What Is A Golden Visa?

It turns out that money does buy you happiness… if buying your way into a country puts a smile on your face. That’s because for those with cash to burn, it’s possible to attain guaranteed residency in some countries via a “residency-by-investment” program – also known as a Golden Visa – which grants residency to an individual in return for a significant investment in the country. This allows the holder (and often their family) to live and work freely in the country.

Necessary investments vary depending on the desired country, but they range from purchasing a home there, to sinking hundreds of thousands of dollars into a business located in that country.

The required amount of days spent annually in the country also varies, as does the duration of time you must own or invest money in the country before you’re ultimately eligible to be considered for permanent residency. In the latter case, it can take years. So bring your checkbook and your patience. 

Who Can Apply for a Golden Visa?

Typically, an applicant must be at least 18 years old, have no felony convictions on their record, and have the necessary cash to make the requisite investment. There may also be restrictions on who can apply based on your citizenship.   

What Do You Have To Do? 

You must be able to prove that the money you are investing is your own and not, for example, borrowed from a bank. As mentioned, the investment can be in real estate or a business – already-existing, or your own. In the latter case, job creation and technological innovation make an individual even more appealing. 

What Countries Offer Them? 

Many countries offer Golden Visa programs, such as Canada, Cyprus, Greece, Malta, New Zealand, Portugal, Singapore, Spain, Switzerland, the UK, and the United States. In addition, there are several territories in the Caribbean that can offer attractive prospects to wealthy individuals. Below we have given a small sampling, along with some of the requirements:

• Malta - minimum investment amount starts at €690,000 and offers citizenship for between 12 and 36 months. 
• Portugal - widely considered to be the ‘best’ option for those looking to get residence by investment. Purchase property or invest into the country (known as capital transfer investments.) Minimum investment is €280,000 via property purchase in a low population-density area. Required time spent = 7 days/year, with option to seek citizenship after 5 years.  
• Italy - golden visa grants non-EU nationals a residence permit for 2 years in exchange for an investment in Italy. Minimum investment is €250,000 investment in an Italian innovative startup. Visa-holders can include their family in the application and benefit from a special tax rate. If an individual maintains the investment + lives in Italy for 10 years, they can be eligible for citizenship. 
• Greece - has one of the quickest processes for gaining residency - possible permit within 60 days of application. Lowest threshold for investment is €250,000. Golden visa holders aren’t required to stay in Greece to keep their visas. 
• Ireland - minimum of €1 million invested in a pre-approved private equity or venture capital fund focusing on small and medium-sized enterprises. The fund must also have a minimum target size of €20 million.

What’s the difference between Golden Visa and Golden Passport programs? 

In short, Golden Visas offer you residency and Golden Passports offer citizenship and a passport.  Depending on what your goals are, a Golden Passport may be more attractive. The financial requirements are often lower, the types of investment can be broader, they are generally quicker to acquire and you gain citizenship and a right to travel the world with that passport. 

But Golden Passports aren’t for everyone. These are not available in as many countries, you may not be looking for citizenship and, in fact, there may be limitations that affect your ability to hold dual citizenship.  

As always, consult legal and tax professionals for guidance on what’s right for you, if you’re making a golden decision. 

Downsides to Golden Visa Programs

1) Property Limitations - many countries limit where you can buy real estate. For example, beginning in 2022 in Portugal, properties purchased in Lisbon, Porto, and most of coastal Portugal (including the majority of the Algarve) no longer qualify. 

2) Cost. You’re paying to purchase real estate, but you’re also going to pay government fees (for example, in Portugal these amount to over €5,000 per person for the initial application. These then have to be renewed at a cost €2,500 per person.) Plus there are lawyer fees in addition.

3) Time & Taxes.  While Golden Visa programs do not generally require that you spend much time in the country, these programs do not necessarily get you out of paying taxes in other countries. Americans thinking that they can simply get a Golden Visa in another country and then tell the US government that they do not owe any taxes in the US, are most likely in for a big unhappy surprise down the line. Having legal “residence” in another country does not necessarily change your tax obligations.  

Chrono’s Take

Keep in mind that acquiring residency in another country doesn’t necessarily absolve you on tax liabilities in the country/countries you’re coming from.  

Before you go spending on a shiny new residency visa, remember to download the Chrono app to capture your time in place…

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