The tightening of "golden visas" in many European countries is becoming increasingly popular? Investors flock to Greece to buy houses, Portugal | Residency | Investors

Since the EU promised to crack down on "golden visas," immigration consulting firms have experienced a period of business explosion. According to EU data, the number of visas issued in Greece and Portugal has been increasing in recent months, and visa demand in Italy and Spain has also reached a historic high.

Moreover, due to strong demand and rising prices, starting from August 1st, the investment threshold for specific regions in Greece has increased from 250000 euros to 500000 euros.

Why is the "golden visa" becoming hotter and hotter with more restrictions?

Is it just a show?

The so-called "golden visa" refers to allowing foreigners to obtain EU residency through investing in local real estate or financial assets, thereby obtaining citizenship, with very few additional conditions.

According to data from the European Union, from 2011 to 2019, over 132000 people within the EU obtained citizenship through similar programs. At the same time, the "golden visa" has pushed up real estate prices in many issuing countries, and there are also issues of lax regulation, which has caused internal political troubles for many EU member states.

According to data from the Portuguese National Bureau of Statistics, the Portuguese residential property price index increased by 30% from 2019 to the end of 2022. In Lisbon and Porto, the largest cities in Portugal, rental prices continue to rise, with average rents reaching 13.18 euros per square meter and 10.08 euros per square meter, respectively. Rent in Lisbon alone jumped by 37% in 2022.

In 2022, the UK closed its Gold Visa program, which is the Tier 1 investor visa for investment immigration. In the same year, the European Union called on member states to terminate their gold passport program, followed by Portugal announcing the termination of its "gold visa" program. Spain is weighing whether to increase the minimum investment amount from 500000 euros to 1 million euros, or completely abolish it.

However, Pacasaburi, Managing Director of Global Citizen Solutions, an immigration consulting firm, said, "We have not observed any significant changes in the difficulty of obtaining visas."

In fact, despite the harsh rhetoric of politicians, the legislation restricting gold visas in various countries is not as strict. For example, Portugal did indeed cancel the option of obtaining residency through real estate investment in July this year, but if foreigners invest at least 500000 euros in local companies or funds unrelated to real estate, they still retain the possibility of obtaining residency.

For example, although the Netherlands has announced plans to terminate its program, it is still accepting gold visa applications, and the Republic of Montenegro is no exception. Cyprus changed its visa framework in May this year. Previously, family members of investors could also obtain gold visas, but now they cannot. However, most of the remaining visa content remains unchanged. Bulgaria has reintroduced the Gold Visa program this year after closing it in 2021. Malta, on the other hand, "resisted to the end" despite repeated calls from the European Commission, refusing to reform its "golden visa" program.

Other countries have also made superficial claims, with Greece recently raising investment thresholds but not having any actual deterrent effect on the influx of investment.

At present, if one wishes to apply for a gold visa in Greece, the investment amount in the most popular regions of Athens, Thessaloniki, Miconos Island, and Santorini Island will be increased to 500000 euros, but the threshold of 250000 euros in other regions remains unchanged. And gold visa holders do not need to stay in Greece to retain their visa. Usually, third country nationals who are over 18 years old and have no criminal record can purchase a property for a specified amount.

Katz, founder of Canadian immigration consulting firm Apex Capital Partners, said, "For people worth around $5-7 million, investing $500000 to obtain EU residency is acceptable."

Even in countries that have already cancelled the plan, other options are currently available. Although there is no visa that is completely equivalent to a gold visa, alternatives such as digital nomadic visas designed specifically for remote workers seeking overseas living are becoming increasingly popular.

Founders interested in starting a business in the UK, France, Ireland, or Germany can also apply for a special investor visa, which grants temporary and permanent residency. However, in both cases, the requirements are stricter than the gold visa: the digital nomadic visa requires applicants to spend most of the year in that country, while the investor visa requires submission of a clear business plan and annual report, as well as early investment.

Americans seeking Plan B after the pandemic

After the European debt crisis, many European countries such as Portugal, Ireland, Spain, Greece, and Malta attracted a large amount of funds through the "investment for residency" program in order to increase their fiscal revenue. During the pandemic, it became particularly popular as Americans seeking Plan B flocked to Europe.

Consulting firm Get Golden Visa predicts in its 2022 report, "This is the busiest year to date."

As Portugal tightens its regulations, investors are beginning to favor gold visas from Italy and Greece.

Get Golden Visa, headquartered in London, saw a 127% increase in inquiries regarding gold visas for Portugal and Greece in the first half of this year compared to the same period last year.

Consulting firm Henley Partners stated that interest in Italian projects has surged unprecedentedly, with inquiries increasing by 125%. Global Citizen Solutions, an immigration consulting firm, stated that compared to last year, inquiries regarding Portuguese gold visas have increased by 20%.

In fact, more people are also going through this process: according to government statistics, the number of gold visas issued by Portugal in May alone reached its highest level in many years: 180. In Greece, this number reached 412, a year-on-year increase of 87%. According to data from Greece, the gold visa program contributed nearly 1 billion euros to the Greek economy in the first five months of this year. This growth is mainly attributed to the termination of Portugal's golden visa program.

Between January and May, Greece received 3900 applications to purchase residential properties, compared to 1444 in the same period last year. Before the new measures came into effect in August, there was a backlog of over 5500 visas waiting for approval of investment applications. From May 2022 to May 2023, the Greek government received 8351 applications, of which 35% were approved. The total value of properties sold during this period reached 975 million euros, which is about three times the total value of properties sold between May 2021 and May 2022, which was 361 million euros.

Spain issued a total of 2462 gold visas last year, a 60% increase from 2021. Italy also issued 79 gold visas last year, mainly to Russians, Americans, and British people, which is almost twice the amount from the previous year and the most since the country launched the program in 2018.

Katz said, "Every time the government threatens to shut down these projects, the demand to try to enter the door before the projects close surges. This is great for business.".

In fact, immigration consultants are not nervous about the disappearance of these projects, mainly because it involves financial issues. According to foreign media statistics, in the past decade, various European gold visa issuing countries have received a total of approximately 25 billion euros in foreign direct investment through these programs. Among them, Portugal has always been one of the biggest beneficiaries, receiving a revenue of 6.8 billion euros.

Professor Harvey, who specializes in technical immigration at the University of Bristol in the UK, said that these countries are unlikely to completely close the door to golden visas. "These visas are important for struggling economies, so many EU countries eventually become quite contradictory," he said.

At the same time, if the gold visa is cancelled, it may mean having to start levying other tax payments, as the aforementioned European countries generally face problems of high debt and low economic growth, long-term economic weakness, and lack of new fiscal growth points.