Mission Statement: to assist the integration of foreign residents living in Spain
By Johanna Gardener •
Updated: 12 Nov 2024 • 19:48 • 4 minutes read
As Spain plans to ban Golden Visas by January 2025, the EU appears to be no different as many countries have abolished or plan to go on the rampage to complicate deals that grant residency to high-end property investors – sometimes without even residing in the country.
Despite more caution from EU governments recently, the popularity of the Golden Visa continues to remain significant as many emigrate from politically unstable climates or decisions like Brexit for a better life elsewhere.
The UK and the US have been two major benefactors of Golden Visa schemes in recent years. Political polarisation and insecurity mean that investors lose faith in their own country’s financial stability. However, this may soon be coming to an end as Europe is gradually phasing out this luxury VIP pass to residency.
Limitations increasingly placed on Golden Visas across Europe
Some countries have already banned Golden Visas or limited criteria for acquiring one. Real estate as a requirement for applications has been removed from Portuguese policy since last year and the Netherlands ended the scheme altogether this January. Paradoxically, as Golden Visa schemes end, new doors open for countries like Hungary which has reintroduced the initiative for the so-called Guest Investor Program (GIP) with three routes available to be granted residency: real estate investment (minimum €250,000); residential property (minimum €500,000); or donating at least €1 million to national higher educational establishments.
What is a Golden Visa?
For those not so “au fait” with the Golden Visa scheme, it is, in a nutshell, a channel for wealthier investors to buy into property in a foreign country and by way of a two-way deal, to earn residency rights there. Criteria includes being over the age of 18 with a clear criminal record and funds sufficiently high to cover property investment costs for each country’s golden visa investment threshold.
Why is Europe clamping down on the Golden Visa scheme?
With all the benefits of foreign investment and the promotion of European intercultural relations, why would the EU be so against Golden Visas and passports? A lot stems from 2022. The European Commission started to discourage European countries from selling citizenship to foreign investors, especially in the wake of conflicts between Russia and Ukraine due to sanctions being imposed on Russia and fear of infiltration. The Golden Visa is not a free citizenship scheme but apprehension surrounding the concept of residency sparked debate on parallel schemes including the Golden Visa.
Conflicts in Ukraine called for more controls on Golden Visas
Measures across Europe called for tighter control of the Golden Visa scheme. Brussels was very keen to introduce scanning checks of existing visas following the war in Ukraine, due to security risks. The European Commission attempted to dissuade Albania to refrain from developing an investors citizenship scheme (Golden Passports) in 2022 for similar reasons.
Countries which have banned the Golden Visa scheme
In the western countries, the UK launched a ban on Golden Visas in February 2022. The scheme had allowed foreign nationals to invest in UK property in exchange for settlement in the country, but was scrapped partly due to fear of Russian or Russian-influenced investments. Ireland axed its Golden Visa scheme a year later in 2023 known as the Immigrant Investor Programme, it had granted Irish residence in exchange for investments of over €0.5 million.
How does Spain fare with Golden Visas?
Spain has had its own Golden Visa investment scheme since 2013. Those investing in real estate or business ventures must fork out a whopping €500,000 in order to be granted residency. However, amid recent tensions surrounding strain on the housing market, especially in major cities including Malaga, Madrid and Barcelona, it was suggested that the real estate criteria be scrapped to ease pressure on housing availability. Pedro Sánchez said the reform was part of the government s push to make housing “a right, not a speculative business.” In the absence of approval from opposition parties, the road to banning Golden Visas has been tricky, following 11 successful years and 15,000 granted Golden Visas. The domino effect of a potential ban set for January 2025 has been the race for property investment from no other than Chinese investors.
If the ban goes through in January next year, there will still be options to obtain a Golden Visa. However, it will imply business investments – for example company shares of €1 million in Spanish financial institutions, or government bonds investments of at least €2 million.
More generous visa-residency schemes still up for grabs
Other countries continue to offer even more generous schemes like Italy with minimum investments of €250,000 (even for non-EU residents) and citizenship after ten years of residency. Greece was one of the most liberal schemes, with a quick application-residency process of a mere 60 days and previously with a low property investment threshold of €250,000, yet since September, and due to housing crisis, these thresholds were changed.
What will be the future of the Golden Visa in Europe?
The golden visa scheme has undeniably attracted foreign investment, boosting economies across Europe and aiding financial recovery for several countries. However, as housing crises intensify in places like Greece and Spain, and as concerns about security and the potential influx from conflict zones rise, tightening controls—or even discontinuing these schemes—seems justifiable. The future of the Golden Visa remains uncertain, and its existence by 2030 is far from guaranteed. This trend toward limiting cross-border fluidity raises a larger question: are these moves indicative of a shift toward a more protectionist Europe, where individual nations prioritize self-interest over collective EU solidarity? As pressures mount, Europe stands at a crossroads, with each policy decision reflecting either a step back toward nationalist interests or a reinforcement of shared unity. The coming years will reveal which path the EU ultimately chooses.
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Written by
Johanna Gardener
Originally from Manchester, UK and with a degree in English with Modern Foreign Languages, she has been a permanent resident in Spain for the past 12 years. Many of these years, she has spent working as a secondary school teacher, as well as in journalism, editing and marketing. She currently lives in the historic centre of Malaga, where she enjoys writing, walking and animals.
An excellent article. Simply put, you can t have your cake and eat it! Governments have to learn that accepting the cash from wealthy investors in exchange for certain privedges does nothing to ensure that the applicants are not thugs, thieves or worse. Surely, with the sophisticated means now available to government security agencies, every applicant can be screened to ensure that the contribution he or she is making is not simply to acquire or favours. Every applicant should have to pass a good citizens test. And the cost of these favours should reflect reality: start at at least Euro 5 million, the majority of which the governments should put into new social housing projects.
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