The Changing Face Of Europe’s Golden Visas

Since our foundation, we’ve seen investor immigration develop into a multi-billion-dollar industry, with new programmes launched throughout the world. These programmes have become a pathway to facilitate access to new markets, enable seamless international travel, and hedge against uncertainty.

For wealthy migrants, these schemes can also provide a ‘Plan B’ residence and a gateway to a better life for their families. This is particularly desirable for those whose countries are experiencing political upheaval. Perhaps surprisingly, these applications don’t just come from developing countries. Some of the biggest leaps we at Arton Capital have seen in applications in recent years came from American citizens in the wake of divisive elections. Citizens of the host nation also reap outsized rewards, as enormous levels of investment are channelled into local economies bringing jobs and social benefits to where they’re most needed.

A Gateway To Enhanced Mobility

Of all the world’s investor immigration programmes, the most contested and in-demand are those found in Europe, particularly in states belonging to the European Union and the coveted Schengen Zone. This demand is in part based on the difficulty in accessing these blocs. The Passport Index ranks all Schengen countries in joint 48th place on its authoritative Welcoming Countries list, only allowing visa-free access to less than half of the countries on earth. The last few years have seen immense change for the European industry, as several countries have shifted focus to their programmes.

With the closure of schemes in the United Kingdom and Ireland in recent years, would-be investors have increasingly turned their attention towards Greece’s Golden Visa and Spain’s Golden Visa, which have seen unprecedented demand. Despite the investment this has brought in, there has been intense debate in both countries surrounding the effect these schemes have on their domestic housing markets. Opportunistic voices have argued that inflation in house prices has to a large extent been driven by the purchase of property from investors via these Golden Visa schemes. Greece and Spain have taken very different approaches to addressing these critiques of their programmes, the effects of which are worth examining in some detail.

The Spanish government has opted for a blanket ban, announcing in April that it would cancel its residency-by-investment programme entirely. Prime Minister Pedro Sánchez stated that the investment vehicles have ‘made it impossible to find decent housing for those who live and work in them and pay their taxes every day.’ For Sánchez, however, the Golden Visa scheme, and the foreign investors that leverage it, has served as an easy target onto which he could deflect wider critiques of his economic policy. Property website Idealista has revealed that less than 0.1 per cent of 4.5 million homes sold between the programme's conception in 2013 and November 2022 were purchased under the scheme. Fundamentally, like the majority of Western Europe, structural supply-side issues in housing have contributed to skyrocketing property costs – not the actions of a small group of migrant investors.

One Size Does Not Fit All

In contrast to Spain, Greece has opted for a more nuanced and, I would argue, ultimately more effective approach. Greece has targeted the regions that are most popular for residency applications: Thessaloniki, Athens, and the island destinations Mykonos and Santorini, and raised the minimum investment threshold from €500,000 to €800,000 in these areas. In the rest of the country, the threshold has risen from €250,000 to €400,000. At Arton Capital, for years we’ve utilised our deep local knowledge, adaptability, and industry-leading expertise to help investors find the right investment product in Greece. While these reforms have only been enacted recently, we’ve already seen their impact on the ground. The new staggered structure incentivises investment into the areas that need it most, spreading funding more evenly across the country, and alleviating regional inequality.

Furthermore, the changes also mandate that investors must not use their property for short-term rentals. This prevents their use as holiday lets or Airbnbs, the proliferation of which have previously priced locals out of the housing market. As part of the evolution of Greece’s visa programme, all property acquired by investors must have a surface area larger than 120 square meters. This measure prevents city hotspot holiday rentals from overwhelming a saturated market.

Every country is different, and we must recognise that the investment entrepreneurs provide needs to be leveraged effectively and equitably. This ethos lies at the heart of Golden Visa schemes, ensuring that they serve as a positive force in both the lives of local communities as well as for investors. For affluent migrants, a Greek Golden Visa is an opportunity to access the European economic market whilst immersing themselves in a cultural hub with thousands of years of history. For locals, they can reap the benefits of a thriving local economy, as their quality of life improves thanks to the influx of foreign investment.

