Residency by real estate investment is available in Greece from €250,000 and in Panama from $300,000, while Portugal relies on investment fund contributions starting at €500,000, since its real estate residency program was discontinued a few years ago.
In short
- Residency by ancestry is the simplest path: with qualifying roots, investment or income options may not need to be considered
- In the Schengen Area, the 90-out-of-180-day limit is counted across the entire zone, not per individual country
- Panama’s retirement visa requires around $1,000 in monthly income; Portugal’s requires around €900 per month
- Buying residency through real estate in Portugal is no longer possible — only through a capital investment starting at €500,000
- US citizens must declare to the IRS any rental income from foreign property and the existence of a foreign bank account
Three Paths to Foreign Residency
Residency abroad is obtained through one of three paths: ancestry, investment, or income. The ancestry path suits those who can document family roots in the target country — requirements vary by nation: some recognize kinship back to grandparents, others go as far back as great-grandparents. This route requires establishing when exactly the ancestors emigrated and gathering supporting documents.
If there are no qualifying ancestors — say, for Panama, Greece, or Portugal — the remaining options are the investment path and the income path. The choice between them depends on several factors: whether you plan to work in the new country or are already at retirement age and view residency as a way to live comfortably in retirement. Long-term goals matter too — where you intend to be based permanently, and the cost of healthcare in the chosen jurisdiction.
Foreign residency is obtained through ancestry, investment, or income. The choice depends on whether you have qualifying ancestors, your relocation goals, and your willingness to invest capital.
Visa-Free Travel and the 90-out-of-180-Day Schengen Limit
Visiting a country and living there are different things, so before relocating it makes sense to run a trial period on visa-free status. Citizens of the US, Canada, and most Western European countries can use short visa-free trips for this trial period without starting a residency process.
For travel to Schengen Area countries on such a passport, a limit of 90 days out of every 180 applies. Panama and most Latin American countries have their own visa-free allowances — they don’t always match the Schengen rule, so it’s worth confirming the specific limit for your citizenship before traveling. The Schengen limit is counted not per individual country but across the entire zone: 30 days in Italy, 30 days in Greece, and 30 days in Spain add up to the same 90 days, not three separate 90-day allowances per country. With rare exceptions, it doesn’t matter which specific Schengen country you’re in — the days add up.
With rare exceptions, it doesn’t matter which specific Schengen country you’re in — the days add up.
In 2025, the EU began rolling out stricter enforcement of this limit: legislation took effect that allows more precise tracking of stay durations. Previously, travelers could work around the requirements by entering one country and exiting through another, creating the appearance of a shorter stay. Now, fingerprints and photographs are taken at border crossings, making such workarounds harder.
Since 2025, fingerprints and photographs are taken at EU border crossings — schemes involving entry and exit through different countries to hide the real length of stay no longer work.
Residency by Ancestry
Residency by ancestry is available to those who can document family roots in a specific country — requirements differ from country to country. The degree of kinship that qualifies varies: in some places a grandparent is enough, in others the connection can go back to great-grandparents.
To confirm eligibility, you need to establish exactly when the ancestors emigrated from the country and gather supporting documents — birth certificates, marriage certificates, sometimes archival emigration records. Of the three residency paths, this one is considered the simplest: if the right roots exist, the other options — investment or income — may not need to be considered at all. If there are no ancestors from the jurisdiction of interest, the choice comes down to residency by income or by investment.
Of the three residency paths, this one is considered the simplest: if the right roots exist, the other options — investment or income — may not need to be considered at all.
Residency by Income: Retirement and Digital Nomad Visas
Residency by income is designed primarily for retirees: instead of investments or family roots, the applicant proves a minimum monthly income. In most countries, pensions and social benefits count toward this — for a US citizen that could mean Social Security payments, a private pension from a former employer, and any other documented income.
Thresholds for popular jurisdictions are relatively low. Panama’s retirement visa requires showing around $1,000 in monthly income. Portugal’s threshold is around €900 per month, which at current exchange rates roughly matches that same $1,000 figure.
