What are ‘golden visas’ and which EU countries hand them out?

Obtaining the right to live and work in a foreign country can be a difficult and lengthy process for many, but not for those who have the means to invest in a golden visa. These visas allow wealthy individuals to purchase residency in a country, sometimes without the need to live there. As a result, their popularity in the European Union has been on the rise as people seek to leave behind political uncertainties such as Brexit that may limit their rights.

With the current unsettled political and social climate in the US, applications for golden visas from Americans are expected to increase, with the passporting firm Get Golden Visa predicting its busiest year in 2022.

Despite this, golden visa schemes are slowly being phased out across Europe, with Portugal being the latest country to scrap the program in February 2023. This move has been strongly criticized by the autonomous region of Madeira.

So what exactly are golden visa schemes, and why has the EU raised concerns about their safety in recent months?
Golden visas, also known as residence by investment schemes, allow individuals to acquire a residency permit for a country by making a large investment, donation, or purchasing a house in that country.

Applicants must be over 18 years old, have a clean criminal record, and possess sufficient funds to make the necessary investment. Similarly, golden passports, known as citizenship by investment programs, allow foreigners to gain citizenship using the same means. In the EU, this means gaining access to many of the benefits of being a resident of the bloc, such as free movement between countries.

The European Commission has called for an end to the sale of citizenship to investors, expressing concern that such programs could pose security risks, especially in the wake of the Ukraine war. It has also warned against the potential risks of tax abuse, money laundering, and corruption associated with these schemes.

Several countries have already scrapped their golden visa schemes, including the UK, Ireland, and Portugal, while Malta still offers a golden passport program. Spain and Italy offer golden visa schemes that require a minimum investment of €500,000 ($550,000), with Greece offering a quicker residency process for a minimum investment of €500,000 as well.