Golden Visas offer countries a thriving route to attract investors
The ‘Golden Visas issued by various Schengen countries have come under increasing scrutiny and criticism over concerns that these visas facilitate money laundering, tax evasion and security threats to the European Union. Two years ago, the European Commission asked EU member countries to desist from issuing Golden Visas and which led Ireland and Portugal to end their schemes. However, several other member states notably Greece, Spain, Italy, Hungary and Malta have continued with the schemes.
Earlier in December, the Spanish government moved a resolution in the Parliament to end the scheme in 2025, but while the resolution was approved by the lower house of the Parliament, the Congress of Deputies, the upper house, the Senate, has vetoed the withdrawal of the scheme, putting a question mark over the future of the scheme.
On the other hand, Greece is looking set to expand the scheme further in 2025, as part of its plan to diversify the Golden Visa Programme. Greece has decided to introduce a new route for investment-linked visas, focussing on the startup sector. As per the new rules, from 2025 onwards, those who invest in Greek start-ups will also be eligible for the country’s Golden Visa.
To obtain a Greek Golden visa under the new startup investment pathway, foreigners will be required to meet several criteria, which include a minimum investment of EUR 250,000 in startups that are listed on the National Register of Startups, with a maximum equity participation of 33 pc in the capital of the company or voting rights. The start-ups must create at least two jobs in the first year of investment and they must maintain the workforce for at least five years.
In addition to Greece, while Italy and Malta have decided to keep their Golden Visas intact, Hungary has become the latest member to join the list of countries issuing Golden Visas, with the reopening of its Guest Investor Programme in October.
In its most basic form, golden visa acquisition, or residence by investment and citizenship by investment involve processes by which qualified, vetted candidates are granted either full residence or citizenship rights in exchange for a defined economic contribution to the host country. Golden visa programmes give high-net-worth individuals (HNWIs) the option of physically relocating to a favourable jurisdiction and becoming residents of that country with full legal rights, including the right to live, work, study, and receive healthcare in that country.
According to investment advisors like Henley & Partners, a golden visa provides investors and their families with access to new markets and a host of business, career, educational, healthcare, tax, and lifestyle opportunities on a worldwide scale, for both present and future generations. Many golden visa programmes allow the successful applicant to apply for citizenship after a few years of residence. These visas also provide the HNWIs an alternative safe haven, opportunities to enrich and expand their lifestyle and business as well as enjoy a high quality of life and access to excellent infrastructure.