On Tuesday, Commerce Secretary Howard Lutnick announced the replacement of the EB-5 visa—intended to attract foreign investment to economically depressed areas—with a “gold card” visa. Legislators have voiced concerns that the EB-5 visa, which can lead to citizenship, threatens the country’s security and provides opportunities for fraud.
While Mr. Trump has suggested that Russian oligarchs may be eligible for a gold card, officials have not confirmed this.
The program may take cues from similar “golden visas” that have been in place for some time in other countries. Dominic Volek, worldwide head of sales for advising firm Henley and Partners, which assists clients in obtaining residence or citizenship through investments, stated that European visas have been particularly attractive because residency is generally not required.
However, due to local public resentment and concerns about their use for criminal purposes, several European countries have recently started to modify their stance on these forms of visas.
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How do European golden visas work?
Spain, Portugal, Greece, Malta, and Ireland are among the nations that have extended resident visas to affluent persons in exchange for investments ranging from 250,000 to 500,000 euros. Investments can take several forms, including purchasing physical property, using venture capital, or monetary contributions to charities or other nonprofits recognized by the government.
Golden visas “have become a hedging tool against who knows what tomorrow brings,” Mr. Volek added in response to the increased global uncertainties.
An additional perk is that you can travel freely across many EU countries after you become a resident of one of those countries. After living in a European country for a specific amount of time, inhabitants of many countries—including Italy, Greece, and Portugal—can seek citizenship through their golden visa schemes.
For what reasons have certain nations begun to provide “golden visas”?
Some countries sought other funding sources because of the 2012 European financial crisis. Countries like Greece, Portugal, Ireland, and Spain especially needed financial assistance, and the visas presented a chance for these countries to entice investors and stimulate their economies. Six Eurozone member states initially extended the visas, and others soon followed.
We greatly appreciate the visas. Since 2013, Spain has granted roughly 15,000 visas to those who have spent above €500,000 (about $525,000) in real estate. Portugal collected €5.8 billion until it tightened the regulations last year. Between 2021 and 2023, the visas brought in €4.3 billion for Greece.
Kristin Surak, an associate professor of political sociology at the London School of Economics, found that by 2022, the programs had earned over €21.4 billion for EU member states and had helped over 130,000 individuals become citizens or permanent residents of the EU.
Are the drawbacks any?
There has been animosity among locals in countries that have implemented golden visa programs even though these programs have brought investment and improved growth. One cause is that many foreign investors have been selling or turning their houses into Airbnb or short-term rentals, leading to a spike in rental prices and driving out many locals. The cost of purchasing a home has also skyrocketed.
What is causing nations to retreat?
A few European nations are attempting to reverse their policies. In 2023, the program in Ireland came to a stop. In April, Spain will no longer grant new golden visas. Portugal and Greece have also adjusted their schedules.
These modifications prompted complaints from the local community. However, they also mirror the increasing concern around using golden visas. The European Commission warned about the program’s potential misuse in 2019 regarding corruption, tax evasion, and money laundering. European Union leaders pushed for the initiatives’ termination in the wake of Russia’s 2022 invasion of Ukraine.
Is the golden visa still an option?
Since the 2024 election, American interest in them has dramatically increased. Mr. Volek reported a 400 percent rise in online inquiries from Americans in the 48 hours following Mr. Trump’s victory and a “massive spike” in the number of applications received.
Several other countries, such as Saudi Arabia, Oman, Dubai, and Abu Dhabi, are now contemplating introducing golden visas to attract the rich. He added that Trump isn’t the only one who sees this as a highly inventive instrument; more governments are doing the same.