Spain promises a total ban on golden visas – but one country is reintroducing its scheme

Getting the right to live and work in another country can be a long and difficult process. But that’s not always the case for those with money to spend.

Golden visas offer the opportunity for wealthy people to essentially ‘buy’ the right to residency – sometimes without even having to live in the country.

And their popularity in the European Union is growing as people look to move away from political decisions such as Brexit that may limit their rights.

With the unsettled political and social environment in the US in recent years, applications for golden visas from Americans were also projected to increase.

But golden visas are now gradually being phased out across Europe. Portugal amended its scheme in October, removing real estate investment as a basis for golden visa applications in the hope of reducing property speculation.

The Netherlands followed suit, ending its golden visa scheme in January 2024.

Earlier this year, Spain also said it would abolish golden visas for those who invest in real estate – but the promise is yet to materialise. Progress was hinted at this week, when the government announced it plans to get rid of the visa for all types of investment.

So what exactly are these golden visa schemes and why has the EU raised questions about their safety in recent years?

What is a golden visa?

Residence by investment schemes, otherwise known as ‘golden visas’, offer people the chance to get a residency permit for a country by purchasing a house there or making a large investment or donation.

Any applicants must be over the age of 18, have a clean criminal record and have sufficient funds to make the required investment.

There are also golden passports, known officially as citizenship by investment programs, that allow foreigners to gain citizenship using the same means.

For countries in the EU, this also means gaining access to many of the benefits of being a resident of the bloc – including free movement between countries.

Why is the EU against golden visas and passports?

In 2022, the European Commission called on EU governments to stop selling citizenship to investors.

Though this is different to golden visas, which offer permanent residency rather than citizenship, the call came as part of a move to crack down on this combined multi-billion euro industry. In the wake of the Ukraine war, there were concerns that these schemes could be a security risk.

Brussels also called for countries to double-check whether people sanctioned due to the war were holding a golden passport or visa that they had issued.

In the past, the EU has also said that schemes of this kind are a risk to security, transparency and the values that underpin the European Union project.

In October 2022, the European Commission urged Albania to “refrain from developing an investors’ citizenship scheme (golden passports)”. Such a scheme would “pose risks as regards security, money laundering, tax evasion, terrorist financing, corruption and infiltration by organised crime, and would be incompatible with EU norms,” it warned in a report. The country has since suspended its plans to introduce a golden visa.

Threats also come from outside the bloc. Also in October 2022, the European Commission proposed a suspension of Vanuatu’s visa waiver agreement due to golden passport risks. This is because the scheme enables nationals of third countries to gain Vanuatu citizenship, which then earns them visa-free access to Schengen zone countries.

Which other countries have scrapped their golden visa schemes?

In February 2022, the UK government scrapped its golden visa scheme that allowed wealthy foreign nationals to settle in the country in exchange for bringing part of their wealth with them. The decision to end the scheme came as part of a move to clamp down on dirty money from Russia.

In February 2023, Ireland also axed its golden visa scheme – the Immigrant Investor Programme – which offered Irish residence in return for a €500,000 donation or three-year annual €1 million investment in the country.

Ireland had already suspended the scheme for Russian citizens in March 2022 as part of sanctions imposed on the country for the invasion of Ukraine. The following month, the European Parliament warned that the programme was vulnerable to tax abuse. The final decision to end the scheme was the outcome of various international reports and internal reviews.

Which EU countries still offer golden visas and what are the requirements?

There are only a few places that still offer golden passports in the EU. One of these countries is Malta. Here, the minimum investment amount starts at €690,000 and offers citizenship for between 12 and 36 months.

Many others, however, still offer golden visa schemes. Here are a few examples of exactly how much it costs to get residence by investment in these countries.

Does Spain still offer a golden visa?

Spain launched its residence by investment scheme in 2013. It allowed wealthy people from outside the EU to obtain residency permits on investing more than €500,000 in real estate or certain types of business.

However, in April, the country’s government said it plans to scrap the real estate route – which accounts for 94 per cent of applications – to reduce pressure on the housing market.

Socialist Prime Minister Pedro Sánchez said the reform was part of his minority coalition government’s push to make housing “a right, not a speculative business”.

But more than three months after the initial announcement, the visas are still open to applicants, sparking criticism from Sumar party members who govern in coalition with the Socialist Party.

“Countries such as Portugal, Ireland and Greece have taken measures to end this practice that increases the violation of the right to housing,” MP Alberto Ibáñez said, urging the government to quickly repeal the visa, Europa Press reported.

Soon after, the government doubled down on its promise, saying it will end golden visa for all types of investment – not just for property. This means the option to invest €1 million in shares in Spanish companies or €2 million in government bonds could also be removed.

The government says over 15,000 such visas have been issued since the measure was brought into law in 2013 by a previous right-wing Popular Party government as a means to attract foreign investors.

Since Spain announced plans to end its golden visa, Chinese investors have rushed to buy property in the country, a report by Spanish state broadcaster RTVE revealed.

The visa can also be gained by starting certain types of business in Spain, holding company shares or bank deposits with a minimum value of €1 million in Spanish financial institutions, or making a government bonds investment of at least €2 million.

Hungary golden visa scheme

Bucking the trend, Hungary has announced plans to reintroduce its golden visa scheme on 1 July 2024, after having ended it back in 2017.

The so-called Guest Investor Program (GIP) will offer three routes to residency, including through real estate investment (minimum €250,000), purchasing a residential property (minimum €500,000) or donating at least €1 million to a higher educational institution in the country.

The visa is extended to the spouse and dependent children of the applicant and grants visa-free travel in the EU.

Italy’s golden visa scheme

Italy is another popular destination for those looking to get residence by investment. Introduced in 2017, its golden visa grants non-EU nationals a residence permit for two years in exchange for an investment in Italy.

The minimum investment here is €250,000 which must be done through an Italian limited country. Those holding these visas can also include their family in the application and benefit from a special tax regime.

Once those using the scheme have lived in Italy for 10 years, they can be eligible for citizenship.

Greece’s golden visa scheme

Greece offers golden visas, with one of the quickest processes for gaining residency. Qualifying foreigners can get a permit within 60 days of applying.

It used to have one of the lowest thresholds for investment at just €250,000 spent on property in the country. But the country is raising this to €800,000 in areas facing severe housing shortages, such as Athens, Mykonos and Santorini.

Elsewhere, it will only rise to €400,000 to encourage investment in a wider range of places. The changes are expected to come into force at the end of August 2024.

Golden visa holders aren’t required to stay in Greece to keep their visas.

By the end of 2021, the country had seen 9,500 applications for these residence by investment schemes, one of the highest numbers in Europe.