Housing, tax incentives and quality of life: the most attractive European countries

With Dubai and, more generally, the United Arab Emirates at the centre of geopolitical tensions, Europe could also strengthen its attractiveness in terms of real estate, becoming an increasingly attractive destination for investors and workers seeking new opportunities and relocation scenarios. In the tax incentive schemes adopted by the various European countries, the real estate component is now a decisive element. According to an elaboration by Dla Piper for Il Sole 24 Ore, some countries have more targeted policies than others.

Greece offers the Golden Visa, which directly links the purchase of a property to residence, with minimum thresholds per area, which in 2026 will reach up to 800,000 euro in the most valuable areas. Lisbon - having archived the season of "passive" visas - is instead focusing on those who live in their homes, with an ecosystem of rules that also include exemption from transfer tax and stamp duty for those under 35 (including foreigners) on the purchase of their first home, if it is worth up to around 330,000 euro. In the Netherlands, the under 34s do not pay transfer tax if the property has a value of up to EUR 555,000 and is used as their main home (which cannot be rented out). In Malta, the tax lever is even more explicit: some specific programmes provide for the possibility of obtaining subsidised residency if one buys a property worth at least 375 thousand euro, or rents one for at least 14 thousand euro per year. For first-time buyers in Malta (including foreigners), the scheme provides for total exemption from stamp duty for the first 200 thousand euro of the house's value, plus a bonus of 10 thousand euro for the mortgage. If the purchase is for a house in the historic centre or abandoned for more than seven years, in 2026 one is entitled to total exemption from purchase tax and a VAT refund of up to €54 thousand on renovation expenses, plus a purchase bonus of up to €40 thousand.

Where there is a lack of direct real estate policy, the tax authorities still act reflexively. In Spain, the Beckham Law introduces a flat tax rate of 24% for impatriates, digital nomads or those who move for work, increasing the financing capacity for home purchases as well. The same aim as the Italian flat tax at 7% for pensioners in small southern municipalities and the Irpef discount for impatriates. In Sicily, the mechanism becomes more targeted: 50 per cent of the Irpef rebate for those who move, conditional also on the purchase or renovation of a property and the maintenance of residence.

But when it comes to real estate, the filter of analysis cannot only be taxation. Affordability, services and quality of life are equally relevant. More accessible markets are Greece or Malta. "Territories that are attractive in terms of taxation and prices, but which suffer from a lack of services and logistical conveniences," explains Federico Rivolta, research area director of Scenari Immobiliari. In contrast, Spain stands out among the most complete contexts in Europe, with a competitive mix of taxation and quality of life. Not by chance, together with Portugal but with a more structured attractiveness, it is one of the main hubs for new residents. 'These are mature markets with medium-high entry thresholds, but they are a guarantee of stability and services,' adds Rivolta.

As for Italia, although the 'dolce vita' is the country's symbolic image, the limited fiscal attractiveness for workers and digital nomads, together with high prices in sought-after locations, slows down the inflow of new workers; while it continues to attract large assets thanks to the flat tax. Territories such as the Netherlands, on the other hand, have built their attractiveness on companies and skilled labour. 'However, these are markets with levels of sustainability that are too low for younger people, if not outside the big centres,' concludes Rivolta.