Governments globally are rethinking so-called “golden visa” programs that allow wealthy investors, including crypto executives, to secure residency or citizenship.
Golden visa programs let applicants secure citizenship after investing a sum, often in the hundreds of thousands of dollars, in a local investment fund or real estate. While this can stimulate local economic development and attract talent from around the globe, some jurisdictions are rethinking the strategy.
In May, Malta’s golden passport program was ruled illegal by an EU court. The EU Commission said that Malta’s Exceptional Investor Naturalisation (MEIN) program was commercializing European citizenship. Cyprus and Bulgaria ended their golden visa programs in 2021 and 2022, respectively.
Global citizenship in the form of multiple passports may be attractive for crypto investors, especially as different countries implement more friendly tax and regulatory regimes for crypto. But getting that second or even third passport is becoming more difficult.
Golden visa programs get stricter as crypto investors seek citizenship
Golden visa regimes have often been touted as a solid way for countries to boost economic development.
Alessandro Palombo, co-founder and CEO of Bitizenship — an advisory