Tailored solutions, rather than abandonment, are ultimately the answer to overcoming any concerns, implementing strategically targeted policies that provide the maximum benefit. The Portuguese government has taken Greece’s innovative flexibility one step further. Last year, President Marcelo Rebelo de Sousa approved the ‘More Housing’ bill, which saw the nation retain its exceptionally successful Golden Visa scheme, which has brought in billions of euros in investment since its launch in 2012. However, to assuage concerns, no matter their basis in fact, over the effect on the housing market, the option to directly purchase real estate was removed late last year. Portugal’s Golden Visa programme has now moved in favour of funnelling capital towards new areas of growth. These include provisions that enable investment in science, arts, and culture, such as the reconstruction of national heritage projects or the discovery of new vaccines. For example, the Serralves Foundation, a cultural institution in Porto, houses an art museum and a magnificent 18-hectare park. Revenue from Golden Visas is central to its upkeep. For many investors, their investments need to provide both long term value through a diversified portfolio of assets, and also reflect their deeply held values. This latest solution provides just that, setting out a framework that can inspire other countries and savvy investors to spark a new growth boom.

As part of Portugal’s reforms, investors are also able to acquire residency by incorporating their company into the domestic market or investing in an existing company, provided that a minimum of five permanent jobs are created as a result. As nations across the world grapple with economic crises, investor immigration schemes are supporting struggling employment markets and nurturing opportunities for local citizens. Moreover, business leaders can benefit from the wealth of local expertise that these initiatives provide, leveraging cultural exchange to drive growth and prosperity for their businesses. Local multi-sector knowledge is paramount, and at Arton Capital, our on-the-ground team possesses the expertise to help entrepreneurs get off to a flying start in this exciting and dynamic market.

Portugal’s tailored approach toward its Golden Visa programme should serve as the benchmark for investor immigration, taking a holistic view towards foreign investment rather than viewing wealthy migrants through a narrow lens.

Horizons: Finding Certainty In An Uncertain World

So, what does the investment horizon look like for the European market? Some have said that the industry's best years are behind it, but I firmly disagree. Demand for access is rapidly growing from entrepreneurs in the United States, the Arabian Gulf, and China. There are signs that other countries are looking to the opportunities that investment migration schemes provide, bucking the European trend of sunsetting these schemes. On Arton Capital’s watch list is Hungary, which recently relaunched its own Golden Visa programme. Hungary’s scheme will include three new investment avenues for entrepreneurs to choose from, including the option of a €250,000 contribution to a real estate investment fund. This option means Hungary’s Golden Visa is set to become one of the most cost-efficient programmes in Europe: entrepreneurs will flock to the opportunity.

In a political and economic environment characterised by endemic uncertainty, Golden Visas offer High Net Worth Individuals an opportunity for a more stable life. With seismic elections incoming and growing geopolitical tensions, it is unsurprising that investor migration schemes are an attractive option for those wanting to secure their future for generations to come. While any scheme should be constantly tweaked, sensitive to the needs of each individual country, it would be a mistake to scrap tools that are proven generators of growth. At Arton Capital, we’re committed to helping investors unlock the potential these programmes present, using our unique expertise to create solutions that are bespoke to any individual need. We see a pathway to equitable and sustainable growth through Golden Visas, and believe that with the right guidance, the investment prospects for entrepreneurs looking at European markets look bright once again.

Armand Arton
Armand Arton is a visionary entrepreneur, philanthropist, and a global citizen. He has extensive experience serving the specialized needs of high-net-worth investors around the world. Arton is the Founder and President of Arton Capital, the leading global financial advisory practice specialized in impact investing in programs for residence and citizenship. Arton is a trusted advisor to over twelve governments in structuring and implementation investment programs to boost foreign direct investments and generate social impact. He is the Founder and Chairman of the Global Citizen Forum, the Canadian non-profit social action platform built on a community of leaders committed to improving the state of global citizenship for the generations to come. Arton is also a Founder and Trustee of the Global Citizen Foundation, whose mission is to invest in children and young people in need. As a co-founder and board member of the Global Investor Immigration Council (GIIC), Arton seeks to promote industry transparency, advocacy, and best practices. Arton is a member of the Young Presidents’ Organization (YPO), Board Member of Endeavor and Expert Network in the Field of Mobility and Migration of the World Economic Forum.