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What are ‘golden visas’ and which EU countries still hand them out?

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With the EU warning against citizenship by investment schemes, Spain’s government is looking to pull the plug on golden visas.

Getting the right to live and work in another country can be a long and difficult process. But that’s not always the case for those with money to spend.

Golden visas offer the opportunity for wealthy people to essentially ‘buy’ the right to residency – sometimes without even having to live in the country.

And their popularity in the European Union is growing as people look to move away from political decisions such as Brexit that may limit their rights.

With the unsettled political and social environment in the US in recent years, applications for golden visas from Americans were also projected to increase.

But golden visas are now gradually being phased out across Europe. Portugal amended its scheme in October, removing real estate investment as a basis for golden visa applications in the hope of reducing property speculation.

In the same month, the Netherlands announced it will end its golden visa scheme in January 2024.

Spain has announced plans to follow suit. The country had already proposed toughening the requirements for its golden visa last year, and in December the government’s junior coalition partner Sumar voiced support for scrapping the scheme.

So what exactly are these golden visa schemes and why has the EU raised questions about their safety in recent years?

What is a golden visa?

Residence by investment schemes, otherwise known as ‘golden visas’, offer people the chance to get a residency permit for a country by purchasing a house there or making a large investment or donation.

Any applicants must be over the age of 18, have a clean criminal record and have sufficient funds to make the required investment.

There are also golden passports, known officially as citizenship by investment programs, that allow foreigners to gain citizenship using the same means.

For countries in the EU, this also means gaining access to many of the benefits of being a resident of the bloc – including free movement between countries.

Why is the EU against golden visas and passports?

In 2022, the European Commission called on EU governments to stop selling citizenship to investors.

Though this is different to golden visas, which offer permanent residency rather than citizenship, the call came as part of a move to crack down on this combined multi-billion euro industry. In the wake of the Ukraine war, there were concerns that these schemes could be a security risk.

Brussels also called for countries to double-check whether people sanctioned due to the war were holding a golden passport or visa that they had issued.

In the past, the EU has also said that schemes of this kind are a risk to security, transparency and the values that underpin the European Union project.

In October 2022, the European Commission urged Albania to “refrain from developing an investors’ citizenship scheme (golden passports)”. Such a scheme would “pose risks as regards security, money laundering, tax evasion, terrorist financing, corruption and infiltration by organised crime, and would be incompatible with EU norms,” it warned in a report. The country has since suspended its plans to introduce a golden visa.

Threats also come from outside the bloc. Also in October 2022, the European Commission proposed a suspension of Vanuatu’s visa waiver agreement due to golden passport risks. This is because the scheme enables nationals of third countries to gain Vanuatu citizenship, which then earns them visa-free access to Schengen zone countries.

Which countries have scrapped their golden visa schemes?

In February 2022, the UK government scrapped its golden visa scheme that allowed wealthy foreign nationals to settle in the country in exchange for bringing part of their wealth with them. The decision to end the scheme came as part of a move to clamp down on dirty money from Russia.

In February 2023, Ireland also axed its golden visa scheme – the Immigrant Investor Programme – which offered Irish residence in return for a €500,000 donation or three-year annual €1 million investment in the country.

Ireland had already suspended the scheme for Russian citizens in March 2022 as part of sanctions imposed on the country for the invasion of Ukraine. The following month, the European Parliament warned that the programme was vulnerable to tax abuse. The final decision to end the scheme was the outcome of various international reports and internal reviews.

In February 2023, Portugal’s Prime Minister António Costa announced plans to end the country’s lucrative residence by investment scheme to tackle property and rent price speculation. Until then, foreigners could either purchase a property or invest some of their wealth into the country – known as capital transfer investments – in exchange for residency.

Between January and August 2022, the program brought almost €398 million to the country, according to Portugal‘s national news agency LUSA.

**Madeira**opposed the decision to end Portugal’s golden visa by real estate, which brought many high-income foreign residents to the autonomous region.

Since 6 October 2023, you are no longer able to apply for a golden visa through a real estate investment in Portugal. The new rules do not apply retroactively to existing visa holders, however.

Which EU countries still offer golden visas and what are the requirements?

There are only a few places that still offer golden passports in the EU. One of these countries is Malta. Here, the minimum investment amount starts at €690,000 and offers citizenship for between 12 and 36 months.

Many others, however, still offer golden visa schemes. Here are a few examples of exactly how much it costs to get residence by investment in these countries.

Does Spain still offer a golden visa?

Spain launched its residence by investment scheme in 2013. It allows wealthy people from outside the EU to obtain residency permits on investing more than €500,000 in real estate.

However, on Monday 8 April, the country’s government said it plans to scrap the scheme.

