Navigating the Changing Landscape of Golden Visas and Alternative Options: What’s Next?

The future of investment migration has been evolving rapidly in recent years. Golden visa routes can be a valuable source of foreign investment and stimulate economic growth in the host country. Following the challenges brought by the COVID-19 pandemic and increasingly worrying geopolitical situation, the demand for golden visas has been growing exponentially.  

The popularity of golden visas is attributed to several factors, such as a relatively easy and straightforward way to obtain residency with clear benefits to investors as they are often seen as a safe and secure investment option in return for residency of citizenship, particularly in countries with stable economies and political systems.  

Changes Amidst the Golden Visa Landscape

However, in line with the growing trends of deglobalisation, we have seen numerous barriers being erected across the globe with many golden visa options closing and investment migration becoming politically unfavourable despite its economic benefits. These routes have been criticised for their potential to undermine national security and sovereignty. Critics argue that golden visas can be exploited by individuals with criminal backgrounds or ties to terrorist organisations and can be used to launder money and evade taxes. The UK and, more recently, Portugal and Ireland, closed their investment programmes to new applicants. 

In other countries, we have seen the implementation of tighter regulations, a call for transparency and the introduction of a more rigorous due diligence process. This helped to improve the reputation of the golden visa programmes and reduce the risk of money laundering and other illegal activities ensuring that only legitimate investors are granted residency and citizenship. One of the concerns, for example, with the Caribbean golden passport programmes has always been the due diligence process and the lack of transparency which led to all Caribbean countries, taking steps to improve their procedures such as introducing innovative digital application platforms and most recently the introduction of the requirement for an interview. 

Furthermore, in January 2019, the European Commission published a report criticising golden visa programmes to circumvent EU migration rules. In addition, the Commission has been driving several developments in the golden visa programmes in Europe to improve their security and transparency. Some of the proposals have been around the standardisation of the programmes and gradual closure of the golden visa options. Although much anticipated, the Commission is running out of time to propose any new legislation before the election next year.  

Evolution of Investment Migration Trends

Public opinion has also been a great factor influencing the investment migration trends raising concerns about the impact of foreign investment on the local economy and society. This has led to public pressure to restrict and limit this type of programme. Consequently, we have seen a rising focus on sustainability and social responsibility. Many countries have implemented programmes that require investment in sustainable projects or contribute to social causes in exchange for residency. This has helped to improve the reputation of the programmes and ensure that they have a positive impact on the local economy and society. The Portuguese government introduced changes to their golden visa in 2021, aiming to reduce the impact of foreign investment on the local housing market. However, this programme is now due to close as early as the end of July 2023 with the sustainable element of cultural investment being reinvented as an entrepreneur visa. 

As a result, to balance the need for foreign investment with the need for security and transparency, investment migration pathways are rapidly evolving, and foreign governments are crafting new programmes as well as promoting and reinventing existing ones in a more favourable way to attract foreign investors that can benefit their local economies and increase their countries’ appeal in the global environment.  

Hong Kong is looking at reintroducing its investor visa proposition with Singapore’ Global investor programme and Malaysia’s Premium visa being highly sought after. The UAE golden visa programme has become very popular with the country being a strategic gateway for Middle Eastern, African and other nationals. There is a growing demand for the introduction of similar programmes in Latin America and Africa. 

Alternative Options

Outside of passive investment migration, we have seen a reappraisal of the entrepreneurial and start-up visas, with the UK reintroducing their innovator founder visa and Canada re-opening their Quebec investor programme in addition to their successful start-up programme. Such policies attract less negative sentiment crafted around active investment and highly skilled individuals. 

Furthermore, many countries have jumped on the train introducing various versions of the Global nomad visas allowing individuals to work remotely whilst travelling and living in a different country. Based on the Migration Policy report, this option is the most popular trend in the immigration space for years. However, there has been significant criticism of these programmes around poorly designed legislation and implementation and there is work to be done in this space. 

One more example includes the options available to persons of independent means designed for individuals with financial means who can support themselves without the need for employment or business activities in the host country and can provide a secure path towards residency and citizenship. Popular destination countries, such as Portugal, Spain, Malta and many others offer such an option which proves to be quite a popular alternative. 

These alternatives offer individuals a range of different choices when it comes to obtaining residency in a foreign country. However, when choosing one, there are important factors that individuals no doubt will have to consider when choosing the most optimal programme, such as tax implications, business opportunities, political stability and quality of life.  

Looking Ahead

As a result, when looking into the near future, it is important for both the individuals and host countries to be able to adapt to the impending changes. It is important for policymakers to carefully consider the potential risks as well as benefits of the investment programmes when balancing the need for foreign investment with the need for security while designing new investment migration pathways.  

For individuals, it is important to be proactive and explore alternative options for residency visas as countries continue to tighten their investment migration programmes. While the process may require more effort, it can ultimately lead to a more secure and sustainable path towards residency. By taking the time to consider all available options, individuals can ensure that they are making the best decision for their future and their families.  

Need to know more?

For questions related to exploring alternative immigration options, please reach out to Director Olga Nechita at [email protected].

This blog was published on 26 June 2023, and due to the circumstances, there are frequent changes. To keep up to date with all the latest updates on global immigration, please visit our dedicated COVID-19 site, subscribe to our alerts and follow us on LinkedIn, Twitter, Facebook and Instagram.