In recent years, many European countries have been tightening their immigration policies. At the same time, investors from Asian countries such as China and India still seek to obtain residency and establish a foothold in Europe to preserve their wealth.
Portugal’s parliament voted on October 28th to extend the validity period for naturalization of “Golden Visa” holders from 5 years to 10 years starting from January next year. Previously, Portugal had already abolished the pathway to residency and citizenship through real estate investment in 2023.
In April last year, Spain announced the discontinuation of its “Golden Visa” program. At a cabinet meeting held on April 9th of that year, the country’s ministers agreed to terminate the visa program. The day before, Spanish Prime Minister Pedro Sanchez stated that the country would abolish the “Golden Visa” program for foreign property buyers to alleviate local housing pressures.
In April this year, a lawsuit against Malta’s “Golden Passport” program led to a ruling by the Court of Justice of the European Union (CJEU) that deemed the program commercializing EU citizenship contrary to EU fundamental principles.
The termination of Malta’s citizenship by investment program highlights the increasing pressure faced by countries to cease providing such convenient pathways.
The European Commission hopes that European countries will tighten their Golden Visa programs to curb illegal fund flows and reduce real estate prices.
In June 2024, the EU passed the Sixth Anti-Money Laundering Directive, requiring Golden Visa applicants to undergo stricter due diligence checks.
Anna Terrone, a policy officer at Transparency International, stated, “These ‘Golden Passport’ programs have repeatedly shown that they could be used as channels for money laundering, posing corruption, money laundering, and security risks to the EU.”
She added, “We hope that the ruling of the EU court (regarding Malta) will encourage other member states to regulate investment residency programs and put an end to abuse of investment citizenship programs within the EU.”
The “Golden Visa” was introduced in Europe in the late 2000s following the sovereign debt crisis to attract foreign direct investment, granting non-EU citizens the right to reside and work in the issuing country and the right to free movement in 29 European countries. The “Golden Passport” goes a step further, granting citizenship to investors through payment of fees and/or investments.
According to data from Spain’s Ministry of Inclusion, Social Security and Migration, the country registered 3,500 residence permits in 2023 to support Chinese entrepreneurs, with approximately 95% investing in real estate.
In August, as reported by The South China Morning Post, nearly 8,000 Chinese citizens obtained Greek Golden Visas in just June, becoming the country’s largest foreign immigrant group.
Murat Coskun, managing partner of Get Golden Visa, an investment visa solution provider, said, “Chinese investors mainly see residency as a hedging and wealth preservation alternative to protect their interests, rather than seeking citizenship, as China does not allow dual nationality.”
He mentioned, “Indians also seek residency due to restrictions on dual nationality, while Southeast Asian investors often seek citizenship as their home countries allow dual nationality.”
Coskun noted that Chinese investors still show strong interest in Greece, and despite changes in Malta’s residency program in April, there is still steady demand.
He also mentioned Latvia, where the investment threshold is low at just €50,000 (approximately $58,000), plus a €10,000 country fee, with a five-year residency permit that can be extended.
Expecting stricter regulations, Coskun anticipates that countries will reduce pathways to residency but provide higher-quality investment opportunities under stricter compliance conditions.
He said, “We will see a shift from the simple ‘buy property for residency with a Golden Passport’ to more structured, regulated investments and a more substantial contribution to the host country.”