Socialist Prime Minister Pedro Sánchez said his minority coalition government would study the reform in the weekly Cabinet meeting on Tuesday 9 April.

Speaking on Monday, Sánchez said the reform was part of the government’s push to make housing “a right, not a speculative business”.

The government says some 10,000 such visas have been issued since the measure was brought into law in 2013 by a previous right-wing Popular Party government as a means to attract foreign investors.

In May, leader of the centre-left political party Más País Iñigo Errejon, blamed golden visas for a “brutal” increase in house prices that is forcing residents out of their neighbourhoods. Errejon also claimed that the scheme hadn’t created many new jobs.

Golden visas are strongly criticised for spurring property price hikes and speculation in the housing sector. Soaring house prices have long been a major problem for many Spaniards, particularly in the country’s major cities.

Renewed support for ending Spain‘s golden visa scheme came in December from the country’s government coalition partner Sumar, which wants to tackle soaring housing prices.

The visa can also be gained by starting certain types of business in Spain, holding company shares or bank deposits with a minimum value of €1 million in Spanish financial institutions, or making a government bonds investment of at least €2 million.

Italy’s golden visa scheme

Italy is another popular destination for those looking to get residence by investment. Introduced in 2017, its golden visa grants non-EU nationals a residence permit for two years in exchange for an investment in Italy.

The minimum investment here is €500,000 which must be done through an Italian limited country. Those holding these visas can also include their family in the application and benefit from a special tax regime.

Once those using the scheme have lived in Italy for 10 years, they can be eligible for citizenship.

Greece’s golden visa scheme

Greece offers golden visas, with one of the quickest processes for gaining residency. Qualifying foreigners can get a permit within 60 days of applying.

It used to have one of the lowest thresholds for investment at just €250,000 spent on property in the country. In September, the authorities raised this to €500,000 to increase the affordability of real estate for locals. The new threshold applies from 1 May 2023.

This update will be implemented in the Greater Area of Athens, the Municipality of Thessaloniki, and the islands of Mykonos and Santorini but the €250k threshold will remain the same in other regions.

Golden visa holders aren’t required to stay in Greece to keep their visas.

By the end of 2021, the country had seen 9,500 applications for these residence by investment schemes, one of the highest numbers in Europe.

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  • Daniela Daecher is a twenty-something bookworm and coffee addict with a passion for geeking out over sci fi, tv, movies, and books. In 2013 she completed her BA in English with a specialization in Linguistics. In 2014 she completed her MA in Linguistics, focusing on the relationship between language and communication in written form. She currently lives in Munich, Germany.

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World’s most powerful passport: Spain knocked off top spot by Asian nation

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Although Singapore is now in pole position, many European passport holders have impressive freedom of movement.

Singapore has risen to the top of a ranking of the world’s strongest passports, knocking Spain off the top spot.

Despite that blow for the country, European nations – including Spain, now relegated to second place – make up the rest of the top five.

VisaGuide.World’s ranking is seen as one of the most reliable within the travel industry, along with the Henley Passport Index.

The company evaluates 199 countries and territories globally and bases its results on factors including visa-free access, eVisas, and global mobility.

It then uses its own Destination Significance Score (DSS) to assign a unique value to each passport, although the DSS is not revealed in the ranking.

With this system, VisaGuide.World has found that the Singaporean passport is officially the strongest passport in the entire world – with a score of 91.27 out of a possible 100 as of September 2024.

Spain in second place, with a score of 90.60 is closely followed by France, whose score is 90.53.

Next up are the Italian and Hungarian passports, which come in with scores of 90.31 and 90.28 respectively.

It’s good news for Europe overall, with only one other country not on the continent, Japan, in the top 20. Japan takes 15th place, the same position as last year.

Germany, Austria, the Netherlands, Switzerland and Austria round out the top 10 ranking.

How does VisaGuide.World rank passports?

Released four times a year, VisaGuide.World’s passport ranking examines the number of destinations passport holders can access without a visa. Henley, usually thought of as the authority, takes a similar approach but has yet to release its ranking for this quarter.

VisaGuide.World takes other factors into consideration, creating its DSS for each travel destination.

That score factors in the type of entry policy each country enforces on an individual passport. That encompasses visa-free entry, Electronic Travel Authorisation (ETA), visa on arrival, e-Visas embassy approved visas, passport-free travel or banned entry.

This means the next ranking could look very different as Schengen countries introduce the Entry/Exit System (ETS) and ETIAS visa waiver for some non-EU countries and the UK rolls out its ETA.

The DSS also assigns points for the country’s GDP, global power and tourism development.

Not all of its criteria are considered equal, though. Visa-free access to a country with a high DSS earns a passport more points in the index than entry to a country with a low score.

