Golden Visa Programs in the European Union (EU) offer a unique opportunity for foreigners to acquire residency in exchange for financial investment.

Despite calls from the European Commission to terminate these schemes due to allegations of money laundering and corruption, many EU countries continue to operate them.

What are Golden Visas and Why Are They Changing?

Golden Visas are a type of residency permit granted by certain European countries in exchange for an investment. Traditionally, real estate investment was a popular option. However, due to housing concerns in some countries, the rules are evolving.

Here’s a detailed look at the various Golden Visa Programs across Europe, including recent changes and options available.

1. Hungary

Relaunch of the Guest Investor Program: Hungary has revived its Golden Visa Program, known as the Guest Investor Program (GIP), which was terminated in 2017. Effective from July 1 this year, the GIP allows internationals to acquire residency through several investment options:

• Real Estate Investment: Purchase a real estate unit for at least €250,000 and a residential property for €500,000.
• Educational Donation: Donate a minimum of €1 million to a higher educational institution in Hungary.

2. Greece

Affordable Real Estate Investment: Greece’s Golden Visa Program is one of the more affordable options in Europe. To qualify, investors need to:

• Minimum Investment: Contribute at least €250,000 in real estate.
• Increased Thresholds: In some parts of Greece, the minimum investment has been raised to €800,000 to address the housing crisis.

3. Spain

A shift from Real Estate to Alternative Investments: In response to the housing crisis, Spain has removed the real estate investment option from its Golden Visa Program as of April this year. Instead, wealthy foreign nationals can now invest in:

• Capital Investments: Invest in Spanish companies, government bonds, or bank deposits.
• Government Bonds: A minimum investment of €2 million.
• Corporate Bonds or Shares: At least €500,000.
• Innovative Startups: A minimum of €250,000.

4. Italy

Diverse Investment Opportunities: Italy’s residence-by-investment program, known as the Investor Visa for Italy, offers several investment options:

• Government Bonds: Invest at least €2 million.
• Corporate Bonds or Shares: Minimum investment of €500,000.
• Innovative Startups: Contribute at least €250,000.
• Company Startup: Apply for residency by investing in real estate through this option, though the Golden Visa does not directly support real estate investment.

5. Portugal

Expanding Investment Categories: Portugal has also removed the real estate investment option from its Golden Visa scheme. Instead, the program now includes:

• Research and Development: Investment in scientific and technological projects.
• Cultural Heritage Donation: Contributing to the preservation of cultural sites.
• Funds or Venture Capital Funds: Investing in specific financial instruments.
• Social Investment: The newly introduced Residence Permits for Social Investment option allows for a broader range of qualifying investments.

Countries Ending Their Golden Visa Programs

Amid growing concerns over money laundering, corruption, and the housing crisis, some EU countries are ending their Golden Visa Programs. Among the frontrunners are:

1. Ireland: The country has completely scrapped its Immigrant Investor Program, often referred to as the “golden visa.” Concerns over transparency, governance, and potential abuse led to this decision.

2 Portugal: While not entirely abolished, Portugal has significantly tightened its Golden Visa program restrictions. The country is focusing on investment types that contribute more directly to the economy, such as research and development.

Other countries like Spain and Cyprus are also considering similar measures due to concerns about property inflation and the impact on residents.

It is worth noting that the European Commission has been vocal about the potential misuse of these schemes, urging member states to terminate them to safeguard against illicit activities.

Countries Addressing the Housing Crisis

The housing crisis in Europe has prompted several countries to remove the real estate investment option from their Golden Visa Programs. The crisis is characterized by housing shortages and escalating rents, affecting both homeowners and renters.

• Housing Ownership: Approximately 70% of EU residents own their homes, while 30% rent.
• Overcrowding: Around 17% of the EU population lives in overcrowded conditions.

Final Words

In conclusion, the EU’s Golden Visa Programs offer various pathways to residency for international investors. While some countries have made significant changes to address housing concerns, the programs continue to attract wealthy investors seeking residency in Europe.