Countries such as the UK, Ireland, Portugal and the Netherlands have already decided to change or stop their Golden Visa program altogether. This change shows the wider focus of the governments and their priority on valid economic partnerships than just generating income from investment funds. The change could create frustration for affluent individuals seeking alternative paths to citizenship by investment as they grapple with a changing global landscape of residency and citizenship programs.
Estehbanati Institute seeks to inform you as much as possible by covering immigration news. In this article, we examine the reasons for the cancellation of some popular Golden Visa programs and the implications for those seeking citizenship by investment.
England
In February 2022, the UK government decided to end its Tier 1 investor visa program, commonly referred to as the “golden visa”. The reason for this action was the government's concerns about money laundering and abuse of some people. Running for over a decade, the program has successfully attracted billions of pounds of investment into the UK economy, but unfortunately, the UK's Golden Visa scheme has the potential to facilitate illegal activity.
Ireland
In the first months of 2023, Ireland also took a similar action with England and announced that it has stopped its immigrant investor program, which is called “Golden Visa”. This decision was made in response to the concerns of the Irish government about the impact of the program on people's ability to buy a house and its role in increasing property prices. Immigrant investors program was implemented since 2012 and successfully attracted more than 1 billion euros of investment, which caused many foreigners to immigrate to this country.
Portugal
In January 2023, Portugal tightened the rules by unveiling major changes to its Golden Visa program, effectively eliminating the option of obtaining residency through real estate investment in major cities and coastal areas. The government aims to redirect investments to underdeveloped areas while promoting investment in venture capital funds, research work and heritage projects.
According to SchengenVisaInfo.com, the approval of new changes to Portugal's Golden Visa program, as part of the “More Housing” bill, will not affect property values as housing prices are expected to increase by 8.7% next year.
Netherlands
In September 2023, the Netherlands announced that it plans to end its investor visa program, known as the “Golden Visa”, from January 2024. The government's rationale for this decision was rooted in concerns about the program's effectiveness in attracting credible entrepreneurs and the government's sensitivity to people with dubious backgrounds.
Reasons for cancellation of golden visa programs
The decision to change the Golden Visa programs stems from concerns including money laundering risks, housing affordability issues and a lack of transparency. For governments, it is now a priority to attract productive entrepreneurs and innovators who purposefully contribute to their economy. This change affects the acquisition of citizenship by investment applicants because they have to look for alternative ways such as real business investments or special participations in the purchase of shares, etc.
Investors may also consider countries that have stricter processes to ensure that their investments benefit that country's economy.
Impact on the citizenship of investment applicants
Suspension or modification of Golden Visa programs will significantly affect high net worth individuals seeking destination country citizenship through investment. These individuals must now explore alternative avenues, which may include programs that require actual business investments or specific partnerships. In addition, they can consider investing in countries that have stricter procedures to ensure the legitimacy and positive impact of their investments on the local economy and accept less risk.
final word
The golden visa program was considered an ideal opportunity for people who had sufficient financial resources and were looking for investment and profit in other countries, but unfortunately, with the cancellation of this program, investors have to choose other ways to obtain citizenship. Estehbanati Institute is the best immigration institute in Isfahan, which guides you dear ones in this ups and downs path with the knowledge of the most up-to-date information related to investment. Get in touch with us.
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