A related option is the digital nomad visa. The difference from the retirement visa is that the applicant keeps working, but not for a local employer — instead, remotely for a foreign company. For example, someone who remains employed by a company in North America can legally live and work from Greece or Portugal. The retirement visa, by contrast, doesn’t grant permission to work in the country — but that’s not an issue for a retiree, since they aren’t planning to work anyway; proof of income to support themselves is enough.
If you plan to keep working remotely for a foreign employer, a digital nomad visa fits. If your income comes from a pension or social benefits and you don’t plan to work, a retirement visa fits.
Residency Through Real Estate Investment: Greece and Panama
Investment-based residency programs remain one of the most popular paths, though over the past couple of years some countries have started restricting them. Among the programs applicants consider most often, three countries offer capital-based investment residency — Portugal, Greece, and Panama — but it’s specifically Greece and Panama where real estate investment is an option, and most participants in these two programs choose exactly that route.
The minimum investment amounts are similar:
| Country | Minimum Real Estate Investment |
|---|---|
| Greece | €250,000 |
| Panama | $300,000 (the amount depends on the specific visa type) |
A real estate investment grants the applicant and their family the right to permanent residency, and later, if desired, the possibility of obtaining citizenship in that country.
Minimum Real Estate Investment for Residency
| Country | Greece | Panama |
|---|---|---|
| Minimum investment | €250,000 | $300,000 (amount depends on visa type) |
| What it grants | Permanent residency for applicant and family | Permanent residency for applicant and family |
| Path to citizenship | Possible later | Possible later |
Figures reflect the amounts at the time of writing; thresholds can change.
Why Portugal Requires Fund Investment Instead of Real Estate
Obtaining residency in Portugal through a real estate purchase is no longer possible: that option was discontinued roughly two to three years ago. At the time of this discussion, the most common remaining route was investment into capital — essentially, placing funds into investment vehicles with varying risk profiles and asset classes, similar to mutual funds in the US.
The entry threshold here is higher than in real estate programs: Portugal requires a €500,000 investment, whereas the minimum real estate amounts in Greece and Panama are lower. For an applicant, this means Portugal demands considerably more capital while offering no option to secure residency through a home purchase.
Tax Obligations for US Citizens Who Take Up Foreign Residency
When US citizens obtain residency abroad, they have to account not only for the requirements of the host country but also for obligations to their own: the US imposes more burdensome reporting requirements on its citizens abroad than most other countries. They must regularly report foreign bank accounts and foreign investments — for example, contributions made under Portugal’s capital investment program.
There’s an exception, though: real estate held in personal ownership abroad — in Greece or Panama — is not itself subject to IRS declaration. Rental income from that property, however, must be declared, as must the mere existence of a bank account in the country where the property was purchased. US taxes apply even to income earned abroad.
US taxes apply even to income earned abroad.
Figuring out what foreign income can be excluded or deducted, and what must be reported without exception, is a job for a qualified accountant: the nuances here are substantial enough that general explanations aren’t something to rely on.
The foreign real estate itself, held in personal ownership, doesn’t need to be declared to the IRS, but rental income from it and the existence of a foreign bank account must be declared.
Frequently asked questions
Can I get ancestry-based residency if direct-line kinship isn’t enough but I have more distant ancestors
Each country sets its own requirements for how far back kinship can go: some recognize only grandparents, others accept ancestry as distant as great-grandparents. Before gathering documents, you need to confirm the specific requirements of the chosen country rather than relying on experience from other programs.
Does a US citizen have to give up American citizenship when obtaining residency abroad
No, residency is not citizenship, and obtaining residency in another country doesn’t require giving up US citizenship. That’s precisely why US citizens who take up foreign residency keep their US reporting obligations alongside the requirements of the new country.
Can family members be included in an income-based or investment-based residency application
For the investment programs in Greece and Panama, this is explicitly stated: a real estate investment grants residency rights not only to the applicant but also to their family. For income-based residency (retirement and digital nomad visas), the material doesn’t mention such a provision.
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