The sun may be setting on Spain’s golden visa programme, but that doesn’t mean that all is lost for Britons who want residency or citizenship somewhere abroad. Although Spain’s was the most popular, there are still more than 100 similar programmes around the world.
These allow individuals and their families to gain either residency or citizenship of a country through buying a property there or investing in its economy.
Britons are seeing their appeal and are applying in record numbers.
So why might you want one and which are the best options available? Wealth & Personal Finance investigates.
For the price of an average UK home you can purchase this property in Crete
… and this one in Antigua for £290,000 – the price of a typical property in the UK, according to the Office for National Statistics
This home in Portugal would also fall under the typical price
… and so would this luxury home in Dubai
Why you might want one
The greatest attraction is the freedom they afford holders. Once you have a golden visa you can travel to that country as often as you like and spend as much time there as you choose. That means no more applying for visas or being bound by restrictions to the number of days you can stay there.
Some offer residency, which means you can spend as much time there as you like. But the more generous offer you a pathway to citizenship, which comes with a passport. Armand Arton at global citizenship firm Arton Capital, says citizens of countries such as China and Russia have always seen the attraction of having a second residency or citizenship should they wish or need to leave or move assets.
‘However, growing numbers of British and US citizens are seeing the value – as well as wanting the lifestyle options that having access to another country affords,’ he says.
Growing numbers of Britons also use golden visas to reduce their tax bills by becoming resident in countries that have lower rates than those levied in the UK.
Plans to remove ‘non-domiciled’ or non-dom status in the UK have escalated this trend.
Favourite for brits
For years, the Spanish golden visa has been by far the most popular among Britons.
It allows holders to come and go as they please without being bound by post-Brexit rules that state non-EU nationals cannot spend more than a total of 90 days in the EU within a period of 180 days without a visa.
The golden visa permits unlimited residency to an investor (as well as their spouse and dependent children) — as long as they spend at least 500,000 euros on Spanish property. The purchase cannot be made with a mortgage. The visa can also be obtained with an initial investment of at least 2 million euros in bonds issued by the Spanish government or 1 million euros in shares in Spanish companies or funds, or put in a Spanish bank account.
The golden visa allows holders to remain tax resident elsewhere and therefore also exempt from Spain’s wealth taxes, which are levied on Spanish tax residents’ worldwide assets. The scheme is closing this April, and there are long waiting lists to apply. However, Patricia Casaburi, chief executive of Global Citizen Solutions, says: ‘If you find a turnkey property to buy it may still be possible to get in before the deadline.’ Once you have a Spanish golden visa, you need to apply to renew it every five years. It is not yet clear whether renewals will be permitted once the scheme has closed to new applicants.
Popular Portugal
The Portuguese golden visa scheme is the second most popular option as it gives you the option to apply for citizenship as well as residency. Once you have citizenship, you receive a passport and therefore can travel freely throughout the European Union.
Troy Hanley, managing director at residence and citizenship by investment experts Henley & Partners UK, says: ‘The Portuguese scheme offers a direct pathway to citizenship without having to live there.
‘It is the only one in the EU to offer that – all the others require you to live in the country for at least seven years to qualify for a passport. You could even remain in the UK and visit Portugal once every couple of years.’ The main route to a golden visa eligibility is spending at least 500,000 euros on qualifying investments. You may make money on these although there is no guarantee. You will need to do your due diligence.
Patricia Casaburi adds that an individual can apply for their spouse and dependents to receive a golden visa under the same application, and need only fulfil the investment criteria once. ‘You can add your parents and in-laws so long as they are over the age of 66. If they are younger you will have to prove they are dependent,’ she says. ‘And there is no age cap for dependent children so long as they are not married and are still in education and so financially reliant on you.’
Buying on a budget
Greece has one of the lowest barriers to eligibility within the EU. Investors can get a five-year residence permit by investing 250,000 euros in existing real estate. It allows you to live in Greece and travel across the EU without a visa.
Outside of the EU
Antigua is proving increasingly popular among Britons, says Paul Williams, chief executive of consultancy La Vida Golden Visas. Golden visa holders are afforded citizenship by investing 300,000 US dollars in real estate or making a 230,000 US dollar donation to the government.
‘Some people find the tax benefits attractive as Antigua does not tax overseas income,’ he says. ‘Plus you get citizenship as well as residency and can move freely in other islands such as St Kitts and St Lucia.’ The UAE also has a golden visa scheme, which grants residency to those who invest in eligible properties worth at least AED 2 million (£446,000).
Making an application
Each scheme has different rules and application processes. You may wish to seek a specialist adviser to help you through the process.
Be warned that closure of the Spanish scheme shows that golden visa programmes can be changed, withdrawn or created at any time.
Paul Williams adds: ‘So far we have not seen existing holders have their visas removed when schemes close. ‘However, it remains to be seen what happens with renewal applications in Spain after the golden visa closes to new applicants.’
He adds that, unlike residency, once citizenship has been granted it can’t be taken away.
- Do you have a golden visa? Email rachel.rickard@mailonsunday.co.uk