The fact that VisaGuide.World does not specify the DSS of each country means that other factors may also affect the outcome of the index.

Why did Spain fall to second place in the ranking?

In VisaGuide.World’s last ranking, Spanish passport holders could travel visa-free to 160 countries and territories. In September’s results, that number has fallen to just 107.

It appears to be a drop across the board, though. Singaporean passport holders could previously visit 164 places without a visa but today, that only applies to 160.

While the ranking doesn’t explicitly say why this is the case, it is a regularly-changing figure due to shifting diplomatic ties, mutual visa policies, and the political and economic stability of countries and territories globally.

Spain, though, and all the European countries in the top 20 do have a benefit that Singapore doesn’t. Passport holders of these nations can travel to more than 30 countries without using their passports at all, thanks to the existence of the European Union and the Schengen zone.

For these citizens, travelling with just an ID card is possible, making freedom of movement simple.

With that in mind, perhaps the drop from top spot in this ranking won’t make too many Spanish citizens unhappy after all.

Author

  • Daniela Daecher is a twenty-something bookworm and coffee addict with a passion for geeking out over sci fi, tv, movies, and books. In 2013 she completed her BA in English with a specialization in Linguistics. In 2014 she completed her MA in Linguistics, focusing on the relationship between language and communication in written form. She currently lives in Munich, Germany.

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Cruise caps and cutting off power: European cities get serious on overtourism

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Valencia, Budapest and Athens are all putting in place new legislation to tackle overtourism and illegal short-term accommodation.

As the main tourist season winds down, cities are putting in place legislation to control overtourism and crack down on badly-behaved visitors alongside landlords who run illegal accommodation.

Valencia in eastern Spain has announced its plans to cut off electricity and water for illegal tourist accommodation in the city.

The mayor, María José Catalá, believes that the providing of too much water and electricity to short-term lets has a serious impact on permanent residents.

Local media reported that she told the State of the City Debate the existence of tourist apartments “impacts the price of rents, displaces the population,… implies the gradual disappearance of local commerce in favour of shops for tourists, and implies an imbalance in public provisions” which favours tourists over locals.

Catalá appears to be taking the situation very seriously. On behalf of the city council, she has requested the power to sanction illegal tourist apartments, and impose fines of up to €600,000 on landlords who refuse to comply with the new laws.

Records show that, under Catalá, inspections of tourist apartments have increased by 454 per cent this year alone and that police activity against illegal tourist apartments has risen from 73 reports in 2022 to 449 so far in 2024. The closure of some 278 illegal residences has already been ordered this year.

Valencia is following in the footsteps of Seville

The move comes after the council of the southern Spanish city of Seville was told it was within its rights to cut off the water supply to illegal tourist accommodation.

Before the decision was made in late August, Seville had already disconnected the supply to six apartments which were found to be illegal.

While three of the owners appealed, the judge accepted the council’s argument that the apartments were not the owners’ residences, instead taking the sides of neighbours who had complained about noise.

Seville’s council believes there are some 5,000 illegal apartments in the city, in addition to 10,000 legally licenced ones.

Officials confirmed that the water supply would only be restored once the apartments have reverted back to being regular residences.

Tourism in Seville has boomed since the end of the COVID pandemic. The city of just 700,000 people has seen an influx of around 3.5 million visitors a year, most of them choosing to stay in the small historical centre.

Valencia is also considering restrictions on cruise ships in the city

Back in Valencia, and the mayor has also suggested that the city may move to change the rules on cruise ships docking there in the future.

Saying the issue of the boats “deserves reflection” Catalá floated the idea of “limiting and reducing the arrival of mega-cruise ships”.

She announced that there are plans in the works to set up a permanent group with members of the City Council, the Port Authority and the cruise sector “to regulate cruise traffic”.

“We want to design a shared social and environmental sustainability strategy for cruises and ensure quality cruise tourism, seeking the deseasonalisation of stopovers, the distribution of the flow of cruise passengers at the destination and planning,” she said.

Catalá also indicated her team will “prioritise those ships that use Valencia as a base port, that is, those that spend the night in the city and, therefore, that generate a greater economic impact and… seek quality tourism.”

Budapest plans to ban short-term rentals

Hungary’s capital is also cracking down on overtourism, and has just announced it will be banning all short-term rentals in the city.

Budapest residents narrowly voted to ban this form of accommodation – but it won’t come into effect until 1 January 2026.

It won’t be a sweeping measure, however.

From 2026, the ban will only affect one small part of Budapest, District VI, also known as Terézváros.

Despite its relative diminutive size, the ban will likely be felt with some significance as it’s one of the most densely populated areas of the city.

54 per cent of people living there voted in the affirmative on the ban and it’s now suggested it might be just the first of such decisions to be made.

