For empty nesters considering a fresh start abroad, Citizenship by Investment Programs, affectionately dubbed as “golden visas,” presents an enticing opportunity. These programs enable foreigners to secure a long-term or permanent residence permit in a new country by making a specified investment in the local economy. This option holds particular allure for those looking to diversify their finances, explore new horizons, elevate their lifestyle, or even obtain a second citizenship.
Last year, 2023 witnessed significant changes in the realm of investment migration, with governments worldwide adjusting rules and procedures governing golden visas. Some nations even chose to discontinue their golden visa offerings, citing concerns about security within their borders.
Moving into 2024, the landscape of investment migration has changed, It’s essential for empty nesters considering relocation to grasp the nuances of these programs to make informed decisions. Let’s delve deeper into the current state of golden visa programs and what prospective applicants can anticipate in terms of requirements and benefits.
AUSTRALIA
‘Golden Visa’ Halted
Australia has pressed pause on its “golden visa” initiative, known as the Significant Investor Visa, with all application processes halted. This decision comes as part of a broader overhaul of the migration system, aiming to prioritize skilled migrants who can address occupational shortages and contribute to the nation’s progress.
Under the Significant Investor program, affluent individuals could secure permanent residency by making a substantial investment, typically exceeding A$5 million, in the Australian economy. However, the scheme has come under scrutiny for its perceived failure to deliver anticipated economic gains. Concerns have been raised that investments often flowed into real estate or financial assets rather than sectors vital for productive growth.
Clare O’Neil, the Australian Home Affairs Minister, emphasized that the visa program did not align with the nation’s economic needs and migration goals. She highlighted the financial burden incurred by the country, particularly as many visa holders tended to settle in Australia during their retirement years, contributing minimally to the workforce.
Australia’s move reflects a global trend of reevaluation and criticism surrounding similar golden visa programs. Allegations of exploitation by wealthy individuals and a lack of substantial benefits for host countries have plagued such initiatives worldwide.
SPAIN
Changes in 2024
Spain stands out as a prominent destination for golden visas in Europe, having introduced its program on September 27, 2013, which has since garnered increasing popularity.
In the past four years alone, over 10,000 individuals have acquired the golden visa by directly investing in Spanish property, necessitating a minimum investment of EUR 500,000 in one or multiple properties. Alternatively, investments in other assets, such as shares of Spanish companies or government bonds, are permissible, albeit at higher investment thresholds. Analysts anticipate further growth in the program’s uptake, particularly with Portugal altering its equivalent investment scheme.
Apart from the financial investment, applicants must spend a minimum of 183 days residing in Spain to qualify for Spanish citizenship through the Golden Visa within a period of 2 to 10 years.
Anticipated adjustments to the Spanish golden visa program may include raising the minimum investment requirement to EUR 1 million and mandating investors to maintain legal residency in Spain for at least six months annually, along with maintaining a clean criminal record. While specific implementation dates for these changes remain undisclosed, it’s speculated that they could take effect later this year. Stay tuned for further updates on these potential reforms.
HUNGARY
New golden visa program launched January 2024
Hungary has unveiled its latest golden visa initiative, dubbed the “Guest Investor Residence Permit,” targeting non-EU and non-EEA nationals seeking permanent residency in Hungary, coupled with visa-free travel across other European Schengen area countries. The program presents diverse investment avenues, including real estate acquisitions and contributions towards educational, scientific, artistic, or creative endeavors within the nation.
Enacted in late 2023 and officially launched on January 1, 2024, the Hungarian golden visa application process is scheduled to commence on July 1, 2024. To qualify, applicants must fulfill specific investment criteria, which include:
- Investing EUR 250,000 in certificates issued by a real estate fund registered with the National Bank.
- Directly investing EUR 500,000 in unencumbered Hungarian residential real estate.
- Contributing EUR 1 million to support educational, scientific, artistic, or creative activities through an institution of higher learning maintained by a public interest trust foundation.
Securing a Hungarian Golden Visa involves a streamlined process. Initially, applicants apply for a 2-year Guest Investor Visa, enabling them to spend 90 out of 180 days in Hungary. Subsequently, investors must complete their chosen investment within 93 calendar days of entry to obtain the golden visa card and a 10-year residence permit.
The application timeline is estimated at approximately two months, with consideration given to legal, application, and processing fees, which vary based on the investment type and number of dependents.
It’s worth noting that Hungary previously offered a straightforward permanent residence program, requiring an investment of EUR 300,000, which has since been discontinued.
As the Hungarian government finalizes decree details outlining the investment requirements, we’ll closely monitor developments for updates. Be sure to check back for the latest information.
PORTUGAL
New Investment Routes for 2024
With a primary aim to stimulate foreign investments that bolster the Portuguese economy, the golden visa remains a unique pathway to a European Union passport without necessitating a minimum 6-month residency at its investment level. Notably, it stands alone in requiring neither active management from investors nor donations to the government.
However, significant adjustments were introduced in October 2023, although these changes do not retroactively affect existing applications. Notably, real estate investments have been excluded as viable options. Presently, applicants for Portugal’s golden visa can explore various avenues, including:
- Investing in funds (exceeding EUR 500,000).
- Establishing a business generating a minimum of ten jobs.
- Contributing EUR 500,000 or more to research activities conducted by public or private research institutions.
