What are ‘golden visas’ and which EU countries still offer them?

Securing the right to reside and work in a foreign land can often be a daunting and protracted endeavor. However, for those with substantial financial means, the process can be considerably expedited through the acquisition of what is commonly referred to as a “golden visa.”

Golden visas represent an enticing avenue for affluent individuals to effectively purchase residency rights in another country, sometimes without the obligation of actual residency. Particularly within the European Union (EU), the allure of these visas has surged, driven in part by individuals seeking to navigate away from political uncertainties such as those stemming from events like Brexit.

Notably, in the wake of the tumultuous socio-political landscape in the United States in recent years, a surge in applications for golden visas from American citizens had been anticipated.

However, the landscape is shifting. Across Europe, the era of golden visas is gradually waning. Portugal, for instance, revised its program in October, eliminating real estate investment as a qualifying criterion in a bid to curb property speculation.

Following suit, the Netherlands terminated its golden visa initiative in January 2024, marking a definitive step away from such schemes.

Spain, too, has taken measures to tighten its regulations, abolishing golden visas for real estate investors in a move aimed at addressing housing market pressures.

But what exactly are these golden visa programs, and why has the EU raised concerns about their integrity in recent times?

A golden visa, formally known as a residence by investment scheme, affords individuals the opportunity to obtain a residency permit in a country by making a significant investment, purchasing property, or through substantial donations.

Applicants must typically be of legal age, possess a clean criminal record, and demonstrate sufficient financial means to fulfill the investment requirements.

Moreover, there exist parallel programs, such as golden passports, officially termed citizenship by investment programs, which grant foreigners citizenship through similar financial avenues.

For EU member states, such programs also grant access to the privileges associated with EU residency, including unrestricted movement across member countries.

However, the EU has expressed reservations about these schemes. In 2022, the European Commission urged member states to cease the practice of selling citizenship to investors. Though distinct from golden visas, this call was part of a broader effort to clamp down on the lucrative industry, amid concerns that such programs could pose security risks, particularly in the aftermath of events like the Ukraine conflict.

Brussels has also called for enhanced scrutiny to ascertain whether individuals sanctioned due to conflict-related activities possess golden passports or visas issued by member states.

Previously, the EU has asserted that these schemes pose risks to security, transparency, and the foundational values of the European Union.

In a similar vein, the European Commission admonished Albania in October 2022 against implementing an investor citizenship scheme, citing concerns regarding security, money laundering, and corruption. As a result, Albania shelved its plans to introduce a golden visa scheme.

External threats are also a concern, as evidenced by the European Commission’s proposal to suspend Vanuatu’s visa waiver agreement due to the risks associated with its golden passport program, which enables nationals from third countries to obtain citizenship and subsequently gain visa-free access to Schengen zone countries.

In alignment with these trends, several countries have phased out their golden visa schemes. The United Kingdom discontinued its program in February 2022, as part of efforts to combat illicit financial flows, particularly from Russia.

In a similar vein, Ireland terminated its golden visa scheme, the Immigrant Investor Programme, in February 2023, amidst concerns over tax exploitation and international scrutiny.

While a few EU countries still offer golden passports, the number of nations providing golden visas is dwindling. Malta remains one such destination, with minimum investment thresholds starting at €690,000, facilitating citizenship within a timeframe of 12 to 36 months.

Despite the broader trend, Hungary stands out as an outlier, announcing plans to reintroduce its golden visa scheme in July 2024, having previously discontinued it in 2017. The Guest Investor Program (GIP) will offer various routes to residency, including real estate investment, property acquisition, or philanthropic donations.

Similarly, Italy and Greece continue to attract investors through their golden visa programs. Italy’s initiative, initiated in 2017, grants non-EU nationals residency in exchange for investments, with a minimum threshold of €500,000.

Greece, meanwhile, boasts one of the swiftest residency processes, with permits often issued within 60 days of application. Despite recent adjustments raising the investment threshold to €500,000, Greece remains an appealing option for prospective investors.

In conclusion, while the allure of golden visas remains palpable, particularly for affluent individuals seeking international mobility, regulatory shifts within the EU and heightened scrutiny underscore the evolving landscape of residency by investment schemes.