“Golden Visa” is a special program that allows wealthy foreigners to obtain a residence permit or even citizenship in exchange for investments in the host country's economy. This phenomenon causes a lot of discussion, touching on issues of economics, law, and ethics. Let's explore this topic in more detail.

Contents:

  1. Main Features of the “Golden Visa” Program
  2. Objectives of Golden Visa Programs
  3. Requirements for Obtaining a Golden Visa
  4. Process of Obtaining a Golden Visa
  5. Benefits for Recipients
  6. Criticism and Controversies
  7. Statistics and Trends

The concept of “buying” the right to reside in another country is not new. Even in ancient times, wealthy merchants and aristocrats could obtain special privileges in foreign lands thanks to their wealth. However, modern “golden visa” programs trace their origins to the 1980s.

One of the first countries to offer such a program was St. Kitts and Nevis in 1984. This small Caribbean nation was looking for ways to attract foreign investment and improve its economy after gaining independence from Britain. The success of the program inspired other countries to create similar schemes.

In Europe, Ireland was the pioneer, launching its program in 1988. However, the real boom in “golden visas” came after the 2008 global financial crisis, when many countries, especially in Southern Europe, began seeking new ways to attract capital to rebuild their economies.

Currently, the Golden Visa program is offered by at least 14 countries, including, for example, Portugal, Spain, Greece, Malta, the USA, Italy, St. Kitts and Nevis, Canada, and New Zealand.

Main Features of the “Golden Visa” Program

A “golden visa” is a commonly used term for programs that grant residence rights or citizenship to foreign nationals in exchange for significant investments in the host country's economy. Despite the variety of conditions in different countries, several key characteristics can be identified:

  • Investment nature. The main condition for obtaining a “golden visa” is the investment of a certain amount of money into the country's economy.
  • Expedited process. Compared to traditional methods of obtaining residency, the process of acquiring a “golden visa” is usually significantly faster and simpler.
  • Minimal residency requirements. Many programs do not require permanent residence in the country or are limited to a minimum period of stay.
  • Family inclusion. Often, the “golden visa” extends not only to the investor but also to family members.
  • Path to citizenship. Many programs provide a pathway to citizenship after a certain period of residence in the country.

Objectives of Golden Visa Programs

Countries offering “golden visa” programs pursue several main objectives:

  • Attracting foreign investment. This is the primary and most obvious goal. Countries aim to attract capital to develop their economies, create new jobs, and stimulate various sectors, from real estate to high technology.
  • Economic diversification. The influx of foreign investors can help develop new industries and reduce dependence on traditional economic sectors.
  • Improving the demographic situation. Attracting wealthy immigrants can help address issues related to an aging population and shortage of skilled labor.
  • Enhancing international prestige. Having a successful “golden visa” program can elevate a country's status on the international stage and make it more attractive for business and tourism.

Requirements for Obtaining a Golden Visa

Requirements can vary significantly depending on the country, but usually include the following points:

  • Financial conditions. The minimum investment amount varies from €250,000 to several million euros or dollars.
  • Types of investments. May include real estate purchases, business investments, government bonds, or the creation of a certain number of jobs.
  • Source of funds. Applicants must prove the legality of the source of invested funds.
  • Clean criminal record. Most countries require a certificate of no criminal record.
  • Health insurance. Often, having health insurance is required for residing in the country.
  • Minimum age. Usually, the applicant must be over 18 years old.
  • Language proficiency. Some countries may require basic knowledge of the official language, especially for obtaining citizenship.

Process of Obtaining a Golden Visa

The process of obtaining a “golden visa” usually includes the following steps:

  1. Choosing a program and consulting with lawyers or specialized agencies.
  2. Preparing necessary documents (passport, criminal record certificate, proof of fund origin, etc.).
  3. Making investments according to program requirements.
  4. Submitting an application for a “golden visa”.
  5. Verification of documents and investments by relevant authorities.
  6. Obtaining a residence permit or citizenship (depending on the program and country).

woman watching the sunset in the city

Benefits for Recipients

“Golden visas” provide a number of significant benefits to their holders:

  • Freedom of movement. Many programs, especially in EU countries, give the right to visa-free travel within the Schengen area.
  • Business opportunities. Resident status facilitates doing business in the country and often throughout the EU.
  • Tax advantages. Some countries offer favorable tax regimes for investors.
  • Access to education and healthcare. Residents get access to the host country's education and healthcare systems.
  • Possibility of obtaining citizenship. Many programs provide a path to citizenship after several years.
  • Security and stability. For many investors, this is a way to secure a “Plan B” in case of political or economic instability in their home country.

Criticism and Controversies

Despite their popularity, “golden visa” programs face significant criticism:

  • Money laundering risks. There are concerns that such programs can be used to legitimize illegally obtained funds.
  • Security issues. Critics argue that expedited checks may allow criminals or individuals posing security threats to gain access to the country.
  • Social inequality. Programs are criticized for creating a system where the wealthy can “buy” rights unavailable to ordinary immigrants.
  • Impact on the real estate market. In some cases, programs lead to rising property prices, making them less accessible to local residents.
  • Ethical questions. Many consider the “sale” of citizenship or residence rights unethical.

According to various studies, the popularity of “golden visa” programs is growing. For example, since launching its program in 2012, Portugal has issued over 9,000 “golden visas,” attracting investments of more than €5 billion. In Greece, more than 8,000 visas have been issued since 2013, with investment volumes exceeding €2 billion.

However, in recent years, there has been a trend towards tightening requirements and increasing control over such programs, especially in EU countries.

These alternatives often require more active participation of the applicant in the country's economy but may be less costly.

The future of “golden visa” programs remains a subject of debate. On one hand, many countries continue to see them as an effective tool for attracting investment. On the other hand, there is growing pressure, especially in the EU, to tighten rules and increase control.

Likely trends:

  • Strengthening checks on the origin of funds and applicants' reliability.
  • Increasing requirements for active participation of investors in the country's economy.
  • Possible introduction of uniform standards for programs within the EU.
  • Development of alternative programs aimed at attracting not only capital but also human potential.

a girl with a suitcase