What Is a Golden Visa?
A golden visa is a type of residency-by-investment program that allows individuals and their families to obtain residency or even citizenship in a foreign country by investing in its economy. A minimum investment amount in real estate, government bonds, or other approved investment vehicles is typically required to qualify for the program.
The name “golden visa” comes from its benefits, such as the ability to travel freely within the country and the potential tax benefits.
Key Takeaways
- A golden visa is a program that requires applicants to invest in a country’s economy to eventually gain residency or even citizenship.
- The benefits of obtaining a golden visa include residency, education, healthcare, tax benefits, and investment rewards.
- Downsides to a golden visa include investment risk, political instability, and tax implications, among others.
- Advice for those seeking a golden visa includes researching requirements and seeking advice from a professional who specializes in this type of program.
Benefits of a Golden Visa
For many, the most coveted benefit of a golden visa is residency or citizenship, though not all programs bestow citizenship merely for investing in a country. Here are some of the most common benefits available in countries that offer golden visas.
- Residency or citizenship—A golden visa lets you and your family members live and work in the country where you have a golden visa. In some cases, your investment can lead to the ability to apply for citizenship.
- Travel—With residency comes the right to travel freely within the country offering the program. Most European countries with golden visa programs include the right to travel within the European Union. This makes it easier to travel for business or pleasure without additional visas.
- Education—Many golden visa programs provide access to local education systems, including public schools and universities.
- Healthcare—Golden visa holders are often eligible for local healthcare benefits, depending on the country offering the program.
- Tax benefits—Some golden visa programs offer tax incentives, such as lower personal income tax rates or exemptions on foreign income.
- Real estate investment—The primary means of obtaining a golden visa is through investment in foreign real estate. This also provides you with an opportunity for capital appreciation and rental income. However, some countries make foreign real estate ownership harder.
Potential Risks and Downsides of Golden Visas
While golden visa programs can provide many benefits, there are also potential risks to consider before investing. Some of these risks include:
- Investment risk—Golden visa programs usually require a minimum investment, varying from country to country. There is always a risk that the investment may not perform as expected, resulting in a loss of capital.
- Sudden termination or reconfiguration—A nation’s government sometimes cancels or alters its golden visa program with little warning. This can not only create unfavorable economic consequences for the host country, but also put invested funds at risk and create personal turmoil for investors.
- Residency requirements—Many golden visa programs have residency requirements that investors must meet to maintain their status. If an investor fails to meet these requirements, they may lose residency status and investment.
- Tax implications—Investors should know the tax implications of investing in a foreign country. Some countries may have complex tax systems, and investors may be subject to additional taxes or reporting requirements.
- Political instability—Investing in a foreign country always carries a degree of political risk. Changes in government policies or instability can impact an investor’s ability to maintain their residency status or receive a return on their investment.
- Fraud and scams—Unfortunately, there have been cases of fraudulent golden visa programs that have taken advantage of unsuspecting investors. Thoroughly research any program before investing, and work with reputable professionals.
Sometimes, having a mortgage on an investment property could disqualify you from obtaining a golden visa. Many golden visa programs require proof of funds; some even require mortgage-free property or that the minimum investment be mortgage-free.
Consider these risks carefully before investing in a golden visa program, and consult with a professional to ensure that the investment aligns with your financial goals and risk tolerance.
How to Obtain a Golden Visa
The process for obtaining a golden visa can vary depending on the country offering the program. However, some common steps involved in getting a golden visa may include:
1. Do Your Research
Look into which countries offer golden visa programs, and determine which program best suits your needs. There are many characteristics of a country to consider, including cost of living, infrastructure, stability of a country’s political situation, and more. More on this below.
2. Understand the Investment Requirements
Most golden visa programs require a minimum investment in real estate, government bonds, or other approved investments. Make sure you have the necessary funds available to invest.
3. Submit an Application
Once you have identified the golden visa program you wish to apply for, you must complete an application and submit it with any required documentation, such as proof of investment and a criminal background check.
4. Wait for Approval
The application process can take weeks to months, depending on the country offering the program. Once your application has been reviewed and approved, you will receive your golden visa.
5. Familiarize Yourself with the Renewal Requirements
Golden visas typically need to be renewed periodically, so make sure you know your specific program’s renewal requirements.
6. Be Prepared to Take Additional Steps
Depending on the country offering the program, additional steps may be involved in obtaining a golden visa, such as language proficiency tests or interviews. Be sure to carefully review the requirements for your specific program to ensure a smooth application process.
Comparing Golden Visa Programs in Different Countries
Approximately 40 countries currently offer golden visa programs, with over 100 having some form of investment migration legislation. Canada, Greece, Portugal, Spain, and the United States are among the most popular.
Here’s a brief comparison of those countries and their golden visa programs. Note that each country’s golden visa program has unique requirements and benefits, so it’s essential to carefully research each program and consult a professional before making any investment decisions.
The minimum investment required for a golden visa can vary depending on the country offering the program, but in general, the investment amount can range from several hundred thousand to several million dollars.
