Migration News of the Week: How Much Money You Need to Relocate

Moving to another country isn’t getting easier — though Romania seems intent on attracting wealthy foreigners. Yet, while it’s a European state, it’s also among the poorest in the EU, which might not appeal to everyone. Many potential expats consider Serbia, thinking it’s cheap — but they’re wrong. And high taxes remain a major obstacle, especially for those heading to the European Union.

Romania’s Golden Visa

Romania is
developing its own Golden Visa program that would allow foreign investors to obtain a five-year residence permit in exchange for investments starting at €400,000. The funds must be maintained for the entire validity period, and there will be no requirement for permanent residence in the country. Family members of investors will also be eligible, and after five years, they will be able to apply for permanent residence and citizenship.

Investments will be allowed in government bonds, real estate, local investment funds, or shares of companies listed on the Bucharest Stock Exchange. The proposed law includes strict due diligence on both the origin of funds and the applicants’ backgrounds, with all data vetted by the intelligence services. The initiative comes amid the closure of similar programs across the EU.

The European Commission has long urged member states to phase out citizenship and residence-by-investment schemes, citing corruption risks. It remains uncertain whether Romania can ignore these recommendations, but the country clearly needs EU support — its budget deficit reached 9.3% of GDP in 2024, the highest in the Union. By 2025, the shortfall remains severe at €15.1 billion in seven months. Authorities aim to reduce it to 8.6% in 2025 and 8.4% in 2026, mainly through spending cuts and tax increases, though the IMF warns of rising debt and economic slowdown.

Serbia Is No Longer Cheap

Serbia is often seen as an affordable relocation destination, but the latest income and cost-of-living data suggest otherwise. The average net salary in the country stands at 109,272 dinars (€934), while the median is 83,974 dinars (€718) — meaning more than half the workforce earns less than €720 per month. Meanwhile, living costs are rising faster than wages, especially in major cities.

In Belgrade, the average income reaches €998, but renting a central apartment costs around €759, while monthly expenses (excluding rent) exceed €670 per person. The price per square meter in the city center is €4,088, and €2,547 outside. Utilities cost €189, a cheap restaurant meal — €10, fuel — €1.65 per liter, milk — €1.4, bread — €0.8, and a dozen eggs — €2.4.

In Novi Sad, the net salary is slightly higher — €830, but expenses remain steep: €647 per person, and over €2,000 per family. Renting costs €400–500. Despite nominal wage growth, real purchasing power remains low. The gap between Belgrade and southern municipalities exceeds €1,000, prompting internal migration without improving living standards. In practice, the average Serbian salary barely covers essential expenses — Serbia is no longer the “cheap Europe” many imagine.

Europe: Taxes Rising Faster Than Wages

Life in the European Union keeps getting more expensive — and tax burdens are growing faster than paychecks. The OECD’s Taxing Wages 2025 report shows that the average tax burden rose by 1.6 percentage points, while real wages increased only 1.3%.

In Italy, nominal wages grew by 3.9%, but higher income and social taxes (up 7.5%) offset any benefit. Estonia and Czechia saw similar declines due to higher pension contributions and reduced exemptions. France recorded only a 0.7% wage increase versus 1.7% higher taxes, pushing many workers into higher tax brackets without real income gains. In Greece and Spain, post-pandemic policy rollbacks added 1.2–1.4 points to the tax load, while Belgium now taxes 52% of an average salary — one of the highest rates worldwide (compared to the OECD average of 34%).

A few countries managed to balance the pressure. Germany’s tax indexation reduced the effective rate by 1.1 points, Portugal’s progressive deductions protected low earners, and the Netherlands lowered employer contributions. But OECD experts warn that the growing gap between taxes and wages threatens labor market stability. They recommend shifting taxes away from labor toward property and capital, but large-scale reforms are unlikely soon — making Europe’s high taxes a serious drawback for relocation.

UK Permanent Residency: New Rules

The UK government continues to tighten its immigration policies. Officials are considering doubling the residency requirement for Indefinite Leave to Remain (ILR) from five to ten years. Applicants must prove employment, tax compliance, no welfare reliance, strong English skills, and community participation. Violations could result in delays or refusals, though high-income or well-integrated applicants may be exempt.

Home Secretary Shabana Mahmood emphasized that candidates must demonstrate their “value to society.” The reform aligns with rising public support for the Reform UK party, whose leader Nigel Farage proposes replacing ILR with renewable five-year visas.

The package also includes reducing skilled worker categories, ending care sector privileges, introducing new university fees, and cutting graduate visas to 18 months. A YouGov poll shows 44% of Britons support stricter rules, 43% oppose them, and 58% favor protecting current permanent residents. The public consultation will conclude by late 2025.