Is the end of the age of migration through investment in Europe?

For many years, many applicants to immigrate to European countries in order to enjoy the rights of European Union citizens have obtained residence in these countries through various investments. But according to the latest news, some European countries have stopped issuing investment visas to foreign applicants for some reason. Although the path of immigration for work, education and other residence visas of these countries is still open to foreign applicants. This article examines whether the era of migration through investment in Europe has come to an end.

The official end of the golden visa era in Europe

The Portuguese government suspended its Golden Visa program in part due to problems related to the lack of housing for its citizens.

In 2020, the country of Cyprus stopped the program of obtaining citizenship and citizenship by investment (similar to the golden visa but with citizenship and citizenship and not just obtaining a residence permit).

In February 2022, the UK ended its foreign investment program and the visa process Invest in England stopped

In January 2023, EU satellite country Montenegro stopped its citizenship by investment program.

And now, that seems to have turned the tables, as Ireland and Portugal both abruptly suspended their golden visa programs within a week of each other in February this year.

Ireland abruptly canceled its citizenship-by-investment program on February 15.

Just days after Ireland’s announcement, Portugal also announced that it would end its golden visa program, and on July 19, the Portuguese Parliament passed the law. Although this law must be signed by the president to be implemented. Perhaps in September, the death knell of the Portuguese Golden Visa program will also sound.

Golden Visa history

Golden visas are residence permits that each country grants to qualified applicants based on the capital required to launch construction, research, or manufacturing projects. Following the financial crisis of 2008, several European countries launched and implemented these programs.

The concept was simple: spend some money in this country and get the right to live and work in this country.

Golden Visa program by investing in real estate (usually $500,000 or more), starting a business (in the form of a business corporation) within that country, or making a deposit in an approved bank fund or buying government stocks and bonds. It is the country. These programs are attractive to wealthy investors from non-EU countries because they provide visa-free access to the entire Schengen area, i.e. around 27 countries. In addition, they enjoy the rights and rights of European citizenship and other amazing benefits of obtaining citizenship and citizenship of a European country.

Portugal was the first country to implement the golden visa program. Later, Spain, Greece, Cyprus, Italy, Ireland and other countries also followed this program. But now, this “golden age” of residency and citizenship programs appears to be coming to an end.

Why are these visas under threat now?

The European Commission, the governing “executive committee” of the European Union, is not very interested in investment visas and golden visas, and on the one hand, it has done everything it could to discourage countries from implementing and issuing the golden visa program, and on the other hand, Attempts to stop the process of issuing golden visa applications.

Portugal’s final decision

Portugal’s golden visa program is the biggest loser.

Through Portugal’s golden visa program, you can obtain EU residency for a minimum of €250,000 and you only need to stay in Portugal for one week a year to maintain this visa. After 5 years, with the necessary conditions, you can get an EU passport and live and work anywhere in the 27 countries of the Schengen area without any restrictions.

According to the new law, there will be several options for obtaining a Portuguese residence permit for investment applicants, including an investment of 250,000 euros in Portuguese cultural or heritage projects, an investment of 500,000 euros in research and scientific projects, or an investment of 500,000 Euro to start a business that creates 5 permanent jobs for Portuguese citizens. But buying a house and property in Portugal no longer makes you eligible for Portuguese citizenship.

Of course, buying a house in exchange for obtaining Portuguese citizenship was the most popular and most requested part of the golden visa program, and the only important reason that had attracted the attention of many immigrants until now was buying a house and property and obtaining Portuguese citizenship.

My lawyer in Portugal, João Gil Figueira, explained a little about the suspension of the Golden Visa program and revealed the story behind the problem.

The story is that the investment option through the purchase of Golden Visa properties increases the price of houses and housing. But investors buying houses and properties through golden visas are a very small percentage of home and property buyers in Portugal and even a small percentage of foreign buyers. Therefore, it is not logical that they are the main reason for the sharp increase in real estate prices.

My lawyer said: “In the daily news, many promises are made about the problems related to the lack of affordable housing. But the government must do something important to increase affordable housing and not just make sweet promises.”

In fact, the golden visa is considered as a victim of the high house prices in Portugal, and the government should do something about it. Therefore, the Portuguese government approved the new “more housing” law.

According to this law, all golden visa applicants must comply with the new rules. According to these new rules, applicants must live full-time in their purchased property or house in Portugal, or rent these houses, or stay in Portugal for more than 180 days a year.

There were many reactions to this new law.

“If you suddenly remove a program like the golden visa program for previous applicants, it will be a stain on Portugal’s reputation as a favorable destination for foreign direct investment.”

So the government backed down.

The final version of the recently passed law allows Golden Visa real estate investors to keep their Golden Visa under the same conditions as before, which is a big win for these investors. But there are still several options for obtaining residency through investment, but buying a property will no longer be one of them. There are still good reasons to invest in buying a house and property in Portugal, including the potential for good returns from renting a house and property, as well as the trend of house prices increasing each year and making a profit from buying a house. If you plan to have a house and property in Portugal and live there, you can get your residence permit by living and staying in Portugal. This also applies to applicants who rent a house.

Retirement Visa D7 Portugal

The popular Portugal D7 retirement visa is still issued to qualified applicants. This country has recently introduced the new digital nomad visa for work tour applicants. In addition, if the government’s “More Housing” law has a big impact and lowers house and property prices in this country, we will witness a new and exciting moment for buying in one of the best markets in Europe. Although the golden visa period may be coming to an end, Portugal still shines as a great destination for international applicants for many reasons.

There is still a golden opportunity

If you are interested in living and investing in Portugal or any other country in Europe, stopping the process of issuing these visas is not necessarily negative and can be a positive step. The suspension of golden visas may cause prices to fall in the real estate market, and this is a great opportunity to buy. You may no longer be able to obtain Portuguese residence by buying a house or property, but you can still purchase a house and property in a European country in order to invest or improve your lifestyle and obtain a residence permit through the traditional route of usual residence in this country. Get that country.

And there are still opportunities to obtain a European residence permit through an investment-like program Invest in England There is.

Greece implemented changes to its Golden Visa program this year, effective July 31. The capital required to obtain a Greek Golden Visa has changed from 250,000 Euros to 500,000 Euros, but no law has been announced to stop the issuance of Golden Visas.

Spain, Italy and the island and sunny country of Malta also continue to issue golden visas. Although the country of Italy does not have the option of investing through the purchase of a house and property, and in fact applicants cannot obtain a residence permit and citizenship of this country by purchasing a house and property in Italy.

And since the end of the initial agreement to obtain citizenship and citizenship through investment in 2020, Cyprus is implementing the new golden visa program and issuing this visa to foreign applicants.

Action time

If you have the necessary capital for various investments in European countries and want to obtain a residence permit for EU member states, although several options have now been eliminated, the borders of Europe are still very open to foreign applicants and North American citizens.

Now is the time to choose your Golden Visa.

Before it’s too late.

Conclusion

Buying a house and property, getting a retirement visa, getting a financial visa, getting an investment visa, etc. are among the methods of investment migration to European countries. Although some European countries do not grant citizenship through the purchase of a house or property, investing by buying a house and renting it in the short and long term can be a profitable activity. In addition to the investment visa, most European countries also grant golden visas to qualified applicants. This visa has many privileges, including freedom of movement to Schengen countries and other countries of the world, and ultimately leads to obtaining the passport of that country. Applicants who intend to invest in European countries can obtain a European investment visa in the shortest time and at the lowest cost through the Estehbanati Immigration Institute.