Raheel Sheikh, Found and CEO of Acquisitions Entrepreneurs.
I have observed a massive surge in the wealthy seeking golden visas or second passports, driven by political and economic instability, regional volatility and declining security and peace worldwide.
Since 2012, these programs have raised around $25 billion across Europe. This was particularly accelerated during the pandemic and the subsequent war in Ukraine, with programs like golden visas becoming a part of the contingency plan for many affluent individuals.
Investors are also drawn to the economic benefits, for golden visa programs typically involve real estate investments or other business opportunities that can yield profitable returns. Additionally, residency in a stable, well-developed country can provide access to high-quality healthcare, education and a favorable tax environment. For many, the golden visa is a pathway to a more secure and diversified lifestyle.
The Surge In Golden Visa Applications
While the golden visa program may appeal to affluent individuals from less developed nations, investors from the U.S. and the U.K. make a large percentage of beneficiaries of such programs, which offer their own versions of golden visas, have seen a surge in the number of investors seeking a golden visa with a particular interest in the EU and Caribbean. According to a survey, almost 60% of the U.S. investors cited it being a “Plan B,” while some seek lower cost of living and cheaper education.
Various governments initiated schemes to take advantage of golden visas and boost their countries’ economies. The formula for those seeking the visa was simple: Invest in the economy, usually in real estate, for a certain number of years and get a new nationality.
Social media has been observed to have a great role in raising awareness and even influence people to opt for golden visas. In fact, my organization has been involved in social media marketing and has had success in acquiring clients through this means.
According to an article in Firstpost, a YouTube video, “Countries for Americans Who Want to Leave the US,” has amassed over 500,000 views and 4,000 comments in two weeks, while a Reddit thread on “Emigrating After the US Election Results” got over 1,000 comments in the same timeframe.
But this massive surge has also caused various problems for countries. Portugal saw a massive spike in prices and rents in the residential sector, where investors bought and rented out their residential properties; this sparked outrage among the locals and led to massive protests. The government changed the policy drastically, “officially discontinuing the real estate option.” However, while real estate investments are often viewed as the most investor-friendly option, there are still other ways.
Understanding The Business Landscape In Your Target Location
Finding the right business idea for a particular city or neighborhood requires careful research. There are many options to consider, from everyday services like laundromats and gas stations to more specialized businesses like IT companies. Another good approach is to buy an existing business that is already successful and generating income.
Investors seeking golden visas can develop housing or apartment buildings, potentially purchasing land and using turnkey construction. While EU and U.S. residency options are narrowing (with the U.K., Ireland, Montenegro and Spain partially or fully ending their programs), opportunities remain. For those seeking residency without running a business, options like bank deposits or government bonds exist, typically requiring a $200,000 minimum investment. Stock market investments also offer a potentially lucrative alternative over a five-year period.
Tightening Regulatory Environments
The EU is continuously pressuring its members to make the golden visa regulations more stringent. For example, as of this writing, Spain is set to ban golden visas through property investment. However, Caribbean countries and countries like the U.S, UAE and Hungary still offer attractive ways to invest and build a life abroad.
For investors seeking golden visas primarily for a second passport without needing to relocate, political stability may be less significant. Countries with strong passport rankings and some political instability can still be viable, especially when financial requirements are lowered to attract participants.
Grandfather clauses, as seen in Spain and Portugal, protect existing golden visa holders under the original terms even if regulations change. This ensures that initial investments or submitted applications remain valid. In tightening regulatory environments, acting swiftly can help investors secure benefits before further restrictions are imposed.
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