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Key Takeaways
Golden Visas are becoming increasingly popular among high net worth investors as they enable them to gain residency in a host country by making qualified investments.
Some common steps for applying for a Golden Visa include: Researching the available Golden Visa programs, fulfilling the application requirement, submitting the application, approval and processing and maintaining and renewing your visa.
By investing through Bay Street's Alt Path Hotel Fund, investors can enjoy cash back incentives from the Portuguese government as well as acquire a Golden Visa.
Disclaimer
The contents of this article are for educational purposes only. They are not intended to be a source of professional financial advice. You will find experts on investing here.
What is a Golden Visa?
A Golden Visa is a type of residency by investment program offered by various countries around the world, that allows foreign investors and their families to obtain residency in a host country by making qualifying investments. The investment requirements and benefits vary as each country has its own specific application process and investment requirements.
Typically, Golden Visa programs require investors to make a significant economic contribution by investing in real estate, business ventures, government bonds or other approved avenues. In return, investors and their families gain the right to live, work, study and even retire in the host country.
Invest With Bay Street
For investors looking to invest in Portugal, Bay Street Capital Holdings represents one of the forty approved funds for Golden Visa applications in the country. The firm is working on building and operating boutique hotels in four cities in Portugal, and has secured 45-55% cash back incentives from the Portuguese government. These projects have an estimated IRR of 18.87% and are a great investment option for investors looking to get into hotel investing. In the US, the firm currently operates properties in Lake Tahoe and Los Angeles. Over their duration of operation, these properties have recorded significant profits.
By investing in Bay Street's Alt Path Hotel Fund, investors also have the opportunity to acquire a Portuguese Golden Visa. Our qualified team of investment professionals are well equipped to guide you through the Golden Visa application process and investment requirements. Whether you're looking to diversify your investment portfolio or get yourself established in Portugal, investing with Bay Street will help you take advantage of this opportunity and achieve your long term investment goals.
Take advantage of our expertise and schedule your appointment with us today.
How to Apply for a Golden Visa
Different countries have different Golden Visa application processes. Here are some common application steps for investors.
Step #1: Research the available Golden Visa programs
Start by researching countries that offer Golden Visa programs and look at the program requirements for each. Be sure to consider factors such as investment requirements, residency benefits and tax implications. This will help you identify a program that aligns with your budget and investment goals.
Step #2: Ensure that you meet all the application requirements
Depending on the program that you're applying for, check for all the listed requirements and ensure that you have all the supporting documents such as your identification documents, proof of investment funds, criminal background checks, medical certificates and health insurance. Check to ensure that they are all up to date and that they meet the requirements of the Golden Visa program.
Step #3: Get started with your application
With the help of a financial advisor and an immigration consultant, follow the guidelines provided by the immigration authorities for submitting your Golden Visa application. This step may involve filling out the necessary forms, paying application fees and doing language tests where necessary.
Pay close attention to deadlines, submission procedures and any additional requirements specified by the program that you're applying for. Be sure to double check your application materials to ensure accuracy of all information, before submission.
Step #4: Submit your application and wait for approval and processing
The next step is to submit your application to the relevant authorities and wait for approval. This can be done online or in person, depending on the guidelines of the specific program that you're applying for. Approval for a Golden Visa can take anywhere between 3-18 months.
Once your application is reviewed and approved, you can go ahead and make a qualifying investment according to the specific program that you've applied to. Be sure to monitor your investment portfolio, fulfill residency obligations and stay informed about any changes to the program's rules and regulations in order for you to remain Golden Visa valid.
Step 5: Maintain and renew your visa
Once you receive your Golden Visa, ensure that you manage your investments and residency status in accordance with the program's requirements. It is essential that Golden Visa applicants keep track of renewal deadlines and ensure that they maintain compliance with visa regulations throughout their residency, in order to maintain their residence permit.
Top European Golden Visa Countries
Cyprus
For investors interested in acquiring a Cyprus Golden Visa, they must invest in either of these options:
Purchase residential property that is worth at least €300,000.
Invest in a commercial property like a hotel or office that is worth at least €300,000.
Make a minimum investment of €300,000 in share capital in a company that is registered and operates in Cyprus.
Make an investment of at least €300,000 in Cypriot Collective Investment Organization.
Benefits of the Cyprus Golden Visa
Golden Visa holders are able to travel visa free to all 27 countries in the EU.
The Cyprus Golden Visa makes inclusions for the investors' spouse, children under the age of 18 years and children under the age of 25 who are fully dependent on the primary applicant.
Investors can enjoy tax benefits as they are not required to pay taxes on global income, property or inheritance. In addition, Cyprus only charges 12.5% in corporate tax, which is among the lowest rates in the European Union.
Investors can gain citizenship through naturalization in Cyprus 5 years after acquiring their Golden Visa.
