July 30th, 2024 at 02:53 pm

EU Golden Visa Programs: New Investment Options for Residency in 2024

Rich investors are drawn to the EU’s Golden Visa Programs by offering financial gains in exchange for residency. These schemes continue to be popular despite worries about money laundering and corruption. Learn about the most recent developments, such as new possibilities in Portugal, Greece, Spain, Italy, and Hungary, as well as the reasons why certain nations are terminating their programs.

The European Union’s (EU) Golden Visa Programs present a special chance for foreign nationals to obtain residency in exchange for financial investment. Many EU nations still run similar programs, despite recommendations from the European Commission to stop them because of accusations of money laundering and corruption.

Why Are Golden Visas Changing and What Do They Mean?

Certain European nations offer residency permits known as “golden visas” in exchange for investments. Historically, investing in real estate was a common choice. Nonetheless, the regulations are changing as a result of housing issues in several nations.

Here’s a thorough overview of the several Golden Visa programs offered around Europe, along with the most recent updates and accessible choices.

1. Hungary

Relaunch of the Guest Investor Program: After being discontinued in 2017, Hungary has brought back the Golden Visa Program, also known as the Guest Investor Program (GIP). With effect from July 1st of this year, foreign nationals can get residency through a variety of investment possibilities thanks to the GIP:

• Real Estate Investment: Invest at least €250,000 on a real estate unit and €500,000 on a residential property.
• Donation for Education: Provide a minimum of €1 million to a Hungarian higher education institution.

2. Greece

Inexpensive Real Estate Investment: One of the less expensive choices in Europe is the Golden Visa Program offered by Greece. To be eligible, investors must:

• Minimum Investment: Make a real estate contribution of at least €250,000.
• Raised Thresholds: To alleviate the housing crisis, the minimum investment amount in some regions of Greece has been increased to €800,000.

3. Spain

A transition from Alternative Investments to Real Estate: As of April of this year, Spain has eliminated the real estate investment option from its Golden Visa Program in reaction to the housing crisis. Rich foreign nationals can now, instead, invest in:

• Capital Investments: Put money into bank accounts, government bonds, and Spanish businesses.
• Government Bonds: A €2 million minimum investment is required.
• Enterprise Debt or Equity: A minimum of €500,000.
• Innovative Startups: €250,000 as a minimum.

4. Italy

Various Investment Opportunities: The Investor Visa for Italy, Italy’s residency-by-investment program, provides several investment opportunities. These include:

• Invest a minimum of €2 million in government bonds.
• Corporate Shares or Bonds: €500,000 is the minimum investment.
• Innovative Startups: Make a minimum €250,000 donation.
• Company Startup: Use this method to apply for residency by making real estate investments; nevertheless, the Golden Visa does not specifically encourage real estate investment.

5. Portugal

Extending Investment Categories: Portugal’s Golden Visa program no longer offers real estate investment as a possibility. Rather, the program now consists of:

• Investment in scientific and technological undertakings is known as research and development.
• Donating to the preservation of cultural sites is known as cultural heritage donation.
• Funds: Investing in particular financial products; sometimes known as venture capital funds.
• Social Investment: A wider range of eligible investments is now possible with the recently implemented Residence Permits for Social Investment option.

Countries Ceasing Their Programs for Golden Visas

Certain EU nations are discontinuing their Golden Visa programs in response to mounting worries about money laundering, corruption, and the housing crisis. Leading contenders include:

1. Ireland: The nation has entirely discontinued the Immigrant Investor Program, also known as the “golden visa.” This decision was made due to concerns about potential abuse, transparency, and governance.
2. Portugal: The country’s Golden Visa program has been considerably restricted, while it hasn’t been eliminated. The nation is concentrating on investment categories like research and development that have a more immediate impact on the economy.

Concerns over property inflation and its effects on locals have prompted similar policies to be considered in other nations, such as Spain and Cyprus. It’s important to note that the European Commission has expressed concerns about the possible abuse of these programs and has urged member states to stop using them to prevent illegal activity.

Nations Tackling the Housing Crisis

Many nations have eliminated the real estate investment option from their Golden Visa programs in response to the European housing crisis. The problem, which affects both homeowners and renters, is typified by a lack of available housing and rising rents.

• Housing Ownership: Thirty percent of EU citizens rent, while seventy percent own their homes.
• Overcrowding: Approximately 17% of EU citizens reside in overcrowded housing.

Last Words

In conclusion, foreign investors have access to multiple avenues for residency under the EU’s Golden Visa Programs. Even though several nations have implemented major reforms to address housing issues, the initiatives still draw affluent investors looking to settle in Europe.