Spain,Portugal and Switzerland phase out the Golden Visa Scheme while Hungary reintroduces it ,boosting travel sector

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The European Union has begun to phase out golden visa programs, yet one country is choosing to reinstate its version of this scheme.

Securing the right to live and work abroad can bea complex, time-consuming process, especially for those without substantial financial means. However, wealthy individuals often have an alternative route: golden visas.

Golden visas offer affluent applicants the chance to obtain residency, often without even having to reside in the host country. Demand for these visas in the European Union has increased, driven by those seeking stability amid global uncertainties, including Brexit.

In recent years, political and social shifts in the United States have also contributed to rising interest from American applicants seeking golden visas.

But now, Europe is largely moving to end these programs.

Spain recently finalized legislation to eliminate golden visas tied to property investments, with the ban likely starting by January 2025. Although the proposal is still under debate, it may expand to other forms of investment.

Similarly, in October 2023, Portugal removed real estate from its golden visa qualifications to curb property inflation.

Following suit, the Netherlands ended its golden visa program in January 2024.

In a rare exception, Hungary has revived its golden visa scheme, opening applications this month.

Applicants must be at least 18, hold a clean criminal record, and meet minimum investment requirements.

In addition to golden visas, some countries also offer “golden passports,” or citizenship by investment programs, allowing foreigners to gain citizenship through substantial financial investments.

In the EU, golden passport holders enjoy the benefits of free movement and other residency privileges.

EU Concerns Over Golden Visas and Passports
In 2022, the European Commission called on EU nations to end citizenship-for-investment programs, citing security risks and transparency issues. Although golden visas only offer residency, not citizenship, they are part of a multi-billion euro industry the EU aims to regulate. Concerns over security intensified after the Ukraine conflict, with Brussels urging member states to reassess if sanctioned individuals held golden passports or visas.

The EU has also expressed concerns about these programs as potential avenues for money laundering, tax evasion, and corruption. In 2022, the European Commission advised Albania against adopting such a scheme, highlighting security, money laundering, and organized crime risks.

Risks aren’t limited to EU countries. For example, in 2022, the EU moved to suspend Vanuatu’s visa waiver due to its golden passport program, which grants visa-free Schengen access to Vanuatu citizens, raising concerns over third-country nationals entering the EU under this status.

Similarly, in early 2022, the UK scrapped its golden visa scheme over concerns about illicit funds, especially from Russian sources. Ireland followed in early 2023, ending its Immigrant Investor Programme, which required either a €500,000 donation or a three-year investment of €1 million. Ireland had already suspended the scheme for Russian applicants in 2022.

Which EU Countries Still Offer Golden Visas?
Only a few EU nations still have active golden passport programs. In Malta, citizenship by investment starts at €690,000, taking 12 to 36 months to complete.

Meanwhile, some EU countries still offer golden visa schemes. Here are a few examples and their costs for obtaining residency through investment.

Spain’s Golden Visa Status
Spain launched its residence-by-investment scheme in 2013, allowing non-EU nationals to obtain residency through investments of over €500,000 in real estate or specific businesses.

However, Spain announced in April that it intends to eliminate real estate as a qualifying investment for golden visas, with Prime Minister Pedro Sánchez arguing that housing should be a right, not an investment commodity. The decision still faces opposition in Parliament, but a final ruling is expected by January 2025, with current applications still being honored.

Following Spain’s announcement, Chinese investors reportedly accelerated property purchases to secure visas.

Spain also allows golden visas through investments in Spanish companies, bank deposits of €1 million, or government bonds worth at least €2 million. However, the potential ban could impact these options as well.

Hungary’s Golden Visa Program
Countering the trend, Hungary reintroduced its golden visa scheme in July 2024. Known as the Guest Investor Program (GIP), the scheme offers three routes to residency: investing a minimum of €250,000 in real estate funds, purchasing property for at least €500,000, or donating €1 million to a Hungarian educational institution.

This visa extends to the applicant’s spouse and dependent children, granting visa-free travel within the EU.

Italy’s Golden Visa Program
Italy’s golden visa program has been in place since 2017, allowing non-EU investors to secure a two-year residence permit with a minimum €250,000 investment through an Italian limited company. Golden visa holders can include family members on their permit and enjoy a unique tax regime. After ten years, they may qualify for Italian citizenship.

Greece’s Golden Visa Program
Greece has one of the quickest paths to golden visas, issuing residency permits within 60 days of application. The minimum investment for property was initially set at €250,000 but rose to €800,000 in high-demand areas like Athens and Mykonos in 2023, with a €400,000 threshold elsewhere to encourage diverse investments.

Golden visa holders in Greece are not required to reside there to maintain their permits.

By the end of 2021, Greece had one of the highest numbers of golden visa applicants in Europe, with approximately 9,500 applications for its residence-by-investment scheme.