Cyprus allows for dual citizenship and investors don't have to renounce their original citizenship if they also want to become citizens of Cyprus.
Greece
For investors interested in acquiring a Greek Golden Visa, here are the investment options:
Invest at least €400,000 in a single real estate property in the wider areas of Greece.
Make an investment of at least €800,000 in Attica, Thessaloniki, Mykonos and Santorini and islands with a population of more than 3,100.
Invest at least €400,000 into a company that’s registered in Greece, in Greek government bonds, in shares of real estate investment companies or bonds or into a Greek bank.
Benefits of the Greece Golden Visa
Investors can travel visa free to all the countries within the Schengen Zone.
Individuals and their families can enjoy access to Greece's high quality healthcare and education systems.
The program allows the investor to include their spouse and children under the age of 21 in the application.
Greece allows dual citizenship and therefore, investors are not required to renounce their original citizenship in order to qualify for a Golden Visa.
The Greek Golden Visa program has no minimum stay requirements for investors to retain their residency status.
Malta
The Malta Golden Visa is popular among investors due to its efficient application system. To qualify for a Maltese Golden Visa, individuals are required to make any of these investments:
Contribute at least €100,000 to a government-approved fund.
Buy property in Malta worth €350,000 or €300,000 if the property is in the South of Malta and Gozo. Alternatively, investors can rent a property in Malta for €12,000 per annum or in the South of Malta and Gozo for €10,000 for a period of at least 5 years.
Make a contribution of €28,000 to the Maltese government if the applicant chooses to purchase a qualifying property or €58,000 if the property is leased.
Benefits of the Malta Golden Visa
With a Maltese Golden Visa, individuals can travel to all the countries within the Schengen zone.
The Malta residence by investment program includes the investor's family members, up to four generations.
Individuals and their families can enjoy a high quality life with full rights to live, work and study in Malta.
Individuals are less likely to experience a language barrier as English is a widely spoken language in Malta.
The country is known to have a low crime rate and thus individuals and their family members can enjoy living in a safe and peaceful environment.
Portugal Golden Visa
The Portugal Golden Visa program continues to be a popular option for investors since its launch in 2012. To qualify for a Portugal Golden Visa, individuals can invest in either of these options:
Donate a minimum of €250,000 to Arts or for preserving national heritage in Portugal.
Invest at least €500,000 in venture capital or in a private equity fund.
Make a donation of €500,000 to research and development activities.
Create employment for 10 employees or invest €500,000 in an existing Portuguese business and create employment for at least 5 employees.
For investors looking for Golden Visa investment opportunities in Portugal, invest with Bay Street through our Alt Path Hotel Fund. To learn more about the fund, schedule a session with one of our investment advisors here.
Benefits of the Portugal Golden Visa
Individuals with a Portuguese Golden Visa can travel visa free to all the European countries within the Schengen zone.
With a Portugal Golden Visa, individuals and their families gain the right to live, work and study in Portugal.
Unlike other residency programs, investors are required to spend a minimum of 7 days per year to maintain their residency status.
One can apply for citizenship or permanent residence in Portugal after holding a Golden Visa for five years.
Portugal's Golden Visa program allows applicants to include their family members, including spouse, dependent children and dependent parents. This makes it possible for families to live and travel together.
With a Portuguese Golden Visa, investors and their families can gain access to Portugal's high quality education and healthcare systems.
Spain
Due to the high standards of living in Spain, the country has become a popular destination for investors seeking a European Golden Visa.
For investors to qualify for a Spanish Golden Visa, they are required to:
Invest at least €500,000 in either commercial or residential real estate or a combination of both. Different buyers also have the option of combining their investment into one property. If the total investment amount exceeds the minimum amount that is required, it can be mortgaged out.
Invest at least €1 million in shares in Spanish companies.
Invest at least €2 million into Spanish treasury bonds.
Benefits of the Spain Golden Visa
With a Spanish Golden Visa, investors can travel visa free to all the countries within the Schengen Zone.
Applicants can include their family members, including their spouse, dependent children and dependent parents.
Investors can gain citizenship in Spain through naturalization after 10 years of permanent residency.
Individuals and their families can benefit from the high quality education and healthcare systems in Spain.
Difference Between Residency by Investment and Citizenship by Investment
Residency by investment and citizenship by investment are both pathways for individuals to obtain legal residency or citizenship in a foreign country through investment. However, there are notable differences between the two programs.
Residency by Investment
Residency by investment programs also known as Golden visa programs grant individuals the right to reside in a foreign country for a specified period, typically renewable on a regular basis. To qualify for a Golden Visa, investors are required to make a qualifying investment in the host country, such as real estate, in a business or in government bonds.
The primary objective of residency by investment programs is to attract high net worth individuals to contribute to the local economy and create jobs.
