While sorting out passports, visas and entry requirements are arguably the worst part about planning a trip abroad, one simple tool may be able to mitigate that entirely for some. The Golden Visa has sprung up in popularity because of the seeming ease behind this unique entry path to over 40 different countries across the globe.
So what is a Golden Visa? It’s also known as residency-by-investment which might explain the concept a bit better. Essentially, people can get residency or citizenship for themselves or their families too by contributing to a foreign country’s economy.
There are some specific requirements for individual countries, but it allows free travel into the country as well as potential tax benefits but there are some noteworthy downsides to the seemingly idyllic document. Investopedia delved into the little-known visa and what it could offer you.
Each country will have its own unique criteria and process for Golden Visas but there are some universal guidelines and actions you will need to follow. Some of the countries that take part in the scheme include:
- Australia
- Austria
- Canada
- Costa Rice
- Cyprus
- Greece
- Hong Kong
- Hungary
- Italy
- Jersey
- Latvia
- Luxembourg
- Malaysia
- Malta
- Mauritius
- Monaco
- Montenegro
- Namibia
- New Zealand
- Panama
- Portugal
- Singapore
- Spain
- Switzerland
- Thailand
- UAE
- UK
- US
Starting the Golden Visa application process should generally include some intense research on your part to find the scheme that best suits your lifestyle, values, goals and finances. It’s also worthwhile to delve into the country you may be headed to by considering the cost of living, politics and infrastructure.
Once you have this narrowed down you can hone in on the investment requirements. Some countries will require you to invest specific amounts in specific assets like real estate or government bonds.
When you’ve met the requirements, you can submit your application and provide all the necessary documentation. From there it might be a bit of a waiting game but you can also use this time to make yourself familiar with the renewal process.
Golden Visa applications can take a bit longer to process than normal visas, with some applicants facing over a year-long wait or more for their documents. It’s also only usually valid for one to two years depending on the country and it can be revoked at any time.
Some countries may have additional requirements even after you’ve been approved on paper, such as undergoing language proficiency tests. They may also offer defined pathways from getting a Golden Visa to achieving citizenship status.
These usually have some extra steps you have to take inbetween such as staying in the country for a certain amount of time. Others are simply a waiting game as you could be awarded citizenship a certain number of months or years after being granted a Golden Visa.
Despite the seemingly idyllic document, Investopedia warned there are some downsides to a Golden Visa, most notably the capital at risk in your investments which could result in a loss even if you do get approved for the visa. Governments can also sometimes shift or cancel Golden Visa programs suddenly which will put your funds and effort at risk.
Not fulfilling all of the requirements while you have your Golden Visa, such as being out of the country for too long, can see you losing your residency status. Investing in a foreign country can spark a number of tax implications that you may need to budget for, both in your home country and the one you’re investing in.
Unfortunately, Golden Visa applicants have notoriously been targets for advanced scammers and fraudsters. Investopedia urged: “Thoroughly research any program before investing, and work with reputable professionals.”