- Supporting initiatives focused on the restoration or preservation of national cultural heritage (with investments starting from EUR 250,000).
- Founding a company with authorized capital of EUR 500,000 or more, employing at least five individuals.
Additionally, the Portuguese government recently announced that the duration of the Golden Visa application period (ranging from 6 to 18 months) will now count toward the 5-year qualifying period for Portuguese citizenship. This adjustment is poised to significantly expedite the process of obtaining both citizenship and associated rights to reside in the European Union.
ITALY
Italy boasts one of the most innovative and competitive golden visa programs in Europe. This program offers four distinct investment avenues:
- Investing 2 million euros in Italian government bonds.
- Investing EUR 500,000 in an Italian limited liability company.
- Investing EUR 250,000 in an Italian innovative startup.
- Making a donation of 1 million euros to a charity initiative in Italy.
Moreover, participants in the program can relocate to Italy with their families. Following 10 years of residency based on the permit, individuals become eligible to apply for citizenship through naturalization.
GREECE
Extension of Golden Visa Transitional Period
Introduced in 2014, the Greece Golden Visa program offers applicants a 5-year residency visa with a minimum investment threshold of €250,000, with real estate acquisition being the preferred investment avenue, encompassing both residential and commercial properties.
On December 11th, 2023, a legislative proposal was presented to the Greek Parliament, aiming to extend the golden visa program for non-EU nationals. Key provisions of the proposal include:
- Extension of Investment Completion Deadline: Non-EU nationals intending to invest in designated areas (Greater Athens, Thessaloniki, Mykonos, Santorini) have until April 30th, 2024, to finalize their investments, provided they meet the existing minimum investment requirement of EUR 250,000.
- Eligibility Criteria: To qualify for this extension, applicants must have paid a 10% advance on the property’s purchase price by July 31st, 2023. In the event that the initial property purchase falls through, applicants may invest in an alternative property, ensuring the total investment meets or exceeds EUR 250,000.
- Extension for Term Deposit Route: The proposal suggests prolonging the application deadline for the Term Deposit route, under the current EUR 400,000 threshold, until March 31st, 2024, anticipating an increase to EUR 500,000 thereafter.
Awaiting an official vote in the Greek Parliament, this proposal is poised to undergo further deliberation, with additional details anticipated to be disclosed soon. Stay informed for updates on this evolving development.
MALTA
Malta has emerged as a highly sought-after residence option for investors, families, and entrepreneurs, drawn by its strategic location, excellent quality of life, and stable political environment, making it an ideal hub for foreign investment.
Prospective residents can obtain the right of residence through investment in Malta via two approved avenues: purchasing real estate or renting a property.
The minimum investment amounts are as follows:
- €300,000 for property purchase in the southern region of Malta or Gozo, or €350,000 elsewhere in Malta.
- €10,000 for rental property in the southern region of Malta or Gozo, or €12,000 elsewhere in Malta.
Additionally, applicants for this European investment residence permit are required to make two further investments:
- A non-refundable state contribution of €28,000 when purchasing real estate or €58,000 when renting.
- A charitable contribution of €2,000 to a registered public organization.
TURKEY
Increase in minimum investment amount
Turkey’s citizenship by investment program has remained a sought-after option for global investors, thanks to its relatively lenient prerequisites and strategic location bridging Europe and the Middle East.
The latest amendment to the citizenship acquisition criteria stipulates that golden visa applicants must now allocate a minimum of $600,000 towards real estate, up from the previous $400,000 threshold, to qualify for Turkish citizenship.
This adjustment reflects the government’s effort to strike a balance between attracting foreign investment and ensuring that the economic benefits align with the privileges associated with citizenship acquisition. Notably, this $200,000 increment constitutes the third alteration in the history of the investment initiative.
While an official implementation date has yet to be disclosed, we will continue to provide updates as more information becomes available. Stay tuned for further developments on this matter.
CANADA
Quebec’s New Investor Immigration Program
Unlike other business immigration pathways, individuals under the revamped golden visa program are not obligated to establish or actively manage a business within the province. To qualify, applicants must meet the following criteria:
- Demonstrate a minimum proficiency in spoken French, equivalent to level 7 on the Échelle québécoise des niveaux de compétence en français des personnes immigrantes adultes.
- Possess a diploma obtained before the date of application submission, equivalent to at least a secondary school diploma in Quebec.
- Hold a work permit issued following the Ministère de l’Immigration, de la Francisation et de l’Intégration’s (MIFI) notice of intent to issue a selection certificate (PCSQ).
- Reside legally in Quebec for a minimum of 6 months within 2 years from the date of work permit issuance, alongside any included spouses or common-law partners.
- Make a risk-free investment of C$1 million with IQ Immigrants Investisseurs Inc. over a 5-year term at 0% interest, along with a non-refundable financial contribution of C$200,000 to the company through a financial intermediary within 120 days of acceptance.
Criteria that remain unchanged include:
- Possession of a net worth of at least C$2 million, including assets of spouses or common-law partners.
- Accumulation of a minimum of 2 years of management experience within the 5 years preceding the application submission.
Upon successful application, candidates receive a selection certificate from Quebec for Canadian immigration, enabling them to pursue Canadian permanent residency following health and criminality examinations by Federal immigration authorities.
