The Golden Visa has not had its final say. Despite the visa controversy, several countries keep relying on it to attract foreign capital. Let's discover which countries are relaunching or reforming the program and what has changed.
Portugal will not scrap its Golden Visa program
In February 2023, the Portuguese government announced the abolishment of its Golden Visa program, originally designed to boost the Portuguese economy hit by the subprime crisis. The program brought more than 7 billion euros to the state from 2012 to 2022. However, the local population pointed out the many negative aspects, such as rent spikes, general price increases, and gentrification in popular cities. In response to local dissatisfaction, the traditional Golden Visa (real estate investment) has been scrapped, but the government opened another avenue to keep attracting foreign investors.
The new moderate-right government, in office since April, plans to introduce a "social investment residence permit." This permit, part of the revised Migration Action Plan, would be issued in exchange for an investment in immigrant-focused projects (such as immigrant reception infrastructure). The government aims to facilitate foreign investment and is considering a fast-track process. The required investment amount for this permit has yet to be disclosed, as this new plan still needs approval.
It's also important to note that the end of the traditional Golden Visa did not remove other possibilities for acquiring residency through investment. Although riskier, investment funds remain an alternative. Another option is the D2 visa intended for immigrants starting a business or investing in an existing one in Portugal.
Other countries that are maintaining their Golden Visa programs
Portugal is not the only country that chose to maintain its Golden Visa program. Greece has revised its program to keep attracting foreign investors. The United Arab Emirates (UAE) and Turkey also propose new rules. Hungary has even decided to reintroduce the controversial visa.
Hungary launches a new Golden Visa in July 2024
In November 2023, the Hungarian government proposed a bill to reform immigration conditions for third-country nationals, reintroducing the Golden Visa. Hungary had ended the program in 2017 due to concerns about illegal immigration and opposition criticism that the government favored wealthy expatriates from third countries over economic migrants with modest incomes. However, Hungary had the firm intention to relaunch its program. The Golden Visa will be operational once again in July 2024. The new program will initially allow non-EU and non-EEA expatriates to obtain "guest investor" status. If they are eligible, they can receive a 10-year residence permit. Foreign applicants can choose from three options: donate one million euros to a public foundation supporting Hungarian educational institutions, invest 250,000 euros in a Hungarian real estate investment trust, or purchase real estate worth at least 500,000 euros (starting January 1, 2025). It's worth noting that the Hungarian Golden Visa does not impose any residency requirements. Wealthy foreigners can obtain permanent residency if they reside in the country for at least three years. After eight years of permanent residency, they can apply for naturalization.
Greece announces new rules starting August 31, 2024
Greece seeks to capitalize on the scrapping of the Golden Visa program in certain countries (like the UK and Ireland) to attract wealthy investors. However, the country is also mindful of local concerns. The Greek Ministry of Finance has recently created two distinct investment zones. Minimum investment amounts will vary depending on the geographical location of the property. The first zone includes sought-after areas such as Thessaloniki, Mykonos, Attica, and Santorini, where investments will start from 800,000 euros. Other regions in Greece will be more accessible, with a minimum investment of 400,000 euros. These new investment thresholds are considerably higher than the previous requirement of 250,000 euros (500,000 euros for properties in Athens, Thessaloniki, Mykonos, and Santorini). The government hopes to ease the pressure on tourist neighborhoods by creating these two zones and shifting economic benefits to less-favored regions. The investment must concern a property of at least 120 square meters. The reform is not retroactive, and Golden Visa applications already submitted will be processed without considering the revised program, taking effect on August 31.
The UAE relaxed its rules since January 2024
The UAE continues to attract the wealthiest foreigners. Expatriates no longer need to provide a deposit to be eligible for the Golden Visa. Previously, they had to deposit at least one million AED (approximately 272,000 dollars). Currently, candidates are eligible as long as they own property worth at least 2 million AED (approximately 545,000 dollars), regardless of the property's status (off-plan or completed, mortgaged or not). Furthermore, owning a property worth at least 2 million AED qualifies you for long-term residency. Holders of a 10-year Golden Visa can apply for renewal under the same conditions.
Indonesia facilitates Golden Visa acquisition for foreign investors
Introduced at the beginning of the year, the new measure specifically targets foreign companies investing in "Nusantara" (IKN), the new Indonesian investment project to relocate the capital from Jakarta to Nusantara by 2045. Minimum investment amounts have been reduced from 50 to 10 million dollars for a 10-year Golden Visa and from 25 to 5 million dollars for a 5-year visa. Foreign companies looking to establish in Nusantara will benefit from tax incentives.
Turkey establishes a new citizenship access program
While often confusing, the golden passport goes beyond the Golden Visa. The Golden Visa program grants residency through investment, while the golden passport program offers citizenship through investment. Despite controversies, Turkey maintains its citizenship by investment program. Since January 2024, the country has introduced significant changes to the program, the most important being the new physical presence requirement for citizenship applications. Before 2024, physical presence was not mandatory. The applicant could simply submit their dossier through an intermediary. Since January, authorities now take the applicant's fingerprints, requiring their presence on site. The change also affects the spouse, though minor children do not need to travel to Turkey.
What about Spain?
It was announced as definitively terminated before reversing the decision. In April, the Spanish government finally announced the termination of the Golden Visa, but only for its real estate component. Investing in real estate to obtain residency would become prohibited. However, the real estate Golden Visa represents nearly 95% of applications. Created in 2013 to revive the economy, the Golden Visa is now accused of causing rental prices to skyrocket. According to the executive, 100,000 “real estate” Golden visas have been issued since the program's inception.
Why the Golden Visa remains highly controversial
The Golden Visa is blamed for facilitating tax evasion, corruption, money laundering, and increasing the cost of living, starting with housing costs. Yet, the controversial visa remains in place in many countries. The EU struggles to ban golden passports and heavily regulate Golden Visas. The effort is currently mixed, with resistance from Hungary, Greece, Malta, and Austria. However, the EU and its Schengen Area remain highly sought-after by wealthy non-European investors. But for its proponents, the benefits of the Golden Visa outweigh its drawbacks. In Switzerland, the UAE, or Indonesia, there is no question of ending the Golden Visa.
Useful links:
