Your Golden Visa Questions Answered

European Golden Visas: A Guide for Investors

Residence by Investment (RBI) programs, often called "golden visas," have significantly changed in Europe. While Portugal's pioneering 2012 program initially boosted its economy, many countries, including Portugal and Spain, are now restricting or eliminating real estate investment as a pathway to residency. Despite this, Portugal's Golden Visa continues, prompting investors to consider its ongoing value.

These programs, which have generated billions, offer a streamlined route to EU residency. Other European nations are considering similar initiatives, presenting various options for investors seeking EU residency and potential citizenship.

What are Golden Visas?

Golden visas are investment-based residency programs offering quick access to EU residency. They provide access to high-quality living, Western culture, and the potential for a powerful EU passport. While not a guarantee of citizenship, they facilitate meeting residency requirements for naturalization. It's crucial to distinguish genuine EU programs from those falsely marketed as "golden visas."

What is the the difference between Residency and Citizenship?

Most EU programmes will start with residency that can, at some point, be changed to citizenship. Residency gives you the right to live, work and retire in your desired country. This often includes access to pensions and healthcare.

After a certain period of time, in some of the available programmes, this can be changed to citizenship. This will then give added benefits, most notably in Europe. Becoming a citizen will give you a passport to that country, allowing unrestricted access to the whole of Europe and the right to live and work in all of these countries. Essentially it is like holding 27 passports in 1.

The following chart shows the different available programmes along with their inclusive criteria:

Available Citizenship and Residency programmes along with qualifying criteria

Why Choose a Golden Visa?

Golden visas simplify immigration, bypassing typical requirements like job offers, business plans, or language exams. While future citizenship may involve additional criteria, the process is generally faster than traditional immigration routes, attracting high-net-worth individuals.

Golden Visas vs. Golden Visas Other EU Visas - Why chose the Golden Visa?

Golden visas differ from standard travel visas in three key ways:

• Speed: Applications are processed quickly, often within months.

• Accessibility: Eligibility criteria are less stringent than citizenship-by-investment programs.

• Transparency: Requirements, fees, and eligibility are clearly defined.

  
  

What are the benefits of a European Golden Visa?

• Visa-free travel within the Schengen Area.

• New investment and lifestyle opportunities.

• A "Plan B" for security and stability.

• Family inclusion in the residency process.

• Flexible residency requirements.

• Pathway to EU citizenship.

  
  

Drawbacks and Considerations

While attractive, golden visas may involve taxation. Tax residency is typically triggered after 183 days of residence. Proper financial planning is essential to manage tax obligations. Citizenship usually requires physical residency, which then triggers local taxation.

Who Benefits from Golden Visas?

• US citizens seeking EU citizenship.

• Citizens of countries with limited passport power.

• Business owners and investors looking to expand into Europe.

  
  

Alternatives to Golden Visas?

Other residency options exist, such as proving financial assets, obtaining employment, marriage to a citizen, or starting a business. However, golden visas are often simpler.

Qualifying for a Golden Visa?

Common investment options include:

• Real Estate: Though decreasing in availability.

• Business and Enterprise: Encouraging foreign entrepreneurship.

• Financial Instruments: Investing in bonds, stocks, or funds.

• Donations: Direct contributions to government funds.

  
  

The Golden Visa Process

While designed for speed, the process can be complex and time-consuming. Fees can be high, and processing times may vary. Countries may adjust requirements and fees, so thorough research is essential. It is possible to obtain the golden visa for less than the programmes stated criteria by using investments that offer interest or rent upfront. Whatever your requirements, it is essential that you obtain quality advice from an expert to ensure that the investment is right for you.