EU Golden Visas: Beleaguered in The North and West, Thriving in the South and East

Charles Savva
Cyprus

The European Union’s relationship with Golden Visa programs—investment-based residency schemes that offer wealthy foreigners the chance to gain residency rights—has become increasingly fraught.

As the EU’s ostensible concerns grow over money laundering, housing market inflation, and national security risks, several prominent EU countries have begun to phase out or heavily restrict these programs. These claims by the EU have little merit in practice, but Golden Visas have nevertheless become political leverage, a tool that politicians use to gain votes and rile the public, and that fearmongering has worked.

Countries like Portugal, Spain, and Ireland have been at the forefront of this movement. In 2023, Portugal eliminated the real estate investment route from its Golden Visa program in an effort to cool its overheated property market and address concerns about housing affordability.

Similarly, Spain has signaled its intention to completely abolish its Golden Visa program. Ireland scrapped its program due to concerns about financial crime and housing market impacts.

The European Commission has also expressed broader concerns about the security risks associated with Golden Visas, particularly in light of the Russia-Ukraine conflict.

These programs have been criticized for potentially allowing sanctioned individuals and criminals to gain residency within the EU, undermining the bloc’s security and transparency goals.

Not all EU countries, however, are moving away from Golden Visas. In contrast to the tightening measures elsewhere, countries like Cyprus and Greece are thriving, maintaining or even enhancing their programs.

Cyprus, for instance, continues to attract investors with its relatively low investment threshold of €300,000 despite introducing stricter regulations in 2023.

These new rules require proof of sustained income and investment levels each year, and they limit the inclusion of dependents.

Greece remains another possible destination for Golden Visa investors, especially given its relatively lower investment requirements, even if recent changes in the program have limited the scope of €250,000 investments.

Hungary’s new Guest Investor Program is also moving ahead, even if the process is still somewhat vague.

While these countries have seen success through their programs, the broader EU trend suggests that Golden Visas might face increasing scrutiny and regulation.

The divergence in policy responses highlights a growing tension within the EU between attracting foreign investment and addressing the socio-economic and security risks associated with these programs.

This means a more complex landscape for investors, where careful consideration of each country’s evolving rules and requirements is essential.

For those considering Golden Visas, plenty of options remain, but they should also be mindful of the broader EU push to curb these programs.

The future of investor immigration in Europe is uncertain, and changes to Golden Visa schemes are likely to continue as the EU grapples with the implications of these programs on its financial and social stability.