99. The "Golden Visa" Crackdown in Europe

For nearly a decade, buying a property in Southern Europe was the golden ticket for non-EU citizens to gain residency and visa-free travel across the Schengen Zone. However, the era of easy “pay-to-stay” programs is shifting rapidly. If you have been eyeing a retirement villa in the Algarve or an investment apartment in Madrid to secure your residency, you need to understand the new rules immediately. The door isn’t fully closed yet, but the lock is changing.

The End of the Real Estate Route in Portugal

Portugal was long considered the easiest entry point into Europe for American, British, and other non-EU investors. Since its inception in 2012, the Portuguese Golden Visa attracted over €7 billion in investment. However, a housing crisis in cities like Lisbon and Porto forced the government to act.

In October 2023, the Portuguese government passed the “Mais Habitação” (More Housing) bill. This legislation fundamentally changed the Golden Visa landscape by eliminating real estate investment as a qualifying path.

You can no longer purchase residential or commercial property to qualify for the visa. Previously, a €280,000 to €500,000 property purchase was enough. That option is gone.

How You Can Still Qualify in Portugal

Despite the headlines, the Portuguese Golden Visa program remains active. It has simply pivoted toward financial contributions rather than property ownership. The most popular current routes include:

  • Investment Funds: You can invest a minimum of €500,000 in qualifying venture capital funds. These funds must not have more than 60% of their capital allocated to real estate.
  • Scientific Research: A contribution of €500,000 to public or private scientific research institutions.
  • Cultural Heritage: A donation of €250,000 toward the recovery or maintenance of national cultural heritage.
  • Job Creation: Creating at least 10 full-time jobs for Portuguese citizens.

The “stay” requirement remains attractive. You only need to spend an average of seven days per year in Portugal to maintain the visa.

Spain: The Next Domino to Fall

Following Portugal’s lead, Spain is currently in the process of dismantling its own “Golden Visa” real estate route. In April 2024, Spanish Prime Minister Pedro Sánchez announced his government’s intention to scrap the residency-by-investment scheme for property buyers.

Historically, non-EU citizens could obtain Spanish residency by purchasing real estate worth at least €500,000. This influx of foreign capital, while beneficial for the economy, was blamed for pricing locals out of major housing markets like Madrid, Barcelona, Malaga, and the Balearic Islands.

What is the Current Status?

As of late 2024, the legislative process to end the program is ongoing. The Spanish Congress is debating the amendment, specifically looking to modify Law 14⁄2013 which established the visa.

  • The Window of Opportunity: Until the law is officially published in the State Official Gazette (BOE), applications are still being accepted under the old rules. Legal experts suggest a “rush” period is currently happening, where investors are trying to file applications before the ban takes effect.
  • Grandfathering: The Spanish government has indicated that those who already hold the visa, or submit their application before the law changes, will likely retain their rights. Retroactive cancellation is legally difficult and unlikely.

If the real estate route closes as expected, Spain may still offer visas for other economic activities, such as:

  • Buying €2 million in Spanish public debt.
  • Investments of €1 million in Spanish companies.
  • Bank deposits of €1 million in Spanish financial institutions.

Greece Raises the Stakes

Greece has historically been the third major player in the European Golden Visa market. While they have not banned the real estate option, they have made it significantly more expensive to reduce demand in saturated areas.

Effective September 1, 2024, Greece implemented a two-tier system for property investment:

  1. Tier 1 (High Demand): The minimum investment soared to €800,000. This applies to the entire administrative region of Attica (which includes Athens), Thessaloniki, Mykonos, Santorini, and other islands with populations over 3,100.
  2. Tier 2 (Rest of Greece): For areas not listed above, the minimum investment increased from €250,000 to €400,000.

Furthermore, investors are now prohibited from using these Golden Visa properties for short-term rentals (like Airbnb). They must be used for long-term leasing or personal use.

Why is Europe Cracking Down?

The tightening of rules is not just about local housing prices. It is also a result of sustained pressure from the European Commission. Brussels has long criticized these programs, arguing they pose risks regarding security, money laundering, and tax evasion.

The EU has urged member states to end “citizenship-by-investment” schemes entirely and strictly regulate “residency-by-investment” programs.

Viable Alternatives: The Rise of the Digital Nomad Visa

If you do not have €500,000 to invest in a Portuguese fund or €800,000 for a Greek villa, the “door” isn’t closed. It has just moved. Most Southern European nations are shifting focus from passive investment to active income.

Digital Nomad Visas (DNVs) have become the primary alternative for expats. These do not require buying property. Instead, they require proof of remote income.

  • Portugal (D8 Visa): You must prove a monthly income of roughly €3,280 (four times the minimum wage). You must also secure a 12-month lease.
  • Spain (Digital Nomad Visa): Launched in 2023, this requires proof of income around €2,600 per month. It offers a special tax regime (the Beckham Law) which creates a flat 24% tax rate on income up to €600,000.
  • Italy: Italy launched its Digital Nomad Visa in April 2024. It requires an annual income of roughly €28,000 and comprehensive health insurance.

These visas do not grant immediate permanent residency in the same way the Golden Visa did, but they allow you to live in Europe legally and eventually work toward permanent status (usually after 5 years).

Frequently Asked Questions

Can I still get a Golden Visa in Portugal if I buy a hotel for renovation? No. The new law in Portugal excludes all direct and indirect real estate investments. You cannot qualify by buying commercial property, hotels, or residential homes. However, you can invest in a fund that holds commercial assets, provided the fund itself is not a “real estate fund.”

If I already have a Golden Visa, will I lose it? In both Portugal and Spain, current visa holders are protected. The changes apply to new applications. Renewals for existing Golden Visa holders in Portugal follow the old rules, meaning you are not required to convert your property investment into a fund investment.

Is the Spanish Golden Visa ban official yet? As of late 2024, the legislation to end the real estate route in Spain has been proposed and is moving through Congress, but it is not yet fully enacted law. There is a narrow window to apply, but it requires having the funds and paperwork ready immediately.

Are there any cheap Golden Visas left in Europe? Hungary recently relaunched a Guest Investor Program (Golden Visa) in 2024. It offers a real estate fund option at €250,000 or a direct residential property purchase of €500,000. This is currently one of the lowest entry points in the EU for a residency-by-investment program. Malta also offers a permanent residency program, but it involves a mix of contributions, donations, and property leasing that usually totals over €150,000 in non-recoverable costs.