What is a Golden Visa and How Does it Work?

The value of so-called “powerful passports” is a concept particularly familiar to citizens from countries who hold fairly weak passports.

Counter-intuitive, perhaps, but it tends to be those who know what they’re missing that are the ones who really appreciate the value a passport can provide, rather than those who actually reap the benefits of said “powerful passports”.

Indeed, armed with a strong passport in your pocket, you can visit many, if not most, countries in the world without a visa or really any fuss.

However, for those cursed with a weak passport, travel can be far more complicated. It requires not only applying for visas but paying for them too, which can be both time-consuming and expensive – never mind exhausting.

And, the worst part is that there’s never any guarantee that you’ll actually receive the visa you’ve applied for – the powers that be may very well deny your application, and if that happens, there’s very little you can do about it.

These days, there’s another option on the table: the golden visa. That is, the residency and citizenship by investment programme.

Of course, the concept of a golden visa has been around since the ’80s, but recently, more and more countries have bought into the concept.

But, what is a golden visa and how does it work?

 

What is a Golden Visa?

 

A golden visa refers to the process by which individuals apply for and are granted either residency or citizenship in a specific country in exchange for a predetermined economic contribution to the country in question.

Understandably, the shorthand, so to speak, for a golden visa is a “visa for citizenship or residency by investment”. Essentially, the programme allows individuals to buy access to a country in such a way that the economy of the country benefits.

The burning question is, what kind of investment is required, and, along the same lines of enquiry, how much are we talking?

Well, the bad news for most ordinary people is that golden visas are aimed at high-networth individuals (HNWI), giving them the option to relocate to an area favourable to their lifestyle, business or anything else.

The reason for this, however, it’s very logical from the perspective of countries giving out golden visas. That is, countries want to attract people with money that they can invest in the economy of the country, which is why other types of visas tend to require proof of visa holders’ ability to perform highly skilled jobs and so on.

Unfortunately, however, this means that ordinary people who aren’t swimming in cash most likely won’t have the financial capacity to invest in a golden visa.

The other factor to consider, however, is that not all countries offer the golden visa as an option. In fact, the list of countries that do offer it is very limited, and each country has its own special golden visa program that offers different investment opportunities and options.

A few of the most sought-after golden visa countries include Thailand, the US, the UK, Italy, Hungary, Turkey, Spain and Portugal. Altogether, there are about 100 countries around the world with golden visa legislation.

 

What Are the Benefits of a Golden Visa? 

 

The idea behind a golden visa is that it not only gives you access to travel to the country in question, but it also provides with full residents’ rights – that is legal rights including the right to live, work, study and have access to healthcare.

In addition to the basic rights it affords holders, however, a golden visa also provides holders with access to new markets and far broader opportunities in terms of business, lifestyle, healthcare, career, education, tax and more.

Here are some of the other most sought-after benefits of a golden visa:

 

• Extensive business and lifestyle opportunities
• High quality of life
• Access to high-quality healthcare facilities and educational institutions
• A safe and secure place to live
• Visas for the whole family, in some cases
• Possible return on investment

 

Most of all, however, a golden visa has the potential to provide you with the freedom to move around and travel in a way that the passport of your birth does not allow.

Naturally, these benefits are particularly valuable to investors coming from more volatile countries whose passports aren’t particularly powerful.

 

 

How to Apply for a Golden Visa

 

To qualify for a golden visa, there are several things you need to do a variety of requirements you have to meet, in addition to having the funds. Applicants must:

 

• Be 18 years or older
• Have no criminal record
• Have medical insurance
• No serious medical issues
• Prove sufficient funds
• Show legality of income

 

Now, these are the most basic requirements applicants need to meet, and the most important one of all is an applicant’s proof of income. After that, however, the path to getting a golden visa becomes far more clear.

Different countries offer varying programmes and specific ways to obtain a golden visa, but a few of the most common and popular methods include via:

 

• Real estate
• Bank deposits
• Contributions to national development
• Investment funds
• Government bonds
• Arts and culture
• Business investments

 

The exact terms of these investments are totally dependent on each country, varying in terms of the exact funds required for the investment as well as the specific terms.

Golden visas, however, are not cheap. In fact, some of the cheapest options cost at least $150,000, with countries like Malta, Dominica and the UAE among the most cost-effective countries on the list.

Are Golden Visas Worth It? 

 

At the end of the day, it all depends on the specifics of the situation – the financial position of the individual in question, the country of choice, the price and terms of investment and more.

Undoubtedly, golden visa programmes are designed with the intent of creating incentives for wealthy people around the world to invest in foreign economies, and they do so by promising one of few things with more potential value than money – citizenship.

Ultimately, golden visas benefit the wealthy and help countries stimulate their economies with foreign investment.