Golden Visas are residency-by-investment programs popular among high-net-worth individuals, particularly business owners.
Albert Ioffe, a Legal and Compliance officer at Immigrant Invest, explains the key reasons behind that popularity, and compares some of the best Golden Visa programs.
1. Plan B Residency
Golden Visa programs lead to a residence permit in a country that provides them. This means that investors can enter or leave the said country any time, even if the borders are closed for non-residents. As residents, investors can live, work, do business, receive education, and in some cases work for a local employer.
Those residency permits are typically issued for one or two years, but are renewable. To maintain the status, investors must keep any program-specific requirements.
2. Path to Second Citizenship
After several years of maintaining the residency status, investors can apply for either a permanent residence, or citizenship. The citizenship status comes with more benefits, such as global mobility, more business opportunities, and the right to pass the status to other generations. Most countries with Golden Visa programs also support dual citizenship.
3. Enhanced Travel Mobility
EU Golden Visa programs come with a visa-free access to the Schengen Area. Investors who later become citizens, can travel freely even further using their new passport, and be eligible for travel and work visas, such as US visas. Business owners can travel more freely to manage international operations, and attend meetings.
4. Business Expansion Opportunities
Some Golden Visas are granted in exchange for registering a business in their country, or for opening an international subsidiary, or moving an existing company there. Even if a program doesn’t have a business investment option, investors can usually run a business in its country after receiving a government permit.
Business owners often invest in Golden Visa programs to diversify their portfolios across new regions and sectors, and thus reduce risk and provide security against market fluctuations. They can become eligible for government grants, simplified regulations, and other perks.
Investing in local businesses or startups can yield high returns and create employment opportunities, fulfilling visa requirements. Some Golden Visa programs allow investments in government bonds, which can provide stable returns of 2-4% annually.
Another popular Golden Visa option, a real estate investment, can lead to significant capital appreciation. Properties in tourist and business hubs can generate substantial rental income.
5. Tax advantages
Golden Visa holders can benefit from favorable tax regimes. For example, Italy has a special tax regime for new residents, where they can pay a flat tax on foreign income regardless of the income amount.
Popular Golden Visa Programs
UAE Golden Visa is granted for investing AED 10 million or more in Freehold Zone real estate. After getting this visa, investors apply for a 10-year renewable residence permit.
Benefits include:
- entrepreneurship support;
- simplified company registration;
- free economic zones offering 100% foreign ownership and profit repatriation;
- no income, property, capital gains, inheritance, or gift tax;
- corporate tax is 9% — for comparison, the average EU corporate tax is 21.3%;
- access to international banks;
- convenient access to Middle Eastern, Asian, and African markets;
- family reunification;
- no required residency;
- free ESAAD Privilege Card.
Cyprus Golden Visa is granted for investing €300,000 or more in real estate, company shares, or investment funds. Investors get a permanent residence permit.
Benefits include:
- no global income tax;
- 12,5% corporate tax, one of the Europe’s lowest;
- double tax treaties with over 50 countries;
- permission to start a business, including by a company transfer;
- access to international banks;
- freedom to travel within the Schengen Area;
- citizenship after five years;
- family reunification.
Greece Golden Visa requires an investment of €250,000 or more in real estate, capital contributions, government bonds,mutual funds, alternative investment funds, or bank deposit. This visa provides a 5-year renewable residence permit.
Benefits include:
- no global income tax;
- progressive personal income tax between 9% and 44%;
- reduced corporate income tax rate of 22%;
- flat foreign income tax of €100,000 after transferring one’s tax residency;
- permission to start a business;
- access to global banking;
- visa-free travel within the Schengen Area;
- citizenship eligibility after seven years;
- family reunification.
Italy Golden Visa, or Investor Visa, requires investing €250,000 or more in an innovative start-up, business, government bonds, or philanthropy. This visa provides a 2-year renewable residence permit.
Benefits include:
- flat tax of €100,000 per year on worldwide income;
- no global income tax on Investor Visa holders who are non-residents;
- double tax treaties with over 90 countries;
- permission to start a business;
- access to global banking;
- visa-free travel within the Schengen Area;
- citizenship eligibility after seven years;
- family reunification.
Hungary Golden Visa requires investing €250,000 or more in real estate funds, residential or commercial property, or as a public trust donation. This visa provides a 10-year renewable residence permit.
Benefits include:
- income tax rate of 15%, lower than the EU’s median;
- permission to start a business in Europe;
- access to global banking;
- no minimum stay requirement.
Conclusion
Golden Visas offer numerous benefits for business owners, including enhanced mobility, business expansion opportunities, tax advantages, and a high quality of life. Popular programs like those in the EU and the UAE provide various investment options and significant advantages for high-net-worth individuals.
By strategically utilizing Golden Visa programs, business owners can secure valuable residency rights while expanding their global business footprint and optimizing their investment portfolios.