Canada
For the price of creating an innovative startup business (no minimum capital investment), Canada will issue a golden visa that provides permanent residency in Canada and allows for visa-free travel throughout North America. After three years of residency, investors can apply for Canadian citizenship.
Greece
Greece’s golden visa program requires a minimum investment of approximately $263,000 (€250,000) in real estate. The program provides residency in Greece and, like Spain, allows visa-free travel throughout the Schengen Area. After seven years of residency, investors can apply for Greek citizenship.
Portugal
Portugal’s program currently requires a minimum investment of approximately $295,000 (€280,000) in real estate. That option will go away once Portugal stops accepting real estate investments on a date that is not known. Meanwhile, other non-real estate options will remain open. The program provides residency in Portugal and allows visa-free travel throughout the European Union. After five years of residency, investors can apply for Portuguese citizenship.
Spain
A minimum investment of approximately $527,000 (€500,000) in real estate will get you a golden visa in Spain. The program provides residency in Spain and allows visa-free travel throughout the 27-nation Schengen Area. After 10 years of residency, investors can apply for Spanish citizenship.
United States
The U.S. EB-5 program requires a minimum investment of $800,000 in a new commercial enterprise that creates at least 10 full-time jobs. The program provides conditional residency in the United States and allows visa-free travel to nine countries, including Canada, Mexico, and Singapore. After two years of residency, investors can apply to have the conditions removed and obtain permanent residency.
Alternatives to the Golden Visa
Depending on your financial goals and personal circ*mstances, you may want to consider an alternative to a golden visa. Some of these alternative programs include:
Retirement Visa
Some countries, including Dubai, Indonesia, Italy, and Thailand, offer retirement visas that allow you to retire in the country for a certain period of time, usually on a renewable basis. You must be of retirement age and able to support yourself. Investment requirements are often lower than for a residency visa.
Work Visa
With a work visa you can’t switch employers without notifying immigration. You must work in the same industry if you switch jobs and continue to be employed. Besides the U.S., popular countries and regions for work visas include the United Kingdom, Canada, Australia, and Europe.
Student Visa
Students who are accepted into a foreign university or language program may be able to obtain a student visa that allows them to live and study in the country for a certain period of time. Student visas typically have a proof-of-funds requirement rather than a minimum investment like a golden visa. In addition to the United States, popular countries for student visas include the United Kingdom, Canada, China, and Australia.
Citizenship by Descent
Some countries offer citizenship by descent to individuals who have ancestors who were citizens of the country. This may be an option for individuals with family ties to a specific country who wish to obtain citizenship without making a significant investment. Citizenship by descent is available worldwide in many countries. Each country has its own eligibility requirements.
Tips and Advice for Golden Visa Applicants
If you decide to apply for a golden visa, here are some tips and advice to help you navigate the process. Depending on the country, the process can be difficult, time-consuming, and even full of bureaucratic hurdles.
Family members can often be included in a golden visa application, including the investor’s spouse and dependent children under age 18 and sometimes dependent parents or adult children.
- Research the program. Before taking the plunge, thoroughly research the golden visa program you are considering. Before deciding to apply, learn and understand the primary components, including investment requirements, residency obligations, and program benefits.
- Work with a professional. Applying for a golden visa is rarely a wise do-it-yourself project. Research this part as well. Work with a professional specializing in golden visa programs, such as an immigration lawyer or a financial advisor. Experts can save time and money by providing valuable guidance and advice throughout the application process.
- Plan. Golden visa programs can have lengthy application processes. Planning and allowing plenty of time for the process to play out is essential. Be sure to carefully review the application requirements and gather all necessary documentation under the guidance of your expert.
- Be aware of the risks. Investing, by its nature, is risky. Residency requirements, tax implications, and political instability regarding a golden visa can further exacerbate that risk. Carefully consider all of these risks before investing.
- Follow the rules. Once you have your golden visa in hand, be sure to follow all residency requirements and renewal obligations. Failure to do so could result in losing your residency status and investment.
Does a Golden Visa Make It Easier to Obtain Citizenship?
In some cases, golden visa programs have a pathway to citizenship built into the program. In others, investors may need to meet additional requirements beyond the golden visa program in order to obtain citizenship.
How Long Does a Golden Visa Application Take?
The length of time it takes to process a golden visa application can vary depending on the country. In general, the process takes anywhere from a few months to more than a year.
How Long Is a Golden Visa Valid?
Most golden visas are valid for one to two years, although the time frame can vary depending on the country offering the program. Remember that you have an obligation to meet all visa requirements or your visa can be revoked at any time.
The Bottom Line
If you decide to pursue a golden visa, do your research and obtain the services of someone skilled in these programs. Consider the risks and keep them front of mind as you go through the process. Be prepared to be patient, especially when dealing with a country known to take longer to process applications. Have all paperwork ready and ensure it is up to date, since incomplete or outdated paperwork only means additional delays.
Consider alternatives to a golden visa if any fit your needs, since virtually all alternatives will be less costly. Discuss your plans with family and friends, especially family who might accompany you if you reside full-time in the host country. Be mindful of all deadlines and requirements once you are in residence. Missing a deadline or renewal can have unfortunate consequences. Finally, be prepared to enjoy your life and investment in a new country.
