A golden visa can be defined as a citizenship or residency program that allows individuals and their families from different countries to live, work and study in another country for a substantial investment or donation to the latter's economy. The golden visa allows applicants to get a residency permit or even a citizenship depending on the country.
Most countries offer the golden visa to invite foreign capital into their economy through non-refundable donations to government-approved projects, investments in real estate or government projects. Over the years, the golden visa has dramatically boosted a country's economy and real estate, creating enormous opportunities for investors, business entrepreneurs, and those seeking to secure their wealth abroad.
Below are the countries that have seen the massive benefits of the golden visa schemes since its launch,
UAE
The UAE golden visa is a long-term residence visa which enables foreigners to work, live and study in the UAE while enjoying benefits. The visa is renewable and valid for 10 years. The golden visa accords holders with these benefits:
- an entry visa for six months with multiple entries to proceed with residence issuance
- privilege of not needing a sponsor
- the ability to stay outside the UAE for more than the usual period of six months in order to keep their residence visa valid
- the ability to sponsor their family members, including spouses and children
- the ability to sponsor domestic helpers
- the permit for family members to stay in the UAE until the end of their permit duration, if the primary holder of the Golden visa passes away
Wealthy individuals looking to expand their investments in the UAE can either invest in an investment fund for AED 2 million and receive a golden visa valid for 10 years without a sponsor. Applicants can also invest in real estate valued at AED 750,000 million and receive a 2-year Investor Visa.
Dubai's outstanding real estate projects have attracted HNWIs. As of 2022, Dubai has more than 67,900 HNWIs living in the city, an increase from 54,000 in June of the previous year.
According to a report, the top 5 property projects that lure the wealthy set are Jumeirah First, Al Barsha, Jumeirah, Arabian Ranches, and Al Thanyah. The continuous influx of millionaires into the country is projected to help boost the economy to more USD 1 trillion by 2026.
Greece
The Greece residency program was launched in 2013. Since then, over 10,000 investors have availed of this program. The Greek RBI program has been one of the most popular schemes, in Europe and the rest of the world. The minimum investment of EUR 250,000 makes this one of the most cost-effective programs. Investors can receive their long-term residence permit, which is valid for five years and can be renewed, provided that they keep their investment.
Wealthy individuals regard Greece as an ideal location for foreign investments. The country offers a wide range of real estate properties that they can choose from - from flats to villas to beach houses, all providing the promise of luxuriating amidst spectacular surroundings.
The demand is evident, with the Greek Ministry of Migration and Asylum announcing that 2,767 applicants received their golden visas in 2022, a significant rise from 1,525 issued in 2021, according to a report.
The interest from foreign buyers has only increased dramatically in recent years. Prices for houses in Greek urban areas have risen 11.32% in Q3 2022, 10.25% in Q2 2022 and 10.35% in Q1 2022. In the first three quarters of 2022, the total value of real estate properties purchased by foreigners increased by 60.2% y-o-y to €1.28 billion. These purchases account for 80% to 85% of all real estate purchases in Greece. By the end of 2022, the investments made by foreign buyers were expected to reach EUR 1.7 billion.
Portugal
The Portuguese golden visa is a residency-by-investment (RBI) programme designed to attract foreign investors to bring in capital to boost the economy. Applicants are granted temporary residency visa that allows them to work, study and live in the country as well as enjoy visa-free travel to the EU Schengen states. The visa is also a gateway to Portuguese citizenship which a residency holder can apply for after five years.
The golden visa has several investment options: Starting at EUR 280,000, a EUR 500,000 investment in designated interior areas or EUR 350,000 in a government rehabilitation project.
The visa program was launched in 2012 and has been quite popular among the wealthy looking to expand their investments abroad while enjoying the idyllic life this charming country offers. Portugal has become a popular choice mainly due to the safety and security it accords residents. Based on the 2022 Global Peace Index, it ranks 6th as the safest country in the world.
It has been ten years since the programme was launched, and as of 2022 a total of 11,535 applications have been granted. The total investments from the golden visa have reached more than EUR 6 billion. In 2022 alone, investment in the golden visa reached EUR 654 million, up from EUR 461 million in 2021.
St Kitts & Nevis
St Kitts & Nevis have consistently enjoyed the top spot among the world's CBI programmes. This twin-island nation pioneered the global investment immigration industry when it launched the world's first CBI programme in 1984. It has one of the lowest investment schemes among CBI programmes, with a donation of USD 125,000 to the government's Sustainable Growth Fund (SGF) or a purchase of a real estate property of USD 200,000.
Following tourism, the CBI programme is the second largest contributor to the country's GDP. According to the report from the International Monetary Fund (IMF) released in January 2023, growth is projected at 4.5 in 2023, supported by a strong recovery in tourism and other service sectors. The IMF report also found that the CBI programme has significantly impacted the country's economic growth.
In his first Budget Address, Prime Minister Dr. Terrance Drew, highlighted that "the CBI Programme is also designed to generate significant revenue to create a diverse economy that will promote entrepreneurship, profitable job creation and increase homeownership." He adds that his administration will "use the CBI revenues to fuel our plans to implement a diversified economy."
The Prime Minister also emphasised the importance of due diligence to ensure the country's CBI program maintains its good global reputation. He says, "Our citizenship is precious; therefore, the evolved CBI Programme will invite bold and creative top-notch investors to our shores who will develop innovative industries in St Kitts and Nevis, the construction of 18 real estate developments pursuant to our government's priority infrastructure list, and in all things, bring substantial benefit to the people of Saint Christopher and Nevis. This evolution is perfect for our investors to explore real estate development opportunities through their CBI Programme."
This year, the government aims to develop a Sovereign Wealth Fund through its CBI programme, the first of its kind in the world. The fund will improve the country's healthcare system, and social services, develop public infrastructure, including energy and water security for all the Kittitian and Nevisian population, and digital transformation.
Grenada
The Grenada CBI programme was first launched in 2013 and has since become one of the most favoured programmes among Caribbean nations and the world. The minimum investment outlay is a $150,000 contribution to the National Transformation Fund (NTF) or a USD 220,000 purchase of a pre-approved real estate property that must be retained for at least five years.
In 2022 the CBI programme shattered records, according to the IMI Daily. It has become the third Caribbean nation, alongside St Kitts & Nevis and Dominica, to receive more than a thousand applicants annually. There were 1,251 investor applications in 2022, a rise of 121% from the previous year. Three-quarters of those applicants (920) were lodged in the second half of 2022.
The rise of applications has resulted in a historically unprecedented backlog of unprocessed applications reaching 1,181 files by the end of 2022. This backlog is estimated to be worth US$312 million. Despite the backlog, the CIU approved a record of 453 applications, an increase of 13% on the year. This meant that 1,486 citizenships were approved, another record number. Revenues from the CBI programme reached an all-time high of US$ 133 million, up by 27% from 2021.
According to the International Monetary Fund (IMF) report, "The Citizenship-by-Investment (CBI) Program inflows can be used to ramp up resilience building and developments in other sectors, such as agri-business and ICT, to promote growth and job creation."
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