The countries offering "golden visas"

Many countries in Europe - and the rest of the world - are questioning the residency permits given to foreigners for investing in a property or other options. Better known as "golden visas", the European Commission has been warning for years that these schemes expose the European Union to security and money laundering risks, and the war in Ukraine has heightened these concerns.

As a way out of the recession after the 2008 economic crisis, many countries used these schemes as a way of attracting investment when it was most needed. Currently, golden visa eligibility varies, depending on the country, but the requirements for accessing a golden visa have either been criticised or tightened.

Buying a house or investing to achieve residency is not something new

Some schemes have been around for decades. They're a useful, and perhaps simple, way for governments to raise funds and encourage foreign investment. Canada introduced its Federal Investment Immigrant Program in the 1980s, and the USA has had the EB-5 Progam for years, allowing foreign investors to obtain a green card to become permanent residents of the world's leading economy.

In Europe, golden visas gained popularity during the European debt crisis, when a handful of countries began selling off property to try to attract foreign cash and plug budget deficits. Portugal, Ireland, Greece and Hungary were among these countries, after being bailed out by the European Union (EU) and the International Monetary Fund (IMF).

Portugal, for example, started offering these visas in 2012 who were willing to spend at least €500,000 on a property, invest in a fund in the country or start a business and create jobs. Since then, the property investment threshold has been lowered to €350,000.

In 2013, Greece, Spain and Hungary launched their own schemes, offering residence permits in exchange for property investment. In Spain, the starting point was half a million euros. The "golden visa" gave holders the right to travel freely in many EU countries, and to apply for citizenship after a few years.

Hungary cancelled its visa scheme in 2017 due to allegations of corruption but is already planning to relaunch a new version this year, giving those who invest at least €250,000 in local property funds or €500,000 in real estate the right to apply for a renewable residence permit every ten years.

But let's look at the disadvantages, such as rising house prices, concerns about money laundering and the lack of roots of buyers, which outweigh the advantages, and governments are moving away from this investment option, although they still represent a small part of each country's housing market.

The UK, Ireland, the Netherlands, Greece and Malta have ended or tightened the rules on their investment residency schemes. In April, Spain already announced that it would also end its scheme.

Meanwhile, Portugal has modified its scheme – one of the most popular in Europe – by removing property investment as a basis for applying for residency. Around 90% of the money raised by the Portuguese scheme came from the property sector.

"The scheme injected billions of euros into the real estate market and was so popular with Chinese investors that signs at Lisbon airport advertising luxury properties were written in Chinese," say the experts. More recently, the scheme has become increasingly popular with American investors.

In Portugal, residency can still be obtained by investing more than €500,000 in funds, carrying out scientific research activities or investing in the share capital of a company that creates five jobs or maintains ten jobs.

In March, Greece announced plans to raise the minimum amount foreign property buyers must pay to obtain a "golden visa" to €400,000, and it remains an option for those who can meet the higher threshold.

Beyond Europe, in January, Australia suspended applications for people investing more than AUD 5 million (€3 million) as part of a wider reform of immigration policy aimed at attracting higher-skilled migrants.

Where can you still get the "golden visa"?

The cost of obtaining citizenship through investment is also rising in the Caribbean, where such schemes account for more than half of the national income of some small island states.

Some Caribbean passports allow visa-free travel to the UK and the EU under bilateral agreements, and European regulators have expressed concern that they could act as a gateway for criminals. European governments are therefore pressuring Caribbean countries to restrict them.

Dominica, Grenada, St. Kitts and Nevis and Antigua and Barbuda agreed to charge at least $200,000 (€185,000) for their passports from 30 June, in some cases double the current rate. St. Lucia did not sign the agreement and continues to sell its passports for $100,000 (€93,000).