London, Tuesday, 06 June 2023
Many nations throughout the world participate in the Golden Visa programme, often known as a golden passport or citizenship by investment programme. It gives people the chance to become citizens or residents in return for making a sizable financial contribution to the nation's economy.
In the 1980s, the Caribbean developed the idea of a Golden Visa programme as a means of luring international investment and fostering economic development. Since then, several nations around the world have embraced it, including European countries like Portugal, Spain, Greece, Malta, and Cyprus.
The particular qualifications and investment opportunities under a Golden Visa programme can differ from one nation to another. Typically, the investment choices include buying real estate, investing in businesses, buying government bonds, creating jobs, or making gifts to certain development funds. Depending on the nation and investment choice selected, the minimum investment amounts can vary, ranging from a few hundred thousand dollars to several million.
Investors and their families can get residency or citizenship rights in the target nation by taking part in a Golden Visa programme. Usually, this includes perks like visa-free travel inside the Schengen Zone (for programmes in Europe), accessibility to healthcare and education, and the chance to reside, work, or study in the nation.
It's crucial to remember that while though the Golden Visa programme provides an expedited route to residency or citizenship, it does not ensure instant citizenship. Participants typically need to meet a number of restrictions, such as keeping the investment in place for a predetermined amount of time, undergoing background checks, and fulfilling any necessary language or residency requirements.
People who are looking for better possibilities, global mobility, and a higher standard of living have been drawn to the Golden Visa programme. It has, however, come under fire for the dangers of money laundering, tax evasion, and the potential for inflated real estate markets. To reduce these dangers, each nation enacts its own laws and due diligence procedures.
To obtain precise and current information about the unique requirements and circumstances for each country's programme, it is advisable to speak with immigration lawyers or other specialists with experience in Golden Visa schemes.
The Portuguese Case
Since its launch in 2012, the Golden Visa programme has significantly boosted the economy of Portugal. In particular, Portugal has profited in the following ways from the programme:
1. Foreign Direct Investment (FDI): Portugal has received a sizable amount of FDI thanks to the Golden Visa programme. Investors must commit a sizeable sum of money to the programme, typically by purchasing real estate or creating jobs. The Portuguese economy has received a large capital infusion from these investments, which has sparked expansion and produced new business prospects.
2. Real Estate Market Boost: The acquisition of real estate is one of the main investment opportunities available under the Portuguese Golden Visa programme. In particular, the real estate market in significant cities like Lisbon and Porto has been aided by this. The rise in property prices and the stimulation of construction operations brought about by the increased demand from foreign investors have benefited the construction industry and adjacent businesses.
3. The Golden Visa programme promotes foreign investors to create jobs in Portugal. Participants promote the creation of jobs and economic growth by making investments in enterprises or lending a hand to entrepreneurs. This benefits the local labour, lowers unemployment rates, and strengthens the economy as a whole.
4. Tax money: The Portuguese government receives tax revenue from the Golden Visa programme. Investors who become residents through the programme are then subject to all income, property, and consumption taxes in Portugal. These tax payments aid in the development of infrastructure and public services.
5. Tourism and hospitality sector: The expansion of Portugal's tourism and hospitality sector has also been facilitated by an increase in foreign residents and investors. Many Golden Visa holders opt to travel or live in the nation either temporarily or permanently, which raises tourism-related spending, hotel reservations, and dining out. The tourist and hospitality industries have benefited in a number of ways as a result.
6. Ancillary Services: The Golden Visa programme has increased demand for ancillary services like property management, relocation assistance, and legal and financial advice services. As a result of the programme, several service sectors have expanded and created new job possibilities.
Overall, the Portuguese economy has benefited greatly from the Golden Visa programme. It has drawn foreign investment, boosted a number of companies, produced employment opportunities, raised tax income, and helped the real estate and tourism industries flourish.
(Research and edit by: The Decision Maker – International Relations and Finance editors)