Golden Visas vs. Golden Passports: What’s The Difference?

In times of political and economic uncertainty, it’s no surprise that more people are looking for ways to migrate to other countries.

Over the past few decades, one of the main ways wealthy people have managed to do this is through golden visa and golden passport programmes, which allow them to gain residency or citizenship in exchange for an investment into the country.

And whilst they might sound like a good idea, these programmes aren’t without their issues.

In fact, just this week, the EU’s top court ruled against Malta’s golden passport programme, with the EU’s Court of Justice saying that the scheme “amounts to rendering the acquisition of nationality a mere commercial transaction” according to The BBC.

But what is the difference between a golden visa and a golden passport?

Let’s take a look…

 

Golden Visas vs. Golden Passports: What’s The Difference?

 

Golden visas and golden passports are both ways for people to be legally allowed to live (and sometimes work) in a country in exchange for an investment.

But what you get in return for that investment is slightly different with each programme…

Golden visas: Golden visas are a way to get residency to a country, usually for a specific period of time. In exchange for an investment, people can usually live, work and access public services in the host country. Whilst this may lead to citizenship over time, it isn’t always guaranteed.

Golden passport: Golden passports on the other land give investors citizenship, including all associated rights with that country’s passport. This means political rights (including voting), travel rights and other benefits of citizenship. However, if the country does not allow dual citizenship, the applicant may have to give up one of their passports in the process.

 

 

Malta’s Golden Passport, Why The Controversy?

 

Whilst many countries across Europe like Greece and Portugal have popular golden visa schemes, Malta’s Citizenship by Investment Programme was one of the more well known golden passports.

For €600,000, buying or renting a property and donating to charity, wealthy investors could get Maltese citizenship and with it, full EU rights.

As Malta is part of the European Union, where free movement is allowed, this meant that anyone with a Maltese passport would essentially have the right to live and work anywhere in the EU. For that reason, it became a sort of back-door entry point into Europe.

No surprise then that this didn’t go down well, and this week the EU Court of Justice argued that Malta’s golden passport programme should be scrapped.

Malta has responded by saying it still supports the programme, arguing that citizenship is a national matter, not an EU one. However, it’s unclear what the way forward is, as failure to comply with EU law may lead to fines and it certainly sets a precedent for other countries in the EU looking to explore similar programmes.

 

Why Are Golden Passports Controversial?

 

Unlike golden visas, which only apply for a temporary amount of time, golden passports give investors full citizenship rights in their chosen country.

What this means, is that any agreements that country has with others can be tapped into by these investors – making them more complicated.

In Malta’s case, their decision to have a golden passport actually affects the entire EU, but with only Malta financially benefitting from it. It’s no surprise then that the EU court has ruled against it – though it does raise questions around how viable golden passports are in general.

 

Are Golden Visas Better?

 

Golden visas are another popular option for those looking to move elsewhere in the world. This is for a number of reasons, including:

• Maintaining citizenship: For countries that don’t allow dual citizenship, golden visas allow investors to maintain their passports but still have full residency rights elsewhere. This makes it a ‘win-win’ situation of sorts.
• Relatively easy to obtain: The process for getting a golden visa is usually relatively straightforward with clear expectations around investments.
• Non-committal: Golden visas allow investors to try living in different countries without committing to full citizenship. In many cases, these programmes do eventually lead to the opportunity to get citizenship, so it’s a good way to test the water before diving right in.

 

Golden Visas vs. Golden Passports: Which One Is Better?

 

Whilst there is no set answer, both golden visas and golden passports are great ways to gain access to a country.

Whilst one provides residency with citizenship down the line, the other is a way to get full passport rights straight away. However, with the new ruling in Malta, it will be interesting to see if golden passports in other countries come under similar fire.

One thing is for sure – as geopolitical tensions rise, it will be interesting to see which countries attract and retain the world’s wealthiest investors. We will certainly be watching!