The table for those wishing to obtain a residence permit in Europe is more dynamic than ever. On one side, there is increasing migration pressure and tightening regulations, and on the other, there are advantageous programs offered by countries seeking to attract talent and capital. According to Eurostat, by the end of 2023, the number of non-EU individuals living in EU countries with a residence permit reached 25.1 million, growing by 4.3% in just one year and by 28.3% between 2018 and 2023. This growth means both opportunity and a complex legal landscape for anyone planning to reside in Europe.
Understanding the residence permit system in Europe: Temporary, permanent, and EU long-term residence
First, let’s clarify the basic concepts. When we talk about “residence permit” in Europe, we actually refer to three main statuses:
- Temporary residence permit
Issued for 1-2 year periods in most countries, it can be extended. The purposes are fundamental:- Work (employment contract, entrepreneurship, intra-company transfer)
- Education (bachelor’s, master’s, doctoral, research)
- Investment (golden visa and similar capital programs)
- Family reunification
- Humanitarian/refugee status
- Permanent residence
Comes into play after 5 years of legal and uninterrupted residence in most EU countries. Income, insurance, integration, and criminal record requirements are stricter. - EU long-term residence status
A special status based on EU law. Requires 5 years of legal residence, sufficient and regular income, health insurance, and often basic integration/language requirements. Unlike national permanent residence, it offers some additional free movement rights within the EU.
The basic application prerequisites are largely similar across countries:
- Appropriate type of entry visa (usually a type D national visa)
- Proof of purpose of stay (employment contract, university acceptance, investment documents, marriage/kinship certificates)
- Sufficient and regular income or savings
- Comprehensive health insurance
- Proof of accommodation (rental contract, title deed, invitation letter)
- Clean criminal record and security clearance
- Language and integration tests, often at the A2–B1 level, for permanent residence and citizenship
How many people live with a residence permit in Europe? What do the data say?
The most reliable figures across the EU are published by Eurostat. As of the end of 2023, the table is as follows:
- Number of non-EU individuals with a residence permit in the EU: 25.1 million
- Annual growth rate (2022–2023): 4.3%
- Total stock increase during the period 2018–2023: 28.3%
Distribution by reasons for residence (stock, 2023):
- Family reunification: 33.7% – Still the largest category and relatively stable.
- Employment: 20.7% – There has been a 67.3% increase in the stock of work permits between 2018 and 2023.
- Refugee / subsidiary protection: Increased from 1.6 million in 2018 to 3.8 million in 2023, growing by 137.4%.
- Education: Increased by 45.3% between 2018 and 2023.
Countries with the largest residence permit stocks (end of 2023):
- Germany: approximately 5.7 million (about 5.6 million in 2024 data)
- France: between 4.1 and 4.3 million
- Italy: approximately 3.8 million
- Spain: approximately 3.8 million and one of the fastest-growing during the 2018–2023 period
Countries with the highest density of residence permit holders per population (per 1000 people, 2023):
- Malta: 200 / 1000
- Cyprus: 142 / 1000
- Estonia: 140 / 1000
- Latvia: 138 / 1000
Largest communities by nationality (stock, 2023):
- Moroccan citizens: 2.1 million
- Citizens of the Republic of Turkey: 2.0 million
- Ukrainian citizens: 1.5 million
These statistics clearly show three trends:
- The non-EU population living with a residence permit in the EU is rapidly increasing both in absolute numbers and in protection status.
- Family reunification is the broadest and most stable category, less affected by crises.
- Germany, France, Italy, and Spain are becoming centers of gravity in migration and residence both in terms of numbers and policies.
Types of residence permits: Which channel makes sense to pursue?
Residence permits in EU countries are broadly categorized as follows:
Work-related residence permits
Work-related permits form the backbone of economic migration. Under this heading:
- EU Blue Card: For highly qualified professionals. Requires a certain minimum annual gross salary and diploma.
- National work visas: Salary thresholds, occupation lists, and quota systems vary by country.
- Seasonal worker permits: Generally short-term for sectors like agriculture, tourism, and construction.
