Concerns about the drawbacks outweighing the benefits of the golden visa program have led to an increasing number of governments taking action to terminate or restrict golden visa applications. While it has become more challenging to obtain a golden visa, the situation varies in each country.
Golden visas, often referred to as “investment residency programs,” allow foreign individuals to obtain temporary or permanent residency in a country by investing in real estate, founding companies, or making donations, enabling them to live and work locally.
The requirements for applying for a golden visa differ from country to country, with some visas being applicable only to wealthy applicants, while others have more affordable requirements.
The biggest potential concern with golden visas is that law enforcement agencies fear the program may fuel criminal activities and breed corruption. Investors from China, Russia, and the Middle East have been using these visas to purchase real estate.
Several European countries have previously introduced golden visa programs, but as they attempt to mitigate the damage of foreign investments on local real estate markets, these visa programs are gradually being phased out or suspended. Particularly after Russia’s invasion of Ukraine, the European Commission has urged governments to terminate golden visas, warning that they could be used for money laundering, tax evasion, or even organized crime.
Facing increasing pressure to address housing crises, Spain announced in April that it would abolish the golden visa program, the latest European country to do so.
According to Reuters, from the start of Spain’s golden visa program in 2013 until November 2022, nearly 5,000 permits were issued. The conditions required non-EU citizens to invest at least €500,000 in Spanish real estate (without the need for a mortgage) to obtain a special permit allowing them to live and work in Spain for three years.
Spanish Prime Minister Pedro Sánchez confirmed that out of every 100 golden visas, 94 were related to real estate investments in major cities such as Barcelona, Málaga, Alicante, Valencia, Madrid, and Palma on the island of Mallorca.
He criticized this as a speculative housing investment model that could lead to disasters or even more severe consequences, exacerbating inequality. He vowed to end the golden visa program and increase the number of affordable housing options accessible to locals.
Abolishing the golden visa in Spain still requires approval from members of parliament for legal modifications.
In a report by Transparency International in 2023, Chinese investors accounted for the largest number of approvals, exceeding half of all golden visas issued by Spain (2,700), followed by Russian investors (1,100).
Portugal canceled real estate-related golden visas in 2023.
In 2012, amidst the most severe period of the European debt crisis, six Eurozone countries, including Portugal and Ireland, introduced golden visas to attract foreign investments by selling residency rights to fill budget deficits and aid in their recovery from the financial crisis caused by the collapse of the real estate market.
By 2023, Portugal canceled the investment channel for obtaining visas through real estate purchases due to the speculative real estate investment issues brought about by the golden visa. However, they still allow eligible foreigners to obtain golden visas through other forms of investment.
In Portugal, investing in qualifying investment funds, scientific research activities worth at least €500,000, or investing in certain activities that create five jobs or maintain ten jobs can lead to a golden visa.
Ireland also canceled the policy of acquiring golden visas through real estate purchases in 2023.
Data from the Irish Department of Justice in 2023 showed that 80% of the approved 306 investor immigrant applications were from Chinese citizens.
In 2012, during the financial crisis, Ireland launched the Immigrant Investor Program (IIP), providing residency visas to foreigners willing to invest in real estate and infrastructure construction. Foreigners can apply for Irish citizenship, i.e., EU citizenship, after residing for five years.
Greece announced in March its plan to raise the minimum amount required for foreign property buyers to obtain a golden visa to €400,000, citing pressures on the property buying and leasing market.
Since launching the golden visa program in 2013, Greece has allowed foreigners to obtain residency permits by investing in local real estate. Most countries permit applicants to seek EU citizenship within a few years.
For those who can meet higher thresholds, Greece’s golden visa remains an option.
The European Commission has been critical of golden visas, citing security risks and the potential for corruption, money laundering, and tax evasion. In 2022, the commission called on member states to address these risks by ending more controversial golden passport programs, especially in Malta and Cyprus, which not only offer residency rights but also citizenship.
Hungary closed its golden visa program in 2017 amid corruption charges. In 2024, it is preparing to reintroduce a new version of the golden visa project, allowing investments of at least €250,000 in local real estate funds or at least €500,000 in property purchases to apply for a renewable ten-year golden visa.
Besides Europe, Australia suspended issuing golden visas to individuals investing over AUD 5 million in January, focusing on creating more visas for “skilled migrants” who can “make significant contributions” to Australia as part of broader immigration policy reforms.
The Australian government found the economic benefits of the golden visa program to be unsatisfactory.
According to Australian government data, since 2012, the Australia Significant Investor Visa (SIV) program has issued thousands of visas, with 85% of successful applicants coming from China.
In the Caribbean region, the threshold for obtaining citizenship through investment has also been raised, with such programs accounting for over half of some small island nations’ national income.
As part of bilateral agreements, some Caribbean passports allow visa-free travel to the UK and the EU. European regulatory bodies have expressed concerns that these programs could be gateways for criminals. Therefore, European governments are exerting pressure on Caribbean countries to limit golden visas.
Dominica, Grenada, St. Kitts and Nevis, and Antigua and Barbuda agreed that starting from June 30, an investment of USD 200,000 can lead to obtaining their country’s citizenship. This figure is double the previous amount. St. Lucia did not sign the agreement and continues to sell citizenship for USD 100,000 through investment.