As the allure of living abroad grows among Americans, the concept of golden visas becomes increasingly attractive.
From 2019 to 2023, there has been a staggering 504% increase in the number of Americans exploring the option of acquiring a second passport or establishing residency in a foreign country, driven by “economic and political uncertainties,” as reported by Henley & Partners, a firm specializing in residency and citizenship through investment.
“Political instability tends to boost our business as more people seek a safe haven,” explained Denis Kravchenko, the business development director at Astons, an immigration investment firm. “Ultimately, individuals are looking to safeguard their assets. They want to know how to protect their wealth from taxes and potential crises.”
Golden visas offer a lucrative option for affluent individuals to secure residency in another nation through financial investment. Although these programs have existed for many years, they have recently seen a surge in popularity, especially among Americans. In fact, Americans made up approximately half of all applicants for Greece’s golden visa program this year, as per Astons.
Here’s what you need to know about golden visas:
Understanding Golden Visas
Golden visas, also known as residency by investment programs, allow foreign nationals to legally reside, work, and study in another country provided they make a significant investment in its economy.
“It may sound exclusive, but it’s quite simple,” said Kravchenko. “It grants you a residency status that is long-term and temporary, usually valid for at least five years.”
For those who obtain residency in a country within the European Union, it becomes easier to travel across member states, with the option for renewal. Unlike other types of visas, such as those for digital nomads, golden visas do not necessitate long-term physical presence in the host country. For instance, Portugal requires only seven days of presence per year. This makes it an excellent option for those considering future relocation plans. “For the vast majority who don’t plan to relocate immediately, it’s about preparing now for potential future moves,” Kravchenko added.
However, the popularity of golden visas has led some countries, like Spain, to phase out their programs following local pushback. Spain’s program, which required at least €500,000 (about $518,192) in real estate investment, will end on April 3. This decision comes after a significant rise in property prices, partly driven by foreign buyers, as seen in Mallorca where there was a 12% increase in American buyers last year.
Cost of Golden Visas
Securing a golden visa is not inexpensive and typically involves substantial investments such as purchasing real estate, buying government bonds, or making a non-refundable donation. Some of the more affordable and popular programs start at €250,000 (about $259,000) in countries like Greece and Portugal. In Greece, for example, this investment might cover a basic apartment, according to Kravchenko.
How to Obtain a Golden Visa
With organized paperwork and the assistance of an investment firm like Astons, the application process can be relatively quick. In Greece, it may take as little as four months. However, these programs are selective and have stringent compliance requirements, including verifying the source of income and ensuring there are no criminal records.
The process can take longer in countries with high demand from Americans, like Portugal, which is currently working through a backlog of nearly 50,000 golden visa applications, as reported by Bloomberg.
Top Destinations for Golden Visas
- Greece – Offers five-year residency to the entire family with a minimum real estate investment of €250,000 (about $259,000) in certain areas, presenting the lowest cost entry for the EU.
- Cyprus – Known for its beautiful beaches, Cyprus grants residency to the entire family with a minimum real estate investment of €300,000 (about $310,484).
- Malta – This Mediterranean island provides family residency with investments starting at €182,000 (about $189,228) and proof of over €500,000 (about $518,192) in assets.
- Portugal – Known for its affordable living costs and coastal charm, Portugal offers an initial two-year residency to the entire family with investments ranging from €250,000 (about $259,000) to €500,000 (about $518,192).
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Passionate about analyzing economic markets, Alice M. Carter joined THE NORTHERN FORUM with a mission: to make financial concepts accessible to everyone. With over 10 years of experience in economic journalism, she specializes in global economic trends and US financial policies. She firmly believes that a better understanding of the economy is the key to a more informed future.
