What exactly is a golden visa?
A golden visa is a type of residency permit issued by various countries. These visas are sometimes referred to as residence-by-investment programs, and they can permit foreign individuals to obtain residency rights (and in some cases, citizenship) in exchange for making a significant investment in that country, often in the form of real estate purchases.
What can a golden visa mean for your client?
1. Residency rights
Many golden visas are a ticket for your clients that allow them to live, work, and travel freely within that country. In some countries, obtaining a golden visa is the path to citizenship.
2. A chance to diversify investments
Investing in real estate through a golden visa program can provide the perfect opportunity for those wanting to diversify their investment portfolio while also accessing the benefits that come with a visa.
3. Lifestyle benefits
Some countries that offer golden visa programs boast alluring lifestyle benefits such as favorable climates, excellent healthcare, and top education systems, making them desirable destinations for individuals and families to relocate or to invest in as a secondary residence.
4. Tax advantages
Some golden visa programs make real estate investments financially attractive by offering tax incentives.
5. Inclusive family policies
Many golden visa programs allow investors to include their immediate family members, such as spouses and dependent children, under the same visa. This can make the golden visa route an appealing option for families seeking a change of scene or educational opportunities for their children.
Pro Tip
Create a digital file and keep updated on government regulations on golden visas for your specific regions. These can change quite significantly, so be prepared!
What do you need to know about golden visa opportunities?
While obtaining a residency permit as a result of a real estate investment can sound very appealing and have many benefits, there are some serious considerations to keep in mind. As with any global real estate transaction, you will be working with cross-cultural companies and foreign entities as well as navigating geopolitical terrains.
The eligibility requirements are typically closely linked to whichever government administration is in charge. Thus a change in the government could mean a change in the requirements. Here are some examples of the types of policies that are often affected when a new government takes over:
Investment thresholds—Economic priorities can shift when a new government takes over. For instance, minimum investment amounts may be raised or lowered.
Eligible investment categories—The types of investments that qualify for a golden visa, such as real estate, business investments, or government bonds, could be expanded or restricted under a new administration.
Residency requirements—The minimum residency periods or physical presence requirements to maintain a golden visa status may be adjusted by the new government.
Family policies—Rules regarding the inclusion of family members under a golden visa may be altered.
Program suspension or termination—New governments have suspended existing golden visa programs for any number of reasons, including security risks or a shift in local economy goals.
Pro Tip
Be aware and protect your client! Keep a calendar of important country-specific elections that may impact your real estate transactions and processes.
Golden Visas around the world
As of May 2024, these countries no longer offer a golden visa through real estate investment.
- Ireland
- Portugal*
- Montenegro
- United Kingdom
*Portugal offers golden visas in exchange for other investment in other areas including cultural and artistic donations, scientific research, and business start-ups.
Which countries offer Golden Visas?
Sample of countries offering golden visa real estate programs and their investment thresholds:
- Spain: €500,000
- Greece: €250,000–500,000 (rising to €500,000 in some regions of the country)
- Antigua: €400,000*
- Hungary: €250,000
- Malta: €700,000
- Grenada*: €220,000
*in a government-approved real estate project
Does the United States have a golden visa program?
The US has a type of visa available through its EB-5 (employment-based fifth preference visa) program. While many countries offer a visa through real estate purchases, Congress created the EB-5 Program in 1990 to stimulate the US economy through job creation and capital investment by foreign investors. This program is administered by the United States Citizenship and Immigration Services.
Applicants must:
- Make the necessary investment in a commercial enterprise in the US; and
- Plan to create or preserve 10 permanent full-time jobs for qualified US workers.
Benefits
- Stimulates the economy
- Relatively quick route to citizenship
- Education system for family members
Be Aware
- High investment requirement
- Approval challenges
- Costly legal fees
Pro Tip
Remember that residency and citizenship routes through real estate investment are very nuanced, and they differ from country-to-country. Each country has its own application process. Be sure to consult all parties involved to make sure you know the ins and outs before embarking on this adventure with a client!
