With many of the golden passport schemes in Europe set to come to an end, the rush is on to secure golden visas before the deadline.
Leading the charge are Americans with a 447% jump in inquiries since 2019. The prospect of a shortcut to EU citizenship, and all the freedom of movement that comes with it, is proving to be a magnet for American investors. Unfortunately, the good times may not last much longer.
The EU has taken an extremely dim view of the Golden Visa or passport schemes and has been putting pressure on members to ditch them. Several have already done so, and more are planning to follow suit. Ireland has ended their golden visa scheme and Portugal has scaled theirs back. Geographical restrictions apply in the property hotspots of Porto and Lisbon in an attempt to stimulate investment across the whole country—and now, the Portuguese government has announced plans to end the program altogether.
Golden Visas became popular after the fiscal crisis in 2008. They were an attempt to attract investment from those outside the EU looking for freedom of movement, a lucrative investment and a nice second or third home.
Portugal, Ireland, Spain, and Greece were among those offering golden visas in Europe. They all worked in roughly the same way. Any person who invested in property or a business over a certain threshold would be on a fast track to right-to-remain status and eventually citizenship.
For example, in Portugal, people had to invest at least 350,000 euros ($375,000) in property and create 10 jobs or pay 1.5 million euros ($1.6 million).
For countries such as Portugal, which are in the EU, this promised the attractive prospect of freedom of movement across all member states. It worked. Investors flooded in from all around the world. Portugal, for example, saw a net inflow of 1,300 millionaires last year.
However, these visas were not without their critics. Many felt the golden visa schemes were driving property prices up and making it more difficult for locals to rent or buy a home.
Portugal’s decision to end the scheme was motivated by housing prices which had begun to spike over the past few years.
More recently, the cost-of-living crisis and economic issues have prompted a change of stance. At a time when many people are struggling to pay their bills, the optics of countries lavishing more perks on the super-rich—often at the expense of local homebuyers—does not sit well.
For anyone with the wealth to purchase property, therefore, the race is on to get in before the door slams shut. However, the death of the golden visa may not be coming as quickly as some people expect. Schemes such as this have been opening and closing for years. There is every reason to think countries will amend or reform golden passport schemes rather than closing them altogether.
At the same time, other sunny spots have been following Europe’s lead with golden passports opening in places such as the Caribbean. Other incentive schemes are also cropping up, such as remote worker schemes that aim to attract remote contractors worldwide. (Find out more about the new Digital Nomad Visas in Portugal and Spain.)
So, whatever happens in the future with golden visas across Europe, wealthy investors from around the globe are still going to find a warm welcome in many countries.
Contact us today to discuss property investment opportunities.