Residency by investment does not automatically lead to citizenship in the host country. However, some programs may offer a pathway to citizenship after a certain period of residency or through naturalization.
Citizenship by Investment
Citizenship by investment programs on the other hand grant individuals the right to obtain citizenship in a foreign country by making a qualifying investment. Typically, individuals don't need to fulfill any residency requirements for such programs.
Similar to Golden Visa programs, investors are required to make a significant financial contribution to the host country, usually in the form of a donation to a government fund, investment in real estate, government bonds or a combination of these options.
Citizenship by investment programs offer a direct pathway to citizenship, allowing investors to obtain a second citizenship and passport in a relatively short period, usually within a few months to a year.
Common Qualifying Investments for Golden Visa programs
For investors to qualify for a Golden Visa, they have to make a qualifying investment in the host country. Here are some of the common qualifying investments for Golden Visa programs.
Real Estate
Investing in real estate is one of the most popular options for Golden Visa programs. Investors are required to purchase either residential or commercial properties or enter into lease agreements. These investments contribute to economic growth and job creation.
Government Bonds
Investing in government bonds is another common option for Golden Visa programs. By purchasing government debt, investors inject capital into the host country that can go toward infrastructure development and social programs. Generally, government bond investments are a low-risk investment option.
Business Investment
Golden Visa programs often encourage investment in businesses to promote entrepreneurship and innovation. Investors may invest in new or existing businesses, startups, franchises or venture capital projects. Business investments create employment opportunities, drive economic diversification and support local industries.
Job Creation
Some Golden Visa programs require investors to create jobs in the host country in order to qualify for residency. As such, investors are required to set up businesses which create temporary or permanent employment opportunities for local residents.
Donation
Making philanthropic contributions to designated funds or programs may also offer investors a way to obtain a Golden Visa. In Portugal for example, one can acquire a Golden Visa by donating €250,000 in support of the arts or cultural heritage.
General Requirements for a Golden Visa program
To qualify for a Golden Visa, these are the general requirements that applicants are required to fulfill. Be sure to check the specific requirements for the program that you're applying for as different countries have different requirements.
For most Golden Visa programs, the main applicant is required to be over the age of 18 years.
Investors are required to make a significant qualifying investment in the economy of the host country, in exchange for a Golden Visa. This investment could be in real estate, business investment, government bonds or a deposit in a local bank.
Applicants are typically required to show proof that the funds used for the investment have been legally obtained. This may involve providing documentation such as bank statements or business ownership records.
Individuals are also generally required to have a clean criminal record, both in their home country and in any other countries where they have resided.
Some Golden Visa programs require applicants to have health insurance coverage in the country, either through a private insurer or the national healthcare system.
Many programs require applicants to spend a certain amount of time in the host country each year to maintain their residency status. This duration of stay can vary from a few days to several months per year.
Investors are required to renew their Golden Visas periodically as Golden Visa residency permits are usually issued for a limited duration.
Some countries may require applicants to demonstrate a basic proficiency in the local language or to complete an integration course as part of the application process.
Benefits of a Golden Visa
Some key benefits of having a Golden Visa include:
Residency rights: Most Golden Visa countries grant investors and their families the right to live, work, study and even retire in the host country. This can enable investors and their families to lead a high quality life.
Visa-free travel: As a Golden Visa holder, you can enjoy visa-free or visa-on-arrival travel to a number of countries worldwide. This can be of benefit to individuals who frequently travel for business or leisure.
Access to quality healthcare and education systems: Another benefit that individuals and families can enjoy is access to high-quality healthcare and education in the host country.
Tax benefits: Many Golden Visa programs offer tax incentives to investors such as no personal income tax and exemptions on foreign income. This can help investors develop proper tax planning and wealth management strategies.
Portfolio diversification: In order to acquire a Golden Visa, investors are required to make a qualifying investment in the host nation. This can allow investors to diversify their assets and portfolio by investing in different geographical locations, which can help with managing overall risk.
Pathway for citizenship: Some Golden Visa programs offer investors and their families a pathway to citizenship after a certain period of residency. This can enable investors to obtain full citizenship rights, including voting rights and eligibility for a second passport.
Legacy planning: Golden Visa programs enable investors to plan their family's future by providing them with residency rights, which can be passed down to future generations.
Bay Street Capital Holdings
Bay Street Capital Holdings is an independent investment advisory, wealth management and financial planning firm. With a focus on hotel investing, the firm is keen on growing client portfolios and minimizing overall risk.
To learn more about our Alt Path hotel fund, schedule an appointment with our experts today.
Sources
https://www.investopedia.com/how-to-apply-for-golden-visa-7976304
https://csglobalpartners.com/news-a-guide-to-applying-for-a-golden-visa/
https://www.investopedia.com/golden-visa-program-7975290
