Rich Chinese Face Dwindling Immigration Choices as Europe’s Golden Visa Era Ends

European Union flags outside the European Commission building in Brussels, Belgium, on Oct. 24, 2014. Carl Court/Getty Images

The European Union’s golden visas have been closed or tightened one after another, with the wealthy Chinese most affected. At the same time, however, Russia and some African countries are now offering golden visas.

Starting March 16, the Portuguese government stopped issuing golden visas. Announcing the decision last month, Portuguese Prime Minister Antonio Costa said the move was to “combat speculation in property prices.”

Among the golden visas of many European countries, Portugal’s golden visa is the most cost-effective. In addition to the 500,000-euro (about $540,000) home purchase threshold, one can become a naturalized citizen on a golden visa for five years and only needs to stay 35 days during that period.

Since its launch in 2012, the scheme has attracted nearly 6.8 billion euros ($7.3 billion) of investment, most of it into the property sector, according to Portugal’s Foreigners and Border Services.

Two days before Portugal announced its decision to suspend its golden visas, the Irish government shut down its Immigrant Investor Program without warning. Ireland’s Justice Minister Simon Harris abruptly announced on Feb. 14 that applications would no longer be accepted the next day.

Under the Irish government’s scheme, which was also introduced in 2012, applicants are required to have a personal wealth of at least 2 million euros (about $2.14 million) and to make a partial charitable donation of the necessary amount. Nearly 1.252 billion euros (about $1.34 billion) of investments have been approved under the scheme since it was set up, according to Ireland’s Department of Justice.

Minister for Justice Simon Harris at a press conference at Farmleigh House after the British Irish Intergovernmental Conference, in Dublin, on Jan. 19, 2023. The Justice Minister announced the scrapping of Ireland's 'golden visa' scheme. Getty Images

In addition, Latvia’s coalition government decided on March 28, 2022, to end its golden visa scheme, which allowed foreigners to obtain residence permits by buying expensive apartments and villas.

On Feb. 17, 2022, the British government announced the immediate closure of its T1 investment immigration channel in the United Kingdom.

Six European countries—Portugal, Ireland, Latvia, the UK, Greece, and Spain—have attracted more than 1 billion euros ($1.1 billion) in investment through golden visas by the end of 2021, according to Irelands’ Immigration Investment Program.

Four of these six countries have already abolished golden visas, while Greece and Spain are currently changing their policies.

Greece has already announced it will raise the threshold for golden visas from 250,000 euros (about $270,000) to 500,000 euros (about $540,000) in some areas from May.

Mas Pais, the left-wing party in Spain, introduced a bill in mid-February that would abolish the practice of obtaining a residence permit by buying only property worth more than €500,000 (about $540,000).

Golden Visa Era Comes to an End

The golden visa is a type of investor immigration program in which wealthy individuals obtain residence permits or citizenship by investing in real estate, starting a business, or making capital investments.

After the European debt crisis in late 2009, many European countries introduced golden visas to attract investment. After obtaining an EU passport, the holder can travel freely within the Schengen zone, live and work in all EU member countries, as well as enjoy health care and tax benefits within the country’s jurisdiction.

However, as the visa has gained popularity, controversy has followed. With its heavy emphasis on investment and often lax background checks on applicants, golden visa programs pose security risks and provide an advantage for money laundering, tax evasion, corruption, the financing of terrorism, and infiltration by organized crime.

Jiang Semniao, 18, a golden visa holder, poses holding his awards and diplomas in central Athens on Oct. 31, 2019. Aris Messinis/AFP via Getty Images

Furthermore, some citizens of countries that have adopted golden visas are unhappy because foreigners drive up local real estate prices.

On March 9, 2022, the European Parliament voted overwhelmingly to end the so-called golden passport scheme, calling for an end to the practice of selling citizenship by EU countries and urging a total ban by 2025.

Rich Chinese Have Fewer Options

Wealthy Chinese are most affected by the end of the golden visa era. In the years when golden visas were in place in EU countries, Chinese buyers accounted for the vast majority.

Chinese nationals accounted for 97 percent of Ireland’s golden visa applicants last year.

Since Greece launched golden visas in 2014, Chinese nationals have accounted for 63 percent of all applicants.

Of the roughly 12,000 golden visas issued by Portugal since 2012, more than 5,000 have been granted to Chinese nationals.

Although only 28 percent of Spanish golden visas are held by Chinese citizens, they rank first compared with other countries.

Li Yiming, a Japan-based China expert and commentator, told The Epoch Times on March 25 that the wealthy Chinese are buying foreign passports and moving their wealth out of China because “the Chinese Communist Party (CCP) itself started as a bandit, robbing people of their money to make it their own. Although the CCP is now in the form of a ‘government,’ it is still doing this.”

Russia, Africa Attract Chinese Investments

While Europe is closing the door on golden visas, Russia and several African countries are trying to attract foreign investment through golden visas.

Sunset lights the Kremlin and frozen Moscow River in Moscow, Russia, Jan. 16, 2022. The Canadian Press/Alexander Zemlianichenko

Starting on Jan. 1, Russia officially opened its golden visa. Russian President Vladimir Putin signed legislation approving the program in July 2022. Foreigners who invest 30 million rubles (about $390,000) or more in property, government bonds, or businesses will be able to obtain a residence permit in Russia within six months.

The African nation of Kenya is reportedly in the late stages of introducing citizenship through investment. Uganda is also working on a similar project.

Li believes wealthy Chinese nationals are unlikely to head to Russia or Africa.

“If they run, they will run to a safe place, a country with laws and human rights protection. They definitely will run to these [safe] places rather than dangerous places. There may be some who want to go there [Russia and Africa] to make some money, but no one would be so stupid to transfer their money there for security reasons.”

Ellen Wan contributed to this report.