educated workforce and is very business-friendly.
The Netherlands
The Netherlands has developed a business-friendly environment, which is why it's an attractive destination for international companies. A large number of start-ups have also been established in the country. However, this should be no surprise, given they invented modern trade and were the first to establish a stock market!
When establishing a company in the EU, there are numerous options, but a golden visa seems to be the most attractive option. Nonetheless, whatever route you take, you can be sure of several things. You'll have access to the world's largest internal market and the chance to live in the world's most desirable countries.
By Steve Barker
© 2022 Copyright Steve Barker - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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