5/7/2025
The abolition of the Golden Visa in Spain may lead to a surge in demand in Greece!
These investment attraction programs in the EU emerged in the early 2000s and over the years became extremely popular, especially after the 2008 financial crisis. In 2010, only four EU member states had Golden Visa programs, but by 2017, nearly half of them had adopted similar schemes to boost economic development. However, in recent years, more and more countries have chosen to “close their doors” to residence-through-investment options, as some—like Spain—believe they contribute to the housing crisis.
The government of Pedro Sánchez has announced it will terminate the Golden Visa program within the year. Analysts suggest this may redirect those seeking EU residence to the remaining six countries still offering similar programs—namely, Greece, Portugal, Italy, Hungary, Latvia, and Cyprus. However, Cyprus has not yet joined the Schengen Area, meaning third-country investors cannot freely travel within the rest of the EU. This, according to market professionals, could increase demand in Portugal and Greece, with all the implications this might have on housing costs.
Over €21.4 Billion in Revenue for Member States Over Eight Years
According to a report by the European Parliamentary Research Service (EPRS), between 2011 and 2019, over 132,000 third-country nationals obtained residency or citizenship in the European Union through “Golden Passport” and “Golden Visa” programs, generating investments of at least €21.4 billion. From the beginning, the two schemes—especially the “Golden Passport” program—have drawn scrutiny from the European Parliament and the European Commission. The Committee on Civil Liberties, Justice and Home Affairs (LIBE), and later the Plenary, called for the abolition of citizenship-by-investment schemes and the regulation of residence-by-investment ones. However, on February 24, 2022—shortly after the LIBE report was approved—Russia invaded Ukraine.
As the European Parliament report states, “Until that point, although Russian nationals did not represent a significant portion of the global citizenship-by-investment market, in Cyprus (which had already ended its Golden Passport program two years earlier) and Malta, they accounted for more than 50% and 40%, respectively, of those who obtained citizenship through such schemes.”
Nonetheless, according to reports by the European Parliament and the Commission, “a residence permit granted under an investor residence program established by one Member State affects other Member States as well.” In this context, the European Parliament proposed that Member States implementing Golden Visa programs should contribute indefinitely to the EU budget via a special levy, based on a significant percentage of the investment made.
Brussels: 'We Are Closely Monitoring Developments'
Although residence permit programs have not stirred as much controversy in Brussels as Golden Passport schemes, the Commission is still monitoring developments closely. A high-ranking Brussels official told that “the Commission has repeatedly expressed serious concerns and taken action to address the risks of investor residence permit schemes in the EU. In March 2022, following Russia’s invasion of Ukraine, we issued a recommendation: immediate measures for citizenship-by-investment and residence-by-investment programs.
The Anti-Money Laundering Regulation and Directive, approved in 2024 following a Commission proposal, require Member States operating such programs to monitor associated risks and adopt mitigating measures. We also proposed the recast of the Long-Term Residents Directive, introducing stricter rules to prevent misuse of the status by third-country investors. The Commission continues to monitor developments in Member States and takes action as appropriate and within its competences.”