Only a few EU countries still have the program in place such as Malta, Italy, and Greece.
Dreaming of following in Bea Alonzo’s footsteps of acquiring property in Spain by being a “golden visa” holder?
Well, we hate to be the bringer of bad news, but according to the BBC, the Spanish government has already begun the process of eliminating its “golden visa” scheme.
What is a “golden visa”?
Residence by investment schemes, otherwise known as “golden visas,” offer people the chance to get a residency permit for a country by purchasing a house or making a large investment or donation.
According to an article on Euronews, applicants must be over the age of 18, have no criminal record, and have sufficient funds to make the required investment.
Under Spain’s “golden visa” program, foreign investors in the country were provided with fast-tracked residency that can be obtained in exchange for buying property worth at least €500,000 (£428,000).
The “golden visa” scheme also provided residency in exchange for investing €2m (£1.7m) or more in state bonds, or for investing in emerging Spanish companies.
The visa scheme was created in 2013 by the conservative government of Mariano Rajoy as a means of attracting “badly needed” foreign investment in the wake of the eurozone crisis, which pummeled Spain’s property sector.
However, only 6 percent of visas were awarded for reasons other than the purchase of property.
As of 2023, a total of 6,200 visas had been issued for investment in property, according to the organization Transparency International. Other sources put the number higher.
Almost half of the beneficiaries or a total of 2,712 are Chinese. Russians come in second with 1,159, followed by Iranians (203), and citizens of the US (179) and the UK (177).
Aside from ‘golden visas,’ there are also ‘golden passports,’ known officially as citizenship by investment programs, that allow foreigners to gain citizenship through the same procedures.
For countries in the EU, this also means gaining access to many of the benefits of being a resident of the bloc—including free movement between countries.
Why is it being axed?
At a Cabinet meeting early this April, ministers agreed to end the awarding of the said visa. Prime Minister Pedro Sánchez said his government’s intention to scrap the scheme was intended “to guarantee that housing is a right and not merely the subject of business speculation.”
Sánchez noted the majority of visas awarded were linked to the purchase of properties in places wherein the housing market is already “under enormous pressure,” such as Madrid, Barcelona, Valencia, Málaga, Alicante, and the Balearic Islands. These are also places where it is “almost impossible” for locals to find affordable housing.
Some areas of the country have been particularly affected by rising rents, such as Ibiza on the Balearic Islands.
In response to this, the government in 2023 introduced a housing law which aimed to cap rental increases in areas where they have become out of control.
The Prime Minister’s left-wing allies in his coalition government had also been calling for an end to the visa system.
Critics, meanwhile, say its elimination will not improve matters.
“The problem with housing in Spain, both in terms of sales and rental, is not caused by the golden visa, but rather by the increasing lack of supply [of housing] and the accelerating growth in demand,” said Francisco Iñareta of the Idealista property portal, as quoted in the same BBC article.
However, pressure has also come from beyond the borders of Spain, with the European Commission calling on EU members to clamp down on such schemes, in great part because of security concerns, especially since Russia’s invasion of Ukraine.
In the past, the EU has also said that schemes of this kind are “a risk to security, transparency, and the values that underpin the European Union project.”
In 2022, the UK ended a scheme allowing wealthy foreign nationals to settle in the country if they brought assets with them.
The following year, Ireland scrapped its golden visa, while Portugal revised its own version of it, no longer allowing residency in exchange for property purchases.
The Netherlands also ended its golden visa scheme in January 2024.
Which countries still have the program in place?
If you are really keen on doing a Bea Alonzo and securing yourself a ‘golden visa’ or a ‘golden passport,’ don’t fret as there are still a few places in the EU that offer these opportunities.
One of these countries is Malta. Here, the minimum investment amount starts at €690,000 and offers citizenship for between 12 and 36 months.
Love Italian culture, especially its famed cuisine? Italy is another popular destination for those looking to get residence by investment. Introduced in 2017, its golden visa grants non-EU nationals a residence permit for two years in exchange for an investment in Italy amounting to no less than €500,000 which must be done through an “Italian limited country.”
Those holding these visas can also include their family in the application and benefit from a special tax regime. Once those using the scheme have lived in Italy for 10 years, they can be eligible for citizenship.
Looking to spend the rest of your life basking under the Mediterranean sun? Well, Greece also offers golden visas, with one of the quickest processes for gaining residency. Qualifying foreigners can get a permit within just 60 days of applying.
It used to have one of the lowest thresholds for investment at just €250,000, however in September, authorities raised this to €500,000 to increase the affordability of real estate for locals.
The update is implemented in the Greater Area of Athens, the Municipality of Thessaloniki, and the islands of Mykonos and Santorini, but the €250k threshold is the same in other regions.
Golden visa holders aren’t required to stay in Greece to keep their visas. By the end of 2021, the country had seen 9,500 applications for these residence by investment schemes, one of the highest numbers in Europe.
