Golden Visa’ or ‘Residency by Investment (RBI) programs are designed to attract foreign capital and business people by providing residency rights, sometimes with a clear path to citizenship, in return for a substantial investment. These programs are prevalent among high-net-worth individuals seeking alternative residency, with objectives to enhance global mobility, improve lifestyle, diversify and protect wealth, or access new business opportunities. The European Union (EU) is one of the most sought-after destinations in this regard.
Several European countries have reformed or completely abolished their RBI programs as Ireland did with its Investor Immigration Program (IIP) in 2023. The Spanish government has also announced plans to eliminate the Golden Visa program, specifically the real estate investment pathway, which is a popular choice among investors. Other investment options, such as buying government bonds, bank deposits, investment funds, or the stock market, may still be available for the time being. The exact timeline for the phase-out has not been officially confirmed. It’s expected to take several months until the end of 2024 if not longer, to complete the legislative process.
Meanwhile, the Portuguese and Greek Golden Visa programs, which have recently undergone major overhauls, continue to attract a wide range of international investors.
Portugal’s and Greece’s Golden Visa Programs
Portugal’s Golden Visa Program has been a popular choice since its inception in 2012. Known for its diverse investment options and the ability to gain Portuguese residency and potential citizenship, the program is a gateway to the EU’s extensive benefits, including freedom of movement within the Schengen Zone.
Greece’s Golden Visa Program was launched in 2013 and is primarily focused on real estate investments. It offers a straightforward path to residency with relatively low investment thresholds, making it an attractive option for those seeking residency in a country known for its rich history, culture, and strategic location within Europe.
Investment Options
Portuguese authorities suspended the real estate investment option of the Golden Visa program due to rising housing concerns among locals in October 2023. However, foreigners can opt for one of the following investment routes to qualify and obtain permanent resident status in Portugal:
- Fund Investment: €500,000 into a venture capital or private equity fund registered in Portugal. The fund must invest at least 60% in companies headquartered in Portugal and have a minimum five-year maturity.
- Company Capital Transfer: €500,000 capital transfer to increase shares in a Portuguese company, requiring the creation of five new jobs.
- Research and Development: €500,000 investment in public or private institutions integrated into the national scientific and technological system.
- Jobs: Creation of at least 10 new jobs in Portugal.
- Artistic Production: Invest €250,000 in artistic production or supporting the arts in Portugal, including film productions.
Remarkably, a 20% discount applies to all investment options if made in a low-density area, which means that at least €200,000 investment in artistic production, or the creation of eight full-time jobs can qualify if made in certain, less populated regions.
In contrast, the Greek Golden Visa program focuses on real estate investment. Authorities in Greece significantly revised the required minimum investment amounts in 2024 and introduced tiered thresholds based on regions, so the minimum investments are:
- €400,000 for most areas of Greece.
- €800,000 in certain high-demand regions like Athens, Thessaloniki, Mykonos, Santorini, and islands with over 3,100 residents.
Notably, there’s a transition period. By making a 10% deposit by August 31st, 2024, and finalizing the investment by December 31st, 2024, applicants can still qualify under the previous minimum of €250,000 for certain property types like renovation projects or listed building restorations. Short-term rentals, like Airbnb, won’t be allowed under the new program rules.
Alternative to real estate investments, foreigners can qualify for Greek residency by investing at least €400,000 in the Greek economy through various channels such as purchasing shares in Greek companies, acquiring government bonds, depositing funds in a Greek bank, or making a capital transfer. Investing in an Alternative Investment Fund (AIF) operating in Greece or another EU Member State, and is intended to invest exclusively in real estate in Greece, can also qualify. These investments must be retained for at least five years.
Choosing Between Portugal and Greece
The selection of Portugal or Greece for a Golden Visa program hinges on an investor’s investment goals and preferences. Portugal offers a wider range of investment options beyond real estate, including venture capital funds, company shares with job creation, research & development, and artistic production that can include film production. Greece, on the other hand, prioritizes real estate investment with minimums varying by location.
Portugal generally requires a higher minimum investment (€500,000) compared to Greece’s base minimum (€400,000). However, Portugal offers a significant discount (20%) for investments in designated low-density areas, potentially reducing the minimum to €200,000.
