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The growing prevalence of European Golden Visas

The growing prevalence of European Golden Visas


7th May 2024

Citizenship Invest / Business News / May – 07 – 2024 , 03:43

The growing prevalence of European Golden Visas

European Golden Visas typically grant individuals the freedom to travel and reside in the host countries.

In an era of globalisation and mobility, residency by investment or Golden Visa programs have transcended borders, offering individuals and families unprecedented opportunities for personal and generational growth.

Golden Visas from European countries are at the forefront of this trend, and it has witnessed a surge in prevalence and popularity in recent years — owing to its exceptional ability to unlock access to a European lifestyle.

While the exact origin of Golden Visas cannot be pinpointed to a single source, it is believed to have roots in initiatives from the Caribbean in the 1980s. These initiatives offered citizenship in exchange for foreign investment to stimulate their economies.

Today, Golden visas or residency by investment have become essential components of having a Plan B. Many European countries offer residency in exchange for a lucrative investment, typically starting at EUR 250,000.

Among the most popular nations are Portugal, Greece, and Spain, where residency-by-investment initiatives have contributed 10% to 15% of their Foreign Direct Investment (FDI) over the years.

Other European countries are also gaining traction for their attractive and inclusive schemes. Hungary’s Residency by Investment Program offers residency to non-EU nationals, with 2024 amendments requiring a minimum of EUR 250,000 investment in real estate funds or purchase a residential property for EUR 500,000.

Italy’s Golden Visa can be obtained by investing EUR 250,000 minimum in a start-up or invest EUR 500,000 in an Italian Joint Stock Company.

Latvia’s Residence by Investment Program provides foreign investors various paths to residency, including real estate purchase of at least EUR 250, 000, business investment from EUR 50,000, and bank deposit with a minimum value of EUR 280, 000.

Depending on the country’s program, investors can choose various investment routes, including real estate, businesses, funds, bank deposits, or donations.

Investment routes are continuously modified by respective countries to optimize their Golden Visa programs.

Portugal is a prime example, with its Golden Visa program launched in 2012, primarily focused on real estate investment has undergone several legislative changes over the years.

Recent changes, effective July 2023, removed real estate investment as an option and investors can still obtain the Portuguese golden visa by investing in funds, scientific research, arts and culture, or job-creating companies in Portugal.

The minimum investment begins at EUR 200,000. Spain recently made an announcement regarding amendments to its program.

However, until the law is officially passed, the Spain Golden Visa can still be obtained by investing in real estate starting from EUR 500,000.

Choosing the right investment in the best country suitable for you can seem challenging, having the right partner to guide you is crucial.

Citizenship Invest is a trusted partner in legally obtaining Golden Visa from an EU country.

A deeper look at the undeniable benefits 

Despite the cost associated with the Golden Visas, these programs are largerly seen as a “golden ticket” for high-net-worth individuals seeking alternative residency in a better country.

An industry report highlighted the notable increase in millionaires relocating to other countries, reaching 128,000 by 2024, compared to 51,000 in 2013.

Freedom of movement

European Golden Visas typically grant individuals the freedom to travel and reside in the host countries, they often allow free mobility and access the 27 European Schengen states for up to 90 days in any 180-day period.

Many of the visa programmes allow holders to live and work in countries or regions that may have complex or cost-prohibitive visa processes.

In an increasingly uncertain world, Golden Visas are providing a haven for individuals and their families against political instability, economic turmoil, and other unforeseen challenges enabling them to safeguard their capital and provide investment opportunities in a financially sound environment.

Europe has maintained its reputation for being a safe space for investors through strong regulation, stable inflation currency, and clear and well-defined taxation rules.

Economic opportunities

EU Golden Visas pave the way for new business investment ventures and employment opportunities, fostering economic and career growth.

Investing in a prime location, has clear benefits separate from the resulting residency and citizenship advantage, as for example, real estate is considered a wise investment in the long term.

Golden Visas offer access to a high quality of life, including top-tier educational institutions for academic and career advancement and access to world-class healthcare systems.

Additionally, Golden Visa programs provide appealing retirement options, enabling individuals to enjoy their golden years in desirable destinations with excellent living conditions.

Golden Visas offers a strategic tool for legacy planning, allowing individuals to secure and preserve their wealth for generations to come.

Golden Visa destinations often feature favourable tax regimes, providing significant tax benefits for residents and investors.

An industry report highlighted that 6,705 Americans renounced their citizenship in 2020 to relocate to other countries, with tax mitigation cited as a primary motive for some of these millionaires.

Path to Citizenship

Most European Golden Visas can lead to European Citizenship after fulfilling certain conditions, which vary depending on the specific program.

These conditions typically include physical residency requirements, language tests, established ties in the community, and a clean criminal record.

Unlocking your personal and professional potential

Golden Visas offer more than just a legal pathway to residency and citizenship in Europe; they symbolize a gateway to a world of opportunities whether seeking free mobility, a higher quality of life, or paving the way for a better tomorrow for future generations.

By choosing European residency programs, individuals and families can unlock their personal and professional potential in sought-after destinations across the continent.

 

Source - Graphic Business News