Golden visas have emerged as a contentious topic within the European Union. These residency-by-investment programs, offering affluent individuals the opportunity to obtain residency in exchange for substantial financial contributions, have become a double-edged sword for many EU member states.
On the one hand, they have been lauded for their potential to stimulate economic growth and attract foreign investment. On the other, they’ve faced mounting criticism for potentially compromising national security, facilitating money laundering, and exacerbating housing crises in popular destinations.
What Are Golden Visas?
Golden visas allow wealthy foreign nationals to obtain residency rights in a country by making significant financial investments. These programs typically give investors the right to live and work in the host country, often without the requirement of physical presence. The appeal of golden visas has grown, particularly among individuals seeking stability amid global uncertainties or seeking increased mobility within the EU.
The European Union has expressed concerns about golden visa schemes. In 2022, the European Commission called on EU member states to end citizenship-by-investment programs, commonly known as “golden passports.” While golden visas offer residency rather than citizenship, they fall under the same scrutiny due to their part in the multi-billion euro investment immigration industry.
Countries Phasing Them Out
Several EU nations have taken steps to discontinue or significantly modify their golden visa programs in response to these concerns. Spain, which introduced its golden visa scheme in 2013, is on the verge of eliminating the real estate investment option. The Spanish government has secured a legal route to end golden visas tied to property investments, with the ban expected to take effect by January 2025.
In October 2023, Portugal removed real estate investments as a qualifying option for its golden visa program. This decision was made to curb rising property prices and speculation in the housing market. Despite this change, interest in Portugal’s program remains high, particularly among Brazilian and North American investors.
The Netherlands joined the trend by ending its golden visa scheme in January 2024. Outside the EU, the United Kingdom scrapped its investor visa program in February 2022, citing concerns over illicit funds. Ireland followed suit in early 2023, terminating its Immigrant Investor Programme.
Countries Still Offering Golden Visas
Despite the general trend towards phasing out such programs, some EU countries continue to offer these visa schemes. Greece maintains one of the quickest paths to obtaining this visa, with residency permits issued within 60 days of application. In 2023, the country increased the minimum investment threshold for property in high-demand areas like Athens and Mykonos to €800,000 while setting a €400,000 limit elsewhere to encourage diverse investments.
Italy’s golden visa program, introduced in 2017, remains active. It offers non-EU nationals a two-year residence permit for a minimum investment of €250,000 through an Italian limited company. The program includes family members and provides a pathway to citizenship after 10 years of residency.
Bucking the trend, Hungary announced the reintroduction of its golden visa scheme in July 2024. The Guest Investor Program (GIP) offers three routes to residency. These include investments in real estate funds, property purchases, or donations to Hungarian educational institutions.
In the coming years, we will likely see further adjustments to these types of visas across the EU as member states balance economic interests with security concerns and housing market stability. However, for now, opportunities still exist for those seeking residency through investment in select European countries.
