The European Union is moving to phase out golden visa programs, but Hungary is bucking the trend by reinstating its own version, potentially boosting its travel and investment sectors.
Golden visas have provided affluent individuals an alternative route to live and work abroad, bypassing the more complex and time-intensive processes typically required for residency. These visas, which don’t usually mandate residence in the host country, have surged in popularity among those seeking stability in uncertain times, including many from the United States and the UK post-Brexit.
Several European countries, however, are now opting to discontinue these programs. Spain, for instance, recently passed legislation that will likely end golden visas linked to property investment by January 2025. The decision, currently under parliamentary debate, may eventually restrict other types of qualifying investments. Similarly, Portugal removed real estate from its golden visa criteria in October 2023 to address rising property prices, while the Netherlands completely discontinued its program in January 2024.
In a contrasting move, Hungary reintroduced its golden visa, or Guest Investor Program, in July 2024. The scheme offers three residency pathways for investors, including a minimum real estate fund investment of €250,000, a property purchase worth at least €500,000, or a €1 million donation to a Hungarian educational institution. Applicants and their families also gain the added benefit of visa-free EU travel.
Aside from golden visas, some countries offer “golden passports,” allowing foreigners to gain citizenship through substantial financial investment. Golden passport holders within the EU enjoy free movement and additional privileges, a concern for the European Commission due to potential security risks and transparency issues. Heightened scrutiny followed the Ukraine crisis, leading Brussels to urge member states to reassess sanctioned individuals holding these visas or passports.
Concerns about golden visas and passports extend beyond Europe. The EU recently suspended visa waivers for Vanuatu due to its golden passport program, which grants Schengen access and raised alarms about potential security vulnerabilities. Similarly, the UK ended its golden visa scheme in early 2022, and Ireland discontinued its Immigrant Investor Programme in 2023, citing risks related to illicit finance.
While some EU countries have maintained their residency-by-investment schemes, such as Malta, where citizenship starts at €690,000, others like Italy and Greece continue to attract investors through residency pathways that require significant financial commitment.
Source: https://www.travelandtourworld.com/news/article/spainportugal-and-switzerland-phase-out-the-golden-visa-scheme-while-hungary-reintroduces-it-boosting-travel-sector/
