European Union’s Golden Visa Programs – offering foreigners the opportunity to acquire residency in exchange for financial investment- continue to remain popular among wealthy investors from countries worldwide.
In spite of the European Commission’s ongoing calls addressed to EU governments running such schemes to terminate them, following allegations of their involvement in irregular affairs such as money laundering and corruption, several EU countries continue to operate Residency by Investment Programs, known as Golden Visa Programs.
However, rules to acquire residency through this program differ among European countries.
In a bid to deal with the housing crisis, some EU countries such as Portugal and Spain, have abolished the real estate investment option, which is among the most famous options of this program.
However, other options for benefiting from this scheme continue to remain effective.
Hungary
From July 1 this year, Hungary relaunched its Golden Visa Program, after being terminated in 2017.
Known as the Guest Investor Program (GIP), the scheme permits internationals to acquire residency in this country by real estate option as well.
Acquiring residency through the GIP can be done by purchasing a real estate unit for at least €250,000 and purchasing a residential property for €500,000.
Another option offered through this program is donating at least €1 million to a higher educational institution in the country.
Greece
Among the requirements for benefiting from Greece’s Golden Visa Program is to make a financial contribution of at least €250,000.
Investing in real estate is possible through this scheme. While the minimum amount required to benefit from this scheme is €250,000, in some parts of the country the minimum amount has increased to €800,000. Such a decision was taken in a bid to deal with the housing crisis.
Countries That Have Removed Real Estate Options From Their Golden Visa Schemes
In Europe, the housing crisis has brought significant concerns in several countries. The housing crisis consists of shortages as well as escalating rents.
About 70 per cent of EU residents own their homes, the remaining 30 per cent rent, while about 17 per cent of the EU population lives in overcrowded conditions, according to a report from Euro News.
In a bid to deal with the housing crisis, some EU countries have abolished the real estate investment option from their Golden Visa Programs.
Spain
In order to acquire residency in Spain through the Golden Visa Program, wealthy foreign nationals are eligible to make a capital investment in Spanish companies and government bonds or bank deposits in Spain.
Madrid offered golden visas in exchange for a real estate investment of at least €500,000. However, since April this year, such an option is no longer eligible.
Announcing the decision, the President of the Government, Pedro Sanchez, said that his country would take the needed measures to guarantee that housing is a right and not “a mere speculative business”.
I want to announce that tomorrow’s Council of Ministers is going to study a report submitted by the Minister of Housing and Urban Agenda to modify the law, approved by the Popular Party in 2013, which allows obtaining a residence visa if you invest in housing in our country.
Italy
Known as the Investor Visa for Italy, the residency-by-investment program permits non-EU nationals to reside legally in this country.
- Applicants can choose one of the following options in order to benefit from this scheme:
- Investing at least €2 million in government bonds
- At least €500,000 in corporate bonds or shares
- A minimum of €250,000 in innovative startups
The Italy Golden Visa program does not provide a real estate investment option; however, internationals can apply for a residency by investing in real estate through the Company Startup option.
Portugal
Lisbon offers residency to internationals through the Golden Visa Program by choosing one of the following options:
- Investment in research and developments
- Cultural Heritage Donation
- Investment in funds or venture capital funds
Recently, authorities in Portugal announced that they would introduce the Residence Permits for Social Investment option, to expand the categories through which foreign nationals can acquire residency through RIP.
In a bid to deal with the housing crisis, Portugal also removed the real estate option from its Golden Visa scheme.
