INDIA-EU TRADE VERTICAL FACTSHEET

REAL ESTATE, INVESTMENT AND LOCATION SERVICES

This factsheet covers the India-EU real estate and investment location vertical — cross-border property investment, NRI and Indian HNI investment in EU real estate, EU-India business location advisory, Golden Visa and residency-by-investment programmes, and commercial property facilitation for Indian businesses entering EU markets. This is a services and investment vertical, not a goods export vertical.

1. Market Overview

2. Key Service Categories

3. EU Real Estate Investment Frameworks

3.1 Portugal — Golden Visa (ARI Programme)

Portugal's Autorização de Residência para Investimento (ARI) — the Golden Visa programme — was modified in October 2023 to exclude direct residential real estate investment from qualifying investments in certain areas (Lisbon, Porto, and coastal zones). Qualifying investments now include:

Investment fund subscriptions: Minimum EUR 500,000 in a Portuguese-regulated investment fund. Most popular route post-October 2023 reform.

Capital transfer: Minimum EUR 1.5 million transferred to Portugal.

Job creation: Creation of a minimum of 10 jobs in Portugal.

Business investment: EUR 500,000 in a Portuguese company creating or maintaining at least 5 permanent jobs for 3 years.

Cultural donation: EUR 250,000 for cultural heritage or artistic production support.

Residential real estate still qualifies in low-density interior areas and the Azores and Madeira. Many Indian investors have pivoted to qualifying investment funds as the primary route.

Key benefit for Indian investors: Portugal's Golden Visa leads to permanent residency after 5 years and citizenship after 5 years of legal residence — with freedom of movement throughout the Schengen Area.

3.2 Greece — Golden Visa

Greece's Golden Visa programme requires a minimum real estate investment of EUR 800,000 in Athens, Thessaloniki, Mykonos, and Santorini (increased from EUR 500,000 in August 2023). In other areas of Greece, the minimum remains EUR 400,000. Greece's programme is one of the fastest-growing Golden Visa markets for Indian investors — driven by comparatively lower prices and strong tourism rental yields.

Greek Golden Visa grants 5-year renewable residency. Citizenship requires 7 years of legal residence and Greek language proficiency. Freedom of movement within the Schengen Area.

3.3 Spain — Golden Visa (Note: Suspension Announced)

The Spanish government announced plans to suspend its Golden Visa programme for real estate investors (pending legislative approval). Status should be verified with a Spanish immigration lawyer before advising clients. Spain's digital nomad visa and the existing Non-Lucrative Residence Visa remain available for Indian investors and professionals.

3.4 Malta — Permanent Residency Programme (MPRP)

Malta's MPRP requires: a non-refundable government contribution of EUR 68,000–98,000 (depending on property route); a property purchase of minimum EUR 375,000 (or rental of minimum EUR 14,000 per annum); and a charitable donation of EUR 2,000. Malta permanent residency grants Schengen Area travel rights but not EU citizenship.

3.5 Portugal NHR / IFICI Tax Regime

Portugal's Non-Habitual Resident (NHR) regime (now replaced by IFICI — Incentivo Fiscal à Investigação Científica e Inovação for new applicants) offers significant income tax advantages for qualifying new residents. Indian HNIs relocating to Portugal under the Golden Visa route and subsequently establishing tax residency may benefit from reduced taxation on foreign-source income during the qualifying period. Tax advice from a Portuguese tax specialist is essential before relocation.

4. EU Commercial Property for Indian Businesses

Indian companies entering EU markets require commercial premises across several categories:

Technology and back-office: Ireland (Dublin, Cork), Portugal (Lisbon, Porto), Poland (Warsaw, Kraków) — lower costs than Western Europe, English-language environment, educated workforce. Irish IDA and Portuguese AICEP actively court Indian IT companies.

Pharmaceutical manufacturing and R&D: Ireland, Netherlands, Belgium — highly developed pharma regulatory infrastructure, proximity to EMA. Indian pharma companies (Sun Pharma, Cipla, Lupin, Dr. Reddy's) have established EU manufacturing and R&D facilities.

European distribution and logistics: Netherlands (Rotterdam), Belgium (Antwerp), Germany (Hamburg, Frankfurt) — gateway logistics hubs for Indian goods entering the EU. Indian trading companies and e-commerce operators require bonded warehouses and third-party logistics (3PL) facilities.

Automotive component manufacturing: Czech Republic, Slovakia, Poland, Hungary — lower-cost EU manufacturing with proximity to German automotive OEMs. Indian Tier-1 auto component suppliers (Motherson, Bharat Forge, Sundram Fasteners) have established EU manufacturing facilities.

5. India-EU Cross-Border Investment Facilitation

5.1 FEMA Compliance for Indian Outbound Investment

Indian residents and entities investing in EU real estate or businesses must comply with RBI's Liberalised Remittance Scheme (LRS):

LRS limit: USD 250,000 per resident individual per financial year — covers acquisition of immovable property outside India (where permitted), foreign currency accounts, overseas investment, and personal expenditure.

Prohibited LRS uses: LRS cannot be used to purchase property in countries with which India has adverse diplomatic relations. All EU member states are permissible.

Form A2: Required for remittances above USD 10,000. The AD bank files Form A2 with the RBI.

TCS (Tax Collected at Source): TCS at 20% applies on LRS remittances exceeding INR 7 lakh per financial year (for education and medical treatment: lower rates). TCS is creditable against the remitter's final tax liability.

5.2 Corporate Outbound FDI

Indian companies making FDI in EU subsidiaries or acquiring EU businesses must comply with RBI's Overseas Investment Framework (OIF) — Foreign Exchange Management (Overseas Investment) Rules 2022:

Automatic route: Indian companies may invest up to 400% of their net worth in overseas ventures without RBI prior approval (subject to conditions).

Approval route: Investments beyond the automatic route threshold or in certain restricted sectors require RBI/FIPB approval.

ODI-1 Form: Required for all overseas direct investments — filed with the AD bank before investment.

6. Trade Facilitation Opportunities and Commission Model

Commission structures in the real estate and investment facilitation vertical:

Residential property (Golden Visa route): 2%–5% of property purchase value as introducer/referral fee, split with the local real estate agent. For a EUR 400,000–800,000 Golden Visa qualifying purchase, this represents EUR 8,000–40,000 per transaction.

Fund investment facilitation: 1%–2% introducer fee on qualifying fund subscription. EUR 500,000 investment = EUR 5,000–10,000 per transaction.

Commercial property for Indian businesses: Standard commercial real estate introducer fee: 0.5%–1.5% of lease/purchase value. For a 5-year lease on a EUR 2 million property, introducer fee = EUR 10,000–30,000.

Business location advisory: Retainer-based advisory (EUR 5,000–25,000 depending on scope) plus success fee on completion of location decision.

Hotel / hospitality asset acquisition: 1%–2% of transaction value. Indian hotel group acquisition of a EUR 20 million EU hotel = EUR 200,000–400,000 facilitator fee.

7. Key Bodies and References

Doc 71 — India-EU Trade Vertical Factsheet: Real Estate, Investment and Location Services — Neutral Template