A golden visa is a source of investment visa that enables anyone to obtain residency by investing in a country. In 2010, the first golden visa program was launched in Latvia, followed by Portugal, to attract investment funds to help the real estate market revive.
Following the success of Portugal’s Residency by Investment Program, several European countries have adopted the same strategy to attract foreign investment in return for giving investors residency. In addition, some countries have also chosen to grant golden visas to revitalize real estate markets after the rise in overall estate taxes and the collapse of the market.
Why Golden Residency Is Useful
Today’s achievement of a Golden Residence is a vital need rather than just privilege. Due to turbulent situations and conditions, establishing an enterprise, traveling to a country, and moving freely within the European Union, or moving into other countries and getting safe and stable investments have become complex.
Investors and business people are genuinely suffering to set up businesses overseas.
Besides that, the changing economic situation of countries around the world has led governments to implement varied programs and make significant changes to their investment laws and legislation to make them more flexible, competitive, and capable of attracting investors around the world.
In many countries, residency visas are offered expressly in exchange for a person who invests in local companies or property of a nation. Following the vote of the UK to leave the European Union in June, the world’s wealthiest began looking for work and freedom of movement in other countries.
Benefits of the Golden Visa
The golden visa provides extra benefits in addition to citizenship. When you reside in an EU country permanently, you can travel visa-free to countries. In addition, those who acquire a golden visa from a European country may be subject to tax benefits, market access, and social services.
Golden visas are provided in Cyprus, Portugal, Greece, Spain, Bulgaria, Belgium, and Italy in Europe.
For example, due to the high standard of living and world-class healthcare system, Spain is one of the most desirable places to live in the world. Spain offers a golden visa in exchange for a US $500,000 investment. In Spain, a residence visa is issued within three months and is renewed every two years. After five years, the holder of the golden residency applies to permanent residence, and after ten years, the holder of the golden residence applies for citizenship.
A person can also obtain visa residency in Greece by investing in real property, which positively impacts the national economy. The investor does not have to stay in the country, and in return for owning real estate worth $250 thousand, he and his family members under 21 years old and his parents get a five-year, renewable residency.
This residence permit allows him to travel and move across Europe and the Schengen area freely and benefit from a distinguished and low-cost education system compared to the rest of Europe.
Middle Eastern Golden Residency
The UAE is the only country in the Middle East that allows foreigners to obtain golden visas.
Foreign residents in the UAE often get visas for specific periods that must be renewed regularly. However, for notable businessmen and investors with doctorate degrees and all doctors and engineers in computer engineering, electronics, programming, electricity, and biotechnology, the UAE government has begun granting residence permits for a more extended period.
Holders of specialized degrees in artificial intelligence, big data, epidemiology, and viruses will also qualify for golden residency.
This year, the UAE introduced a five- or ten-year long-term residency visa system automatically renewed if the same conditions are met. This new system allows UAE residents, foreign expatriates, and their families who wish to come to the UAE to work, live and study to do so without the need for an Emirati partner and with a 100 percent ownership percentage within the country’s emirates.
Investors wishing to obtain a 10-year residence visa must meet the following conditions:
- To have a deposit of at least 10 million dirhams (about $ 2.7 million) in a national investment fund.
- To acquire an existing or new company as a partner with a financial stake of at least 10 million dirhams.
- To own several investments in the country with a total value of not less than 10 million dirhams.
The following terms are included in the investor visa conditions:
- The investor’s capital must be their own and not a loan, and proof of ownership must be provided.
- Maintain the investment for at least three years from the issuance of the residence permit.
- The investor’s financial receivables should not be less than 10 million dirhams and should not be burdened by claims or debts that impact his financial situation.
The five-year visa is awarded to real estate investors who meet the following criteria:
- The investment must be in one or more properties worth nearly 5 million dirhams (about U.S.$ 1.35 million) in total real estate value.
- The property being invested in must be wholly owned by the investor and not a loan, and proof of ownership should be provided.
- To keep the investment for at least three years after the residence permit is issued.
- His financial receivables should not include civil claims or judgments that decrease the investor’s financial position.
UAE Benefits of This Visa
Following a sharp oil price drop, the UAE has recently begun to focus on attracting foreign investment in various methods, because of the reduced funds needed for the state’s assets and infrastructure.
The UAE is looking well after economic interests. It is one of the countries that choose innovative and strong solutions, such as these facilities and privileges for residing on its lands, since its economy is highly dependent on foreigners, whose residence is usually contingent on their work visas.
The UAE’s golden residence visa aims to attract independent entrepreneurs and business innovators to boost the local economy, support diversity and economic growth, and attract exceptional talent in becoming long-term partners in the country’s development. In addition, this step will enhance the UAE’s position as a global incubator for innovation and talent.
Foreigners are allowed to stay in the UAE under renewable work visas that must be renewed every three years. However, in the longer term, these recent changes may encourage expatriates to invest in the country.
Increasing productivity, developing the educational dimension, and improving the quality level in administrative and technical work are among the qualitative additions that the UAE can benefit from considering this trend.
This residency is being provided in light of the UAE’s attempts to improve artificial intelligence, the work environment, investment climates, and competitiveness to make the UAE’s economic environment more attractive to capital and quality foreign investments.