Portugal Golden Visa Closing: Here are the alternatives

Written by: Kathryn Funk, Content Writer at Lincoln Global Partners

European immigration avenues such as the golden visa program in some Mediterranean countries have been treasures of the migratory industry. Such programs have been strategically useful for foreign investors eager to have visa-free access to the Schengen Area, move to Europe or become European citizens. Golden visas have opened doors to various societal realms like business, healthcare and education.

Despite status and wealth, travel restrictions and burdensome visa processes can pose major barriers for businesspeople from countries like China, Vietnam, Nigeria and Egypt. European Golden Visa programs have become an appealing relief for those who are able to invest in exchange for visa-free entry to the Schengen Area.

Portugal's Golden Visa program especially has attracted not only citizens from nations with weaker passports but also thousands of concerned U.S. citizens looking for a more peaceful, affordable life with the added security provided by dual citizenship. As a result, the U.S. has become one of the leading sources of investment in Portugal in recent years.

The Portugal Golden Visa program has been the shining star of the European immigration market. Thanks to the trends set by the golden visa program, Portugal has become a thriving destination for expats, digital nomads and retirees. The program is more than a billion-dollar industry, with an unprecedented number of applicants in 2022.

Alas, it appears the glorious era of the Portuguese Golden Visa is closing.

The government has kept the window open for investors until the “More Housing” bill goes into effect. On July 19th we will find out what will happen next. It is expected that the real estate investment and bank deposit options will be axed. However, the program itself may remain open. If this happens investors will be left with the choice of investing €500,000 into an approved investor fund, contributing to a cultural and arts or scientific approved project, or investing in a business that creates at least 10 jobs.

So, in 2023, what are the alternatives? Read on to see what options remain in Europe for investors keen on obtaining EU citizenship by investment.

Malta Citizenship by Investment

Malta's Citizenship by naturalization for exceptional services program will be the lasts of its kind in Europe by the end of 2023. The program allows investors who gain residency in Malta to apply for citizenship after one or three years, depending on their investment amount. While investors must fulfill a pre-residency requirement before applying for citizenship, they are not required to physically reside in Malta. It is possible to obtain a Maltese passport within 18 months after beginning the process.

Realistically, only ultra-high net worth individuals can consider this program due to its steep costs. To participate, a donation of at least €700,000 is required, and the standard processing time is 36 months. For those who donate €800,000, citizenship may be applied for after 12 months of residency. Additionally, investors must donate a minimum of €10,000 to an approved non-profit or charity in Malta. Plus, factor in service fees, government processing fees, and due diligence fees.

Those with adequate funds can obtain a Tier 1 passport from one of the world's most tax-friendly countries. Allowing them to live, work, study and do business throughout the European Union's 27 member states. Malta is an English-speaking country with breathtaking beaches, top-notch education and outstanding healthcare — an undeniably perfect destination for European investment.

Malta Permanent Residency Program

The Malta Permanent Residency Program is a more cost-effective option for investors seeking long-term residency in Europe. Although citizenship is only possible if the applicant moves to Malta and resides there six months a year for seven years. Despite this requirement, the program provides a permanent solution, allowing investors to acquire permanent residency in a safe and tax-friendly European island nation, with visa-free travel for life.

Investors have the choice of:

1. Purchasing a property for a minimum value of €300,000 in the South of Malta/Gozo or €350,000 in the rest of Malta and pay a government fee of €28,000; or,
2. Renting a property for at least €10,000 in the South of Malta/Gozo, or €12,000 in all other areas and pay a government fee of €58,000. Additional costs are tacked on in the form of administrative fees, dependent costs and a required donation of €2,000 to a registered local organization. While the list of financial requirements may appear daunting at first glance, this residency program is actually quite affordable compared to others worldwide. Often investors who were initially drawn to Caribbean citizenship by investment programs for the reason of visa-free travel opt for Malta instead when their primary objective is visa-free access to the Schengen Area.
   
   

Greece Golden Visa

The Greek Golden Visa program was already Portugal’s direct competitor. While Greece does not impose any minimum stay requirements on investors, acquiring citizenship is only possible for those who reside in the country six months of the year for seven years. Portugal’s key advantage is its flexible pathway to citizenship.

The real estate market in Greece is just as appealing as Portugal, with the added advantage of having no restrictions on the type of property applicants can invest in. And investment minimums are lower.

After July 31st, the Greek government will double the minimum investment cost from €250,000 to €500,000 in the more popular areas of: North, South and Central Athens, Mykonos, Santorini, and the Municipalities of Thessaloniki and Vari. Fortunately, this change only affects 10% of the country, leaving some amazing investment opportunities at the €250,000 mark in the remaining 90% of areas. Especially considering the Greek economy is truly on the up and up, and many areas are revamping such as Crete, Piraeus Halkidiki and Paros.

Greece has made a remarkable comeback since the economic crash in 2009. The nation is revitalizing through technology, innovative green development and restoration, yet maintaining that ancient world allure forever attracting visitors and investors. The real estate market is rapidly growing, and the future of Greece looks bright and innovative.

Options Beyond Europe

Undoubtedly, Greece and Malta trump the European investment market in the absence of Portugal. Even if the Portugal Golden Visa hangs on, scrapping the real estate investment option removes the programs very essence. Latvia and Spain also offer golden visas, but they’ve never been on par with Portugal’s program.

Otherwise, those looking to enhance their global mobility, secure additional citizenship and potentially reduce taxes and protect assets can consider Caribbean citizenship by investment programs. Programs in Antigua and Barbuda, St. Lucia, Grenada, Dominica and St. Kitts all grant visa-free access to the Schengen zone at reasonable investment costs.

Contact Lincoln Global Partners

Lincoln Global Partners can guide you through available citizenship by investment and residency by investment programs throughout Europe and the Caribbean. We can help you find the right investment option for you considering your unique situation. Contact us for a free 30-minute consultation to get the ball rolling.