Why The Wealthy Are Chasing Golden Visas & Golden Passports

Golden Visas and Golden passports have become the hottest buzzwords in the world of the ultra-wealthy. But are they really the golden ticket to global opportunities, or just another flashy trend that will fade away? Let's break it down.

First, what exactly is a Golden Visa? It’s a special residency program that lets you live in a country by making a large investment—whether that’s buying property or starting a business. And if that’s not enough, there’s also the Golden Passport. Full citizenship in exchange for an even bigger investment.

A recent report by Henley & Partners reveals the hottest destinations for Golden Visa investments. These include Malta, Spain, Montenegro, Antigua & Barbuda, Grenada, and Portugal. These are the go-to spots where High Net Worth Individuals are pouring in their cash to secure that second passport or golden visas.

But here’s the big question… do countries really need more people?Take Greece, for example. A country, that has a struggling economy and a housing crisis. Greece’s Golden Visa Programme, launched in 2013, offered residency or citizenship in exchange for a minimum investment of 250,000 euros in real estate, government bonds or other approved vehicles. However, this program underwent a revamp as of 1st September, more than doubling the minimum investment required to qualify for a visa through real estate purchases. Indian investors rushed to buy properties ahead of this revamp, leading to a 37% surge in sales between July and August.But it’s not just about boosting economies.

The UAE’s Golden Visa program took a unique approach, granting 10-year visas to doctors and experts who played a key role during the pandemic. This was the first of its kind in the Gulf, a region where residency rules are typically strict. And now, countries like Saudi Arabia and Qatar are following suit to diversify their economies.Of course, it’s not all smooth sailing.

In 2022, Bulgaria and Malta suspended their Golden Passport programs for Russians and Belarusians, following the Ukraine invasion. Spain scrapped its Golden Visa scheme earlier this year, which had allowed investors to gain residency with a €500,000 property investment.

Spain took this step to combat skyrocketing property prices, making it harder for locals—especially young people—to find affordable housing.Between 2011 and 2019, more than 130,000 people obtained a Golden Passport or Visa, generating €21.8 billion for European countries.

However, recent years have seen a shift, with Southern European nations tightening or ending these programs altogether to ease housing market pressures.For example, Portugal ended its Golden Visa program in early 2023 due to surging house prices. And Greece recently raised its required investment to as high as €800,000.

In 2019, Brussels urged member states to crack down on Golden Visa schemes, citing their role in benefiting wealthy Chinese and Russian investors, and highlighting the potential for corruption and money laundering.

What do you think? Are golden visas and passports a win-win for investors and governments? Or do the inherent risks pose a bigger threat to countries offering this program?