(Bloomberg) -- In a world coming apart at the seams, there’s arguably nothing more alluring than the “golden visa,” a Plan B for the wealthy that allows them to effectively buy a second passport—or even full citizenship—with a large cash investment. The European golden visa became popular during the European debt crisis more than a decade ago, when countries like Spain, Greece, Portugal and Italy were in dire need of cash.
Those programs raised more than $25 billion in 12 years, a third of which went to Portugal, well known for its massive influx of tourists, digital nomads and elderly visa seekers. But as these arrangements became popular, blowback over corruption and real estate prices increased, leading many countries to tighten rules. In this Bloomberg Originals mini-documentary, The Golden Migration May Be on Borrowed Time, we explore how the golden visa is being transformed as a result, and why its days may nevertheless be numbered.
As golden visas came under scrutiny, governments sought to channel the money into underfunded economic sectors. Several golden visa eligible funds cropped up, offering investments in everything from solar and farmland to wine, self storage and everything in between.
Julian Johnson, co-founder of Tejo Ventures, saw an opportunity to offer investment in Portugal’s solar infrastructure. “We are using the Portugal golden visa almost as a Trojan horse for us to invest in climate,” Johnson said. “There’s a massive amount of pipeline that we are essentially stepping in to finance.”
To align their efforts with local aspirations of sustainable development, Tejo Ventures teamed up with the Portuguese firm CleanWatts, which aims to distribute excess power to nearby communities. “When we heard about Tejo, it was like a match made in heaven. For us as a country, this kind of fund is bringing a lot of value,” said CleanWatts Vice President Maria Benquerenca.
Despite the shift though, the European Union continues to pressure members to tighten regulations on their golden visas. Spain recently announced a plan to end its program for foreign property buyers, while Greece has increased the minimum investment to 800,000 Euros ($894,000) in some cases. Watch The Golden Migration May Be on Borrowed Time to learn more about the threats to the golden visa.
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