by Kenny Fowler
Trying to gain a traditional visa can often be quite difficult and time-consuming. Golden visas can save you a lot of time and effort, for a price.
What is a golden visa?
A golden visa is issued to individuals who invest a certain amount of money in the issuing country. The visa can be a temporary or a permanent residency visa. The most common means of gaining a golden visa is through the purchase of real estate.
The origins of golden visas go back to tax havens in the Pacific and Caribbean, which initiated investment programmes that allowed for tax advantages and visa-free travel. In the early 21st century, the number of immigrant investor programmes has accelerated, with about a quarter of all countries offering these visas.
United States – EB-5 and E2
The United States grants permanent U.S. residency through the EB-5 visa to investors of certain government-approved projects in the U.S. This visa gives a recipient the right to live, work, study or retire in the U.S. Once the project is complete, the recipient can receive their entire investment back. The visa allows not only for the residency of the investor but also their spouse and any children under the age of 21. The required investment for obtaining an EB-5 is $900,000.
The E2 visa is an alternative to the EB-5 and can be obtained through certain countries which have an E2 treaty with the U.S. The required investment is $500,000, making it significantly cheaper than an EB-5. An E2 visa can also be faster than an EB-5. However, the E2 is a non-immigrant visa so in contrast with the EB-5, obtaining an E2 cannot lead to getting a Green Card.
United Kingdom – Tier 1 Investment Visa, Innovator and Startup Visas
The Tier 1 Investment Visa allows the recipient to obtain temporary residency in the UK, for the investor and his or her immediate family. The UK provides no direct path to permanent citizenship. The temporary residency lasts three years and four months. Applicants can apply to get this residency extended an additional two years. After five years, investors can apply for indefinite leave. This can be shortened with more investment. After six years, a recipient can apply for British citizenship. The Tier 1 Investment Visa requires a minimum investment of £2,000,000.
Until March 2019, the UK offered the Tier 1 UK Entrepreneur Visa. But at that time, it was replaced with the Innovator Visa and the Startup Visa. Unlike the previous entrepreneur visa, an applicant must now provide an original business plan that meets new or existing market needs. The applicant must also show they have the necessary skills, knowledge and market experience to be able to run the business.
For a startup visa, no funds are required to qualify. Recipients can live in the UK with their families for two years. The sole focus of the recipient during that time is developing their business. After these two years are up, a startup visa holder can apply for an innovator visa.
The innovator visa requires a minimum investment of £50,000. Recipients and their families can reside in the UK for three years. During these three years, the recipients will be required to focus solely on developing their business. Once the three years are up, the applicant can apply for an extension to stay another three years or to take up permanent residence in the UK.
European Union
Golden visas are handled by EU member states, but residency in an EU member country allows one to travel across much of the union without any additional documentation. Citizenship enables one to work or travel within the EU, and even to non-EU countries which have visa-free agreements with EU member countries. Here is a sampling of some of the best golden visas in the EU:
Portugal
Portugal has one of the best golden visa programmes. It is the original “Golden Visa” programme and is actually where the name came from! It was launched in 2012 to help bolster the Portuguese real estate market.
A real estate investment of €350,000 is required to obtain a residency permit that allows for a spouse and dependent children. You can apply for European citizenship after five years. The visa can be renewed every two years as long as the applicant spends two weeks in Portugal every two years. This visa also allows travel to all 26 countries in the Schengen Borders Agreement.
Spain
Spain began its golden visa programme in 2013. In order to gain residency for a family, a real estate investment of €500,000 is required. The visa can be renewed every two years. An applicant can apply for permanent residency after five years and citizenship after ten years. There is no requirement to live in Spain to retain or renew the residency permit but applying for permanent residency or citizenship requires you to have actually resided in Spain for five and ten years, respectively. Like the Portuguese golden visa, with the Spanish golden visa, you can visit all 26 countries in the Schengen Borders Agreement.
Ireland
The Irish Immigrant Investor programme was launched in 2012 but revamped in 2013. This enhancement allows applicants from outside the EU to gain residency in Ireland with a €1 million investment in an Approved Investment Fund. Prospects must be found of good character, have a clean criminal record, and they must demonstrate a minimum net worth of €2,000,000.
Other Countries
St. Kitts and Nevis have one of the oldest golden visa programmes in the world. It was created in 1984 to grant citizenship through donation or real estate investment to those applicants who qualify. The government requires an investment of $150,000 to the Sustainable Growth Fund or an investment of $400,000 in real estate. The real estate can be reduced to $200,000 for those investors with connections to the islands. These figures do not include any fees.
Conclusion
Golden visa programmes are a way for countries to increase investment in their own countries by granting residency to foreign investors. Whether they are used simply as a way to invest and keep an eye on your investment, a strategy for making travel easier or even as a means of gaining better educational or professional options for your kids, golden visas can provide a path to a better life.