Victor Orban’s government has reportedly been keen to put bans like this in place across the country.

Many people in Hungary are unhappy over short-term lets contributing to an ongoing housing shortage as well as unaffordability for local residents.

Athens will ban some new short-term lets from 2025

Greece’s capital has also announced its plans to ban new short-term lets from 1 January 2025, although the move only seems to be temporary at the moment.

Just one day after the Budapest decision, Greece’s government has announced it will stop issuing new short-term rental licences in the first, second and third municipal districts in the centre of Athens

For now, the restriction will only remain in place for 12 months.

After that period, authorities will take a close look at whether the ban has had enough of an impact on overtourism and the local housing situation before deciding whether or not to extend it.

Previously, the government had only wanted to test out the scheme for 90 days, but it was soon decided that would not have been long enough.

Instead, the year-long trial will apply to districts where short-term lets comprise more than 5 per cent of the total housing stock and, therefore, have a noticeable impact on the lives of residents.

Authorities in Athens will also work with landlords to encourage them to be more considerate to locals and the environment.

Athens tourist tax to rise

Following a summer of natural disasters related to climate change, the local government will impose a daily tax on short-term rentals to deal with the ongoing crisis.

During the busy April to October period, the tax will increase from the current €1.5 a day to €8.

In the low season, it will go up from €0.50 to €2 per day, according to news agency Reuters.

Despite overtourism and forest fires, which have seen countless evacuations, 2024 is set to be a record year for Greece in terms of tourism revenue. It’s expected the country’s income from the sector could reach up to €22 billion by the end of the year.

Such measures haven’t affected other European tourism hotspots too negatively in the recent past.

In August, following the lead of cities like London, Dublin, Amsterdam and Paris, the Czech capital announced it’s planning to limit the amount of short-term tourist accommodation available.

Prague’s authorities are hoping that the proposed move will bring down real estate prices – and ensure residents are not forced out by tourists.

Barcelona has gone one step further still.

The popular Spanish coastal city has announced plans which, it hopes, will eliminate all tourist rentals by 2028. Reaction has been mixed there, however, among local Catalans and the city’s large foreign-born population, which has now reached a significant 25 per cent.

Author

  • Daniela Daecher is a twenty-something bookworm and coffee addict with a passion for geeking out over sci fi, tv, movies, and books. In 2013 she completed her BA in English with a specialization in Linguistics. In 2014 she completed her MA in Linguistics, focusing on the relationship between language and communication in written form. She currently lives in Munich, Germany.

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Want to explore Japan outside of Tokyo? This airline is offering free domestic flights

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Japan Airlines says the promotion is designed to provide a “seamless travel experience” across the archipelago.

Japan Airlines is offering some international travellers free domestic flights to explore more of the country.

The airline’s domestic network includes services to 64 airports on 133 routes. It hopes the free flights will encourage passengers to delve deeper into regions of Japan they wouldn’t normally explore.

That includes experiences like visiting Kyoto’s 17 UNESCO World Heritage Sites or getting away from the big city in the magical landscapes of Hokkaido in the north of the country. Or in Kagoshima, known as the gateway to Japan’s southern islands, you could experience some of the country’s top outdoor adventures.

Japan Airlines says the promotion is designed to provide a “seamless travel experience” across the archipelago.

It could also help to ease overtourism in some of the country’s most popular destinations – such as Mount Fuji, which has had to introduce entry fees and daily visitor caps to reduce crowding.

Earlier this year, surveys from more than 21 million passengers in 100 countries flying with more than 350 airlines named Japan Airlines as one of the best in the world.

How to get free domestic flights with Japan Airlines

The offer means you can get complimentary domestic flights if you book an international flight into the country with the airline. To qualify, both a Japan Airlines international flight and a matching domestic flight must be booked in the same reservation.

A stopover fee applies for passengers from the US, Canada, Mexico and China if they plan to stay in their first destination for more than 24 hours before travelling on.

Currently, the offer is only open to travellers from the US, Canada, Mexico and Thailand. It will open up for visitors from Singapore on 18 September, Australia and New Zealand on 19 September, Vietnam and the Philippines on 25 September and Indonesia, India, China and Taiwan on 27 September.

Japan Airlines also says it plans to expand the list of eligible countries later in September.

The offer also has a generous baggage allowance. If you purchase a Japan Airlines domestic flight fare from outside of Japan, economy class passengers can check in up to two pieces of luggage weighing up to 23 kg.

Author

  • Daniela Daecher is a twenty-something bookworm and coffee addict with a passion for geeking out over sci fi, tv, movies, and books. In 2013 she completed her BA in English with a specialization in Linguistics. In 2014 she completed her MA in Linguistics, focusing on the relationship between language and communication in written form. She currently lives in Munich, Germany.

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