The 67.3% increase in the stock of work-related residence permits between 2018 and 2023 underscores Europe’s need for skilled employment. For companies, this necessitates correctly structuring payroll, tax, and social security obligations on an international scale.
Family reunification
Permits obtained through family ties account for more than one-third of residence permits in the EU. Generally:
- Applications are made through a resident spouse or parent.
- Proof of a genuine and stable relationship, common living, and accommodation conditions are required.
- Income level must be sufficient to support family members without needing social assistance.
Education-related residence permits
Thanks to the attractiveness of EU universities, education-related residence permits increased by 45.3% between 2018 and 2023. Typical conditions:
- Acceptance letter from an accredited educational institution
- Financial means to cover tuition and living expenses
- Health insurance and accommodation proof
Many countries offer the possibility of job searching for a certain period post-graduation, which can then be converted into a work permit.
Investment / “Golden Visa” programs
Residence through investment (often referred to as “golden visa”) has a relatively small share within total residence permits; however, its political and media visibility is high. Typical structures:
- Real estate investment (some countries have now restricted or eliminated this)
- Participation in investment funds
- Increase in company capital or direct investment
- Donations to cultural or scientific projects
In recent years, real estate-based golden visa programs have gradually been narrowed in various countries; priority is given to funds and productive investments.
Other reasons
Under the title “Other reasons,” research, volunteering, religious duties, humanitarian reasons, and special circumstances are included. A slight decrease of %2.9 has been observed in this category between 2018 and 2023, reflecting the tendency of states to categorize migration systems more clearly.
General application requirements: What criteria should you be prepared for?
Although the process and document list vary by country, the following elements are almost standard across the EU:
- Appropriate entry visa: A type D visa suitable for work, education, family, entrepreneurship, or investment purposes.
- Documents suitable for the purpose of stay:
- Employment contract, employer invitation letter, or company incorporation documents
- University acceptance letter and student certificate
- Proof of family ties such as marriage certificate, birth certificate
- Investment contract, fund participation certificate, bank statements
- Financial adequacy: Proof of income or assets showing that the applicant and their family can live without needing social assistance.
- Health insurance: Comprehensive insurance is required for both temporary permits and permanent status in most countries.
- Proof of accommodation: Rental contract, property deed, or official invitation/commitment if staying with a sponsor.
- Criminal record and security checks: A clean criminal record for the last 5-10 years is of great importance.
- Language and integration conditions: Most countries apply language proficiency at the A2–B1 level and integration tests that include cultural/legal knowledge at the permanent residence and citizenship stage.
European countries offering “relatively easy” residence or popular programs
International sources and consultancy reports particularly emphasize some European countries that are considered “relatively flexible for obtaining residence permits” by 2025. This does not mean that the conditions are entirely easy; however, they are considered competitive in criteria such as income thresholds, investment amounts, bureaucratic intensity, and the path to permanent residence.
Portugal: Flexibility and the path to citizenship in 5 years
Portugal stands out for both its cost of living and the diversity of residence pathways:
- D7 / Passive Income Visa: For those with regular passive income (pension, rent, dividends, etc.). The income threshold is set at relatively low levels.
- Startup / entrepreneur visas: For entrepreneurs with an innovative business plan. There is no specific minimum investment requirement; however, annual minimum income and accommodation conditions exist.
- Updated investment program: Has shifted from the classic real estate-focused model to funds, donations, and productive investments.
Factors increasing Portugal’s attractiveness include:
- Relatively low income threshold and the ability to include family members in the application
- Possibility to apply for permanent residence and citizenship after 5 years
- A2 level Portuguese language requirement for citizenship
Many analyses position Portugal as one of the most flexible and accessible ways to obtain a residence permit in Europe despite bureaucratic challenges.
Spain: Non-lucrative, digital nomad, and investment channels
Spain particularly attracts attention with its Mediterranean climate, real estate market, and various visa pathways:
- Non‑Lucrative Visa: For those who want to live in Spain without working, relying on regular income from abroad. Proof of passive income and savings is required.
- Digital nomad visas: For remote working professionals, requiring proof of a certain monthly income and company/regular contract.
- Investment-based residence: Residence opportunities through real estate, fund, or company investments. Some real estate options have been gradually tightened but remain popular.
Spain offers the possibility of permanent residence after 5 years of residence and citizenship after 10 years of residence for most applicants (shorter periods for some nationalities).
Other notable countries: Malta, Cyprus, and the Baltic states
According to Eurostat data, Malta, Cyprus, Estonia, and Latvia have the highest density of residence permits relative to their population. This does not mean that each is the “easiest” country; however, it indicates:
- A need to attract external labor and investment despite a small population
- Residence-giving models through various investment and entrepreneurship programs
- Channels opened to entrepreneurs, especially in digitalized countries like Estonia, focusing on IT and startup ecosystems
The dimension for companies and professionals: Tax, payroll, and “posted worker” risks
In Europe, residence permits affect not only individuals but also the strategic decisions of companies. Particularly, poorly structured processes in the following areas can create significant risks:
- Payroll and EOR (Employer of Record) models: Compliance with local labor laws, minimum wage, social security, and tax withholding rules is vital when employing workers in different EU countries.
- Posted worker model: Sending an employee from one country temporarily to another EU country as a “posted worker” offers great opportunities for social security and tax optimization. However, notification obligations and maximum assignment durations must be closely monitored.
- Permanent establishment and permanent representation risk: Having long-term employees in a country may inadvertently create corporate tax obligations there.
Therefore, especially for companies building teams in multiple EU countries, it is essential to consider residence permit legislation together with international accounting, tax, and payroll management.
How does Corpenza position itself in this table?
Residence permits, golden visas, family reunification, or work permit applications are only a part of your personal plans. On the other side, there are company formation, tax, payroll, social security, and long-term mobility strategy. Corpenza is positioned precisely at this intersection.
On a European and global scale:
- Company formation and international business development
- Residence permits and investment citizenship programs
- International accounting and tax planning
- Payroll, EOR, and posted worker model personnel leasing
We provide end-to-end solutions in these areas.
For example:
- When planning residence through investment in Portugal or Spain, we can simultaneously turn your investment into a tax-optimized company structure.
- When building a team in Germany or France, we take a holistic approach to determine the appropriate residence and work permit pathways for your employees while also considering payroll and social security obligations.
- In sending personnel from a company based in Turkey to EU countries using the posted worker model, we design a structure that minimizes both the employees’ residence/work status and tax risks.
This holistic perspective allows not only for obtaining a visa but also for establishing a sustainable and audit-resistant international structure.
Conclusion: Increasing numbers, tightening rules, and the need for professional planning
Eurostat data shows that the non-EU population living with a residence permit in the EU grew by 28.3% between 2018 and 2023, reaching 25.1 million. Family reunification remains the largest category, but work and education channels have also gained significant momentum. The 137.4% increase in permits under refugee and subsidiary protection during the same period is a direct reflection of geopolitical fragility in Europe.
For individuals, this table means:
- More competitive application processes,
- More detailed financial and legal reviews,
- Language and integration requirements becoming increasingly prominent
For companies, it signifies:
- The need to rethink employment and residence strategies across the EU,
- The necessity to develop integrated solutions in the context of tax, payroll, social security, and migration law
is gaining importance day by day.
Therefore, whether you are planning an individual residence permit or leading a company looking to scale in Europe, you need a roadmap supported by current data that is legally sound and financially optimized. At this point, working with an experienced team that designs migration processes alongside company formation, tax, and global mobility is the healthiest way to manage potential legal and financial risks from the outset.
Important disclaimer
This text is prepared for general informational purposes. The explanations here do not constitute legal, tax, or financial advice. Migration and residence legislation frequently changes; there may be different applications between countries and even within different states/regions of the same country.
Before making any decisions, you should check the latest regulations through the official authorities, consulates, and reliable statistical institutions of the relevant country (for example, Eurostat) and obtain professional legal and financial advice specific to your situation. Corpenza accepts no responsibility for the consequences of individual decisions made based on the information in this text.
