Spain recently announced its intention to end the Golden visa scheme for foreign property buyers in exchange for residency or citizenship; while Greece raised its minimum investment threshold to €800,000 in some regions.
These moves aim to restrict the scheme or bring it to a conclusion in most countries. One of the main reasons behind this is the growing unease over the negative side of these golden visa programmes, particularly inflation of real estate prices and allegations of corruption.
For wealthy Nigerians who have sought a golden visa as a route to residency or citizenship abroad, these changes could have a profound impact.
Many affluent Nigerians had started to consider the golden visa as a “Plan B” in a world of increasing uncertainty, providing them with greater mobility, security, and investment opportunities.
The potential end of these programmes would limit their options, forcing them to explore other, potentially more costly or restrictive avenues for securing foreign residency.
As more wealthy investors flocked to countries like Portugal and Spain, local housing markets experienced significant price hikes, making property unaffordable for many residents.
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Downsides of the scheme
In 2013, Spain launched its residency by investment programme, enabling affluent individuals from outside the EU to secure residency permits by investing at least €500,000 in property or certain businesses.
However, in April, the government revealed plans to phase out the real estate investment option, which accounts for 94 percent of all applications, as a measure to alleviate pressure on the housing market.
Pedro Sánchez, Prime Minister and leader of the Socialist Party in Spain emphasised that the reform is aligned with his government’s objective of prioritising housing as a fundamental right, rather than allowing it to become a vehicle for speculation.
Nevertheless, more than three months after the announcement, the scheme remains active, prompting criticism from Sumar party members, who are part of the governing coalition.
Other countries such as Portugal, Ireland and Greece have taken measures, “…to end this practice that increases the violation of the right to housing,” MP Alberto Ibáñez, Prime Minister of Spain said, urging the government to quickly repeal the visa.
Potential loophole for tax evasion
The golden visa programme, once an attractive option for wealthy individuals seeking alternative citizenship or residency through financial investment, is now considered living on borrowed time and may not exist for much longer.
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Additionally, the European Union has increasingly viewed these programmes as potential loopholes for tax evasion and money laundering, leading to a push for greater oversight and tighter regulations.
Originally introduced by European countries like Spain, Greece, Portugal, and Italy during the European debt crisis, the programme aimed to attract foreign capital by offering residency or citizenship in exchange for investment.
However, as the popularity of golden visas grew, concerns over their long-term impact have prompted stricter regulations and the potential discontinuation of the scheme altogether.
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Several countries have already taken action to restrict or completely end their golden visa offerings.
EU countries still offering golden visas
Only a few countries within the EU continue to offer golden passports, with Malta being one of the exceptions.
In the Island of Malta, the minimum investment required begins at €690,000, granting citizenship within a period of 12 to 36 months. However, many other nations, such as Italy, Greece, and Hungary, still provide golden visa schemes.
These developments point to a wider trend, with more countries likely to phase out their golden visa programmes in the near future.
