Start with the collateral, not the country
The most expensive mistake in investment migration financing is choosing the destination first. Programme thresholds are fixed; your borrowing base is not. A €900,000 portfolio of concentrated tech equity might support a €350,000 drawdown, which rules out a €500,000 threshold entirely — but that only becomes apparent after credit review, by which time deposits may already be at risk.
Establish an indicative borrowing base first, then shortlist programmes whose thresholds sit comfortably inside it. Comparing programme requirements side by side is the natural second step once you know the number you are working with.
Route 1: Lombard and securities-backed lending
A Lombard facility pledges your marketable securities to the lender in exchange for a revolving credit line. It is the fastest and usually the cheapest route because the collateral can be valued daily and sold within days if things go wrong.
Advance rates run from 80–90% on high-grade government bonds down to 30–50% on emerging-market equity, with a blended 50–70% typical for a diversified portfolio. Once established, drawdown takes 24–72 hours, which suits fund subscriptions with hard closing dates.
- Best for: investors with €500,000 or more in liquid, diversified holdings
- Cost: reference rate plus 1.0%–2.0% in EUR, plus a 0.25%–1.0% arrangement fee
- Timeline: 2–6 weeks to establish, then same-week drawdowns
- Main risk: margin calls, because the qualifying investment cannot be sold to cure them
Route 2: Cross-border and non-resident mortgages
Where the programme has a property route, a local mortgage is often the more natural instrument. The asset securing the loan is the asset creating the residency right, so there is no separate portfolio to place at risk and no margin call mechanic tied to daily market prices.
Non-resident borrowers should expect 50–70% loan-to-value, full income verification, and an 8–16 week process including valuation, notary and registration. Fixed rates in the eurozone commonly sit between 3.5% and 5.0%. Some programmes require a minimum unencumbered portion, which caps how much of the threshold the mortgage can cover.
- Best for: Greece, Spain, Italy and UAE property routes
- Cost: 3.5%–5.0% fixed, plus 1%–2% in arrangement, valuation and legal fees
- Timeline: 8–16 weeks; start before signing a reservation agreement
- Main risk: valuation shortfalls and slow approvals that jeopardise completion deadlines
Route 3: Structured and private-bank facilities
Entrepreneurs whose wealth sits in an operating company, real estate portfolio, life policy or trust rarely fit a standard Lombard template. Private banks will lend against mixed collateral pools, but pricing widens to reference plus 2.5%–4.5%, advance rates fall to 40–60%, and legal costs rise because each pledge is bespoke.
The trade-off is worth it when the alternative is selling a stake in a business at a discount, or triggering a large gain in a single tax year. Expect 6–12 weeks and significantly more documentation than a securities-backed line.
Route 4: Hybrid funding
In practice most financed applications are hybrids. A typical structure funds 60–70% of the threshold with a loan and the remainder with cash, which keeps the facility well inside its limit, satisfies any unencumbered-portion rule, and leaves headroom for a margin call.
Hybrid funding also softens the currency problem. If your collateral is in dollars and the investment is in euros, part-funding in cash reduces the size of the mismatch you need to hedge.
A useful default: borrow no more than two-thirds of the qualifying amount, keep one-third in cash, and hold a further 10–15% of the loan as a dedicated cure reserve.
Costs you should budget beyond the interest
| Cost item | Typical range | When it is payable |
|---|---|---|
| Arrangement / facility fee | 0.25%–1.0% of the limit | At signing |
| Legal and pledge documentation | €2,000–€15,000 | At signing |
| Property valuation and survey | €500–€3,000 | During mortgage underwriting |
| Currency hedging | 0.2%–0.8% per year | Ongoing |
| Cure reserve opportunity cost | 1%–3% per year on the reserve | Ongoing |
| Early repayment | 0%–2% of the balance | On exit |
The sequence that avoids lost deposits
- Obtain an indicative borrowing base in writing from at least two lenders
- Shortlist programmes whose threshold sits at or below two-thirds of that base
- Model the all-in annual cost against the expected return of the retained portfolio
- Confirm the programme permits financed capital and any unencumbered minimum
- Secure credit approval before signing a reservation or subscription document
- Complete the investment, then file the residency application with a clean source-of-funds file
Frequently asked questions
Which financing route is cheapest?+
Securities-backed Lombard lending is usually cheapest for investors with liquid portfolios, because the collateral is easy to value and liquidate. Mortgages cost more in headline rate but carry no daily margin call risk.
How long does the whole process take?+
Allow 6–10 weeks for a Lombard-financed investment and 3–4 months where a non-resident mortgage is involved, before the residency application itself is filed.
Can I combine a loan with my own cash?+
Yes, and most successful applications do. Funding roughly two-thirds by loan and one-third in cash satisfies unencumbered-portion rules and leaves headroom against margin calls.
Will the immigration authority object to borrowed funds?+
Generally no, provided the source of funds file documents the facility, the collateral and the origin of the underlying wealth. Opaque or undocumented lending is what causes refusals, not leverage itself.
Discuss your financing with a CISI Level 7 adviser
We model the loan against your actual portfolio, the programme you are targeting, and your tax residency — before you commit capital. No product commission, no obligation.