Why Spain, Portugal, UK, and Other Countries Are Ending Golden Visas While Italy, Greece, Malta, and Others in Europe Retain it

Published on November 16, 2024

By: Rana Pratap

European countries like Spain, Portugal, the UK, and others are phasing out golden visas to tackle issues such as housing affordability, security risks, and concerns over tax evasion, responding to EU pressure to uphold transparency and ethical practices. Meanwhile, Italy, Greece, Malta, and others continue to retain these programs, leveraging them to attract foreign investment and stimulate economic growth, reflecting a divide between nations prioritizing local stability and those capitalizing on global demand for residency pathways.

Golden visas have long offered a fast-track route to European residency for those with significant financial means. These programs allow individuals to gain the right to live, work, and even travel freely within the EU by investing in property, businesses, or other approved avenues. However, as the landscape evolves, these visas are under increasing scrutiny and are being phased out in several countries. Here’s everything you need to know about golden visas, their benefits, and why they’re facing a decline.

What Are Golden Visas?

Golden visas, or residence by investment schemes, let wealthy individuals obtain residency in exchange for significant financial contributions. Investments typically range from property purchases to large donations or business ventures.

Applicants must meet basic requirements:

• Be over 18 years old.
• Have a clean criminal record.
• Prove financial stability to support the required investment.

Some countries even offer golden passports, granting full citizenship. For EU nations, this means access to benefits like free movement across member states.

Why Are Golden Visas So Popular?

Golden visas are attractive for many reasons:

1. Ease of Access: Wealthy applicants can bypass the usual bureaucratic hurdles of gaining residency.
2. Family Benefits: Many programs grant residency rights to immediate family members, allowing them to share in the advantages.
3. Economic Benefits: Investors enjoy tax advantages and access to lucrative markets.
4. Political Stability: For those fleeing unstable regions, golden visas provide security and new opportunities.

In recent years, demand has surged. Americans seeking to escape political uncertainties and Chinese investors looking for property opportunities in Europe have driven up applications.

Why Is Europe Phasing Them Out?

Despite their popularity, golden visas have faced growing criticism. The EU has flagged several concerns, including:

• Security Risks: Authorities worry that these programs enable money laundering, tax evasion, and even terrorist financing.
• Housing Crises: In countries like Spain and Portugal, foreign investments have driven up property prices, making housing less affordable for locals.
• Geopolitical Concerns: The Ukraine war has heightened scrutiny, with fears that sanctioned individuals may hold golden visas or passports.

The European Commission has repeatedly urged member states to stop granting citizenship or residency through these schemes, citing risks to the values and transparency of the EU project.

Countries Phasing Out Golden Visas

Several European nations are scaling back or ending their golden visa programs entirely:

Spain

Spain plans to end its property-based golden visas by January 2025. Since 2013, the program has issued over 15,000 visas, mostly through real estate investments of €500,000 or more. The Spanish government argues this reform will reduce housing speculation and ensure that housing remains a right, not a luxury.

Portugal

Portugal eliminated real estate investment as a qualification in October 2023. The country hopes this change will combat rising property prices while still welcoming business investments.

The Netherlands

The Dutch government ended its golden visa scheme in January 2024, following EU concerns about transparency and security.

Ireland and the UK

Ireland ended its golden visa scheme in February 2023, citing vulnerabilities to tax abuse. The UK scrapped its program in 2022 to crack down on illicit Russian money.

Countries Still Offering Golden Visas

Despite the trend, some countries continue to embrace golden visas:

Hungary

Hungary reintroduced its golden visa scheme in July 2024, offering three investment options:

• Real estate funds (€250,000 minimum).
• Residential property (€500,000 minimum).
• Donations to higher education (€1 million minimum).

Applications are already open, making Hungary an outlier in Europe’s golden visa landscape.

Italy

Italy offers a two-year residence permit for non-EU nationals investing as little as €250,000 in Italian businesses. Families can also benefit, and residents may apply for citizenship after 10 years.

Greece

Greece remains a golden visa hotspot. The investment threshold rose to €800,000 in areas like Athens and Mykonos in 2023, but in less crowded locations, it remains €400,000. Applicants can secure residency in as little as 60 days without needing to stay in the country.

Malta

Malta still grants golden visas and passports. Citizenship requires a minimum €690,000 investment and takes between 12 and 36 months.

Overview of Golden Visa Programs in Europe

The Future of Golden Visas in Europe

Golden visas continue to appeal to investors, but their future in Europe is uncertain. Nations like Spain and Portugal have prioritized local housing and economic stability over attracting foreign wealth. However, countries like Hungary, Greece, and Italy still welcome investors, though changing regulations may limit these opportunities.

For those seeking golden visas, acting quickly is essential. As Europe tightens its grip on these programs, the window for buying your way to residency may soon close.