For many people, relocating to Europe may seem like a long and complex journey. However, for those with the financial means, golden visas offer a relatively quick and simple solution. These residence by investment schemes allow wealthy individuals to "buy" their way into residency, sometimes even bypassing the need to live in the country. This process has gained popularity in Europe, especially among those seeking an escape from political instability, or desiring the benefits of residency in a European Union country. However, with growing concerns and shifting policies, the future of golden visas in Europe is uncertain.
What Are Golden Visas?
Golden visas are residency by investment programs that allow individuals to obtain residency permits (or citizenship in some cases) in exchange for making a significant financial contribution to the country. This often involves purchasing property, investing in a business, or making a large donation to government-approved funds.
Applicants typically need to meet specific criteria, such as being over 18 years old, having a clean criminal record, and having sufficient financial resources to make the investment. In some countries, the investment can also be in the form of government bonds, bank deposits, or contributions to specific sectors such as education or infrastructure.
Golden Visas in the European Union
In the past decade, the golden visa scheme has been widely adopted across the European Union, particularly in countries like Portugal, Spain, and Greece, offering both residency and the advantage of free movement within the EU. For high-net-worth individuals, this provided a fast-track path to a life in the EU, with the added benefit of access to healthcare, education, and business opportunities.
The Growing Concerns About Golden Visas
While golden visas have proven attractive to investors, they have also raised a number of concerns within the European Union. The EU has long criticized the programs, citing potential security risks, money laundering, tax evasion, and the possibility of corrupt individuals gaining citizenship through investment. In the aftermath of global conflicts such as the Ukraine war, the EU has been increasingly vigilant about monitoring these schemes. In 2022, the European Commission urged EU governments to phase out golden visas and golden passports, calling them a threat to transparency and security.
Changes in Golden Visa Policies Across Europe
Several EU countries have already begun phasing out their golden visa schemes, with many others reconsidering their implementation. Spain, one of the most popular destinations for golden visa seekers, has passed legislation to end its golden visa program for property investors by 2025. This move aims to reduce the pressure on the country's housing market, which has been heavily impacted by the influx of foreign investors.
Portugal, too, took steps to reduce property speculation and eliminated real estate investment as a basis for golden visa applications in October 2023. The Netherlands followed suit by abolishing its golden visa program in January 2024.
Countries Still Offering Golden Visas
Despite the growing trend of discontinuing golden visas in many EU countries, there are still nations that offer these schemes. For example, Hungary has reintroduced its golden visa program, allowing applicants to gain residency through investments such as purchasing property or donating to educational institutions.
Other countries, like Malta, still offer golden passports (citizenship by investment), though the minimum investment required for citizenship can be as high as €690,000. Greece and Italy also continue to offer golden visa programs, with Greece raising the minimum investment threshold for property purchases in response to housing shortages in popular areas like Athens and Santorini.
The Future of Golden Visas in the EU
With several EU countries opting to end or restrict their golden visa schemes, the future of these programs remains uncertain. As the EU continues to emphasize security, transparency, and ethical investment, many countries may follow suit in reevaluating or discontinuing their golden visa offerings.
For wealthy individuals seeking to move to Europe, this creates a sense of urgency, as the opportunities available today may not exist in the near future. Despite the increasing scrutiny, golden visas still remain a viable option for those with the financial means to invest.
Golden visas offer a unique opportunity for individuals seeking European residency, but they are increasingly being scrutinized and phased out due to concerns over security, money laundering, and the speculative nature of property investments. As the political and economic landscape shifts, it remains to be seen how golden visa programs will evolve in the coming years. For now, those interested in these programs may need to act quickly before they are gone for good.
Source: Euronews
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