Greece has a brief transition period (until December 31, 2024) where applicants can qualify under the previous lower minimum (€250,000) for specific property renovations.
The company capital transfer option might be well-suited for those investors whose business goals align with job creation in Portugal. Investing in venture capital funds or AIFs carries a higher risk profile than real estate or government bonds. Long-term goals should also be factored in: does the investor aim to eventually reside in Portugal or Greece, or is residency the primary objective?
One key distinction between the programs lies in work authorization. Holders of the Portuguese Golden Visa have the right to work in Portugal, while a Greek Golden Visa does not automatically grant work permission in Greece.
Residence permits issued by Greece through the Golden Visa program are valid for five years and can be renewed if the qualified investment is maintained. Portugal issues residence permits under its Golden Visa program with a two-year validity, also renewable.
The important factor to consider is the application processing times. Obtaining a Portuguese Golden Visa can take up to 18 months. However, Portuguese authorities have pledged to implement reforms to streamline the application process and reduce waiting times to six months. In contrast, the Greek Golden Visa can be obtained in as little as three months, provided all required documents are in order.
Eligibility Criteria
Both Portugal and Greece share similar eligibility criteria beyond the investment itself. Generally, applicants must be over 18 years old, non-EU nationals, have a clean criminal record, and pose no threat to national security.
There are no specific nationality restrictions for the Portuguese Golden Visa program. This means everyone could potentially be eligible, assuming they meet all other criteria (clean criminal record, no threat to national security, etc.).
The situation in Greece is less clear. While there aren’t general nationality exclusions, some nationals may face additional scrutiny or limitations due to sanctions or political situations. Hence, it’s always advisable to consult with immigration lawyers specializing in the program to confirm current eligibility.
Pathways to Citizenship
To maintain residency for the Portugal Golden Visa, investors must spend an average of seven days per year in the country, with a minimum of 14 days every two years. Greece’s requirements are less clear-cut; there’s no minimum but you’ll need to show genuine residency intentions, likely involving spending a significant amount of time in Greece.
Both Portugal and Greece offer pathways to citizenship through their Golden Visa programs, but Portugal provides a potentially faster route. Applicants in Portugal can apply for citizenship after five years of legal residence with minimal physical presence requirements. Eligibility for citizenship requires passing a basic language test and demonstrating integration into Portuguese society. Greece, on the other hand, requires a minimum of seven years of continuous residency with stricter physical presence rules throughout, making it a longer and potentially more demanding process. Citizenship requires demonstrating ties to Greece, including language proficiency and integration into Greek society
Family Inclusion
The Greece residency by investment program extends to the investor’s spouse or civil partner, children under 21 years old, and parents of the main applicant and the spouse
Foreigners applying for the Portuguese ‘Golden Visa’ program can include a spouse or partner, children under 18, and dependent children over 18 if studying or financially dependent. They can also include parents over 65 years old (or younger if financially dependent) of the investor and the spouse. Moreover, the Portugal ‘Golden Visa’ can also be extended to dependent siblings under the main applicant’s guardianship and other relatives, if certain dependency requirements can be proven.
Conclusion
Both, Portugal and Greece offer compelling Residency by Investment programs, each with unique advantages and challenges. Portugal has diversified its investment options, focusing on innovation and business development, making it suitable for investors interested in a broad range of sectors beyond real estate and those interested in a straightforward path to EU citizenship. Greece’s program, as said, focuses on real estate investments, and is ideal for those, who prioritize wealth diversification with minimal residency requirements. Choosing between the two depends on the investor’s financial strategy and long-term goals. Portugal offers a diversified investment landscape and potential tax benefits, while Greece provides a more accessible entry point with rapid processing times and no mandatory stay requirements.
Both programs provide significant benefits, including Schengen Zone access and family reunification, but the choice largely depends on the investor’s financial strategy and lifestyle preferences. Portugal’s evolving regulations reflect a strategic shift towards sustainable and diversified investments, whereas Greece’s straightforward real estate focus continues to appeal to traditional property investors.