What is a Golden Visa?

Immigrant investor programs that offer the right to residency or even citizenship in another country have grown in popularity in recent years as more families take advantage of golden visa and golden passport programs.

More than 25 countries now offer options for residence-by-investment (also known as the “golden visa”) and/or citizenship-by-investment (“golden passport”). These programs, which originated in the 1980s in the Caribbean and the Pacific Rim, are designed to attract foreign capital and business leaders to those countries in return for greater flexibility in international travel. The practice has since spread to Europe, the United States, the United Kingdom, Canada, and other countries as a source of foreign capital. 

While benefits and requirements vary from one country to another, immigrant investor programs generally require participants to invest a minimum amount of money and meet other criteria to qualify. Options may include buying real estate, creating a certain number of jobs, or investing in specific business sectors. Some programs only offer investors residency during the period of their investment, while others can lead to citizenship after several years.

Chinese citizens hold the most golden visas, but interest skyrocketed among citizens of many nations during 2020. “Over the past five to 10 years, the primary motivations amongst CIP participants -- who tend to have a net worth of anywhere from $2 million to over $50 million -- have been freedom of movement, tax benefits and lifestyle factors, such as better education or civil liberties,” CNN recently reported (https://www.cnn.com/travel/article/buying-multiple-passports-pandemic/index.html).  “But with Covid-19 dramatically transforming our 2020, some elite families are also considering healthcare, pandemic responses and potential safe havens to ensure they have a backup plan for the future.”  

One advantage to obtaining a golden passport in Europe is that recipients can move freely within the Schengen Area, an area comprising two dozen European countries that have officially abolished all passport and border controls at their mutual borders. The group is named after the 1985 Schengen Agreement signed in Schengen, Luxembourg. 

To illustrate some of the features and differences in immigrant investor programs, the following summarizes programs from two of the most popular European destinations, Greece and Spain.

Spotlight on Greece

Greece was among the first country that suspended immigration during the early stages of the COVID-19 pandemic, but it was also among the first European nations to reopen its borders. Government officials were particularly anxious to stimulate new investment after the pandemic-driven recession of 2020 by modifying its golden visa program. Greece offers unrestricted access to the European Union, rich cultural attractions, historic archaeological sites, and the spectacular beauty of its Mediterranean islands.

The Greek program, launched in 2013, is one of the most affordable golden visa programs in Europe, as it has the lowest investment requirement. Greece also offers the fastest processing time, providing applicants access to the Schengen Area within three months. The program covers the applicant, his/her spouse, and children up to 24 years of age. Investment options include:

• Investing at least EUR 250,000 (about $300,000) in real estate.
• Entering a 10-year lease for hotel or other tourist accommodations. 
• Contributing at least EUR 400,000 in capital to a Greek company.
• Purchasing EUR 400,000 in Greek bonds (EUR 800,000 for some types of bonds).
• Depositing EUR 400,000 in a Greek credit institution for at least a year.

The Greek golden visa does not require the applicant to reside in Greece to obtain or renew the investor visa. (However, one must live in the country for 183 days per year for at least seven years before applying for citizenship). It also does not grant the holder the right to work in Greece. Real estate investors receive a five-year residency permit, which can be renewed every five years as long as their property investment continues.

Spotlight on Spain

Spain also launched its Golden Visa program in 2013, a year after the introduction of neighboring Portugal’s successful program. Spain has the largest economy among the European golden visa countries. It is particularly popular with people seeking vacation homes in such Mediterranean cities as Barcelona and Madrid, and with parents who want to establish Spanish residency for their children while they live elsewhere.

Applicants must purchase Spanish real estate to qualify: rentals and corporate investments do not count. The program requests a minimum real estate investment of EUR 500,000 (almost $600,000). The investment must be made before applying for the golden visa. 

As with Greece, golden visa holders are not required to reside in Spain to maintain the visa. The visa is issued for one year and is renewable. Applicants can apply for permanent residency after five years and for Spanish citizenship after 10 years. However, the applicant and any family members seeking citizenship must reside in Spain for at least 183 days during each year to qualify.

More Guidance on Golden Visas

British Passport Pro fields numerous inquiries from our British and American customers interested in learning more about moving overseas for retirement or business opportunities. While we have particular expertise in Greece and Spain, we can also help you explore alternatives among immigrant investor programs in other countries. For more information, you can schedule a telephone call with our experienced Atlanta-based team through our website: https://www.britishpassportpro.com/