Golden visas giving non-EU citizens residency status in Europe are being gradually squeezed. Buying real estate to qualify is no longer acceptable in some countries while others are quietly raising the required price thresholds.
But don’t think not having residential property ownership as an option means your fast ticket to European residency is off the table.
Far from it. Most countries offer alternative forms of investment for their golden visas. These include investment funds or other schemes geared towards visa applicants who want a hands-off investment. Let’s take a closer look.
As we speed towards 2025, the golden years of golden visas granted off the back of buying a home somewhere desirable in Europe are coming to an end. The trend to rein in availability of these handy investment visas is being driven by a combination of pressure from the European Commission and local economic conditions – predominantly inflated house prices, in individual countries.
For now though, this route to flexible European residency, suited largely to wealthier non-EU citizens, remains well and truly open. While many EU states do still offer the real estate option, alternative avenues of investment increasingly are the more feasible option and being offered more widely.
Portugal, historically one of the most popular destinations, tweaked its golden visa rules a few times after launching it in 2012. But the major changes came in 2024 when applications through property-related purchases stopped being acceptable.
Things are looking more drastic in Spain, thanks to a bill abolishing the golden visa currently awaiting final parliamentary approval. Robin Thornton at international financial services company Holborn Assets said in a recent Your Overseas Home webinar that if plans continue on their current course, the Spanish scheme could feasibly be scrapped as early as mid-March 2025. The government there could still agree to go the same route as Portugal and continue to offer the non-real estate investment options. Or they might delay things even more. Watch this space!
This year Greece raised the minimum price of property purchased for its golden visa in both of its bands (it has a higher threshold in Athens and certain islands compared to rest of the country, and a lower one still for restoration properties). Like Cyprus, which also has a real estate option, it too offers the choice of investment funds.
The investment fund route
The first step for anyone ready to apply for a golden visa is to speak to an experienced international residency by investment provider. Holborn Pass, a specialist investment visa division of Holborn Assets, is a good example.
Your consultant will help you decided which country’s scheme is best for your personal situation. Assuming the real estate option is not available or you’ve decided against it, your consultant should be able to present you with a choice of investment funds suitable to your individual requirements, depending on your appetite for returns and levels of risk.
Most consultancies will be able to suggest a choice of funds, ones they have researched and they are familiar with. Depending on the jurisdiction, these can include venture capitalist, private equity and other mutual funds.
Unsurprisingly, fund managers have been quick to identify funds and often create new ones suited to golden visas investors – some with incentives. Any fund proposed to you should meet local regulatory standards and have government approval for golden visa applications in that country – your visa consultancy should have done all the necessary due diligence.
In Portugal, applicants must invest at least €500,000 for a minimum of five years in one or more investment funds. To get government approval, funds must invest a minimum of 60% in Portuguese companies. By comparison, the minimum investment amount in Greece is €400,000, €300,000 in Cyprus and – for now – €1milllion in Spain.
Like all investments, the expectations are that you’ll benefit from capital growth over the duration of the investment, which you’ll benefit from when your investment matures. Of course, this can never be guaranteed. The conditions of your golden visa will require you to remain invested in the fund for a minimum number of years, dependent on the country and the requirements for qualifying for permanent residency or citizenship. There is usually the option to remain invested longer though.
Investment examples
Recent funds offered by Holborn Pass to applicants of Portugal’s golden visa include one that invests in a luxury hospitality resort in the Silver Coast. The hotel there opened in 2021 and is achieving occupancy rates of 87%.
The scheme includes an immediate compensation payback of six years’ worth of gross rental income, equating to €101,000. Which means the capital required by investors is only €399,000 (as opposed to €500,000). This could be reduced further to €325,000 by using the scheme’s €74,000 loan option.
The fund offers a guaranteed €500,000 buyback in year six or the option to take full ownership of a one-bedroom apartment at the resort. In addition, investors get six weeks complimentary stay at the resort each year.
Another Portuguese option available through Holborn Pass is the €1.4billion Oxy Capital Fund that invests in private equity and public markets spread across more than 100 sectors.
The other non-real estate options
In many instances, investment funds are not the only non-real estate option for golden visas. Government and corporate bonds, equities, job creation, bank deposits, charitable donations, cultural projects, local companies and start-ups are other common types of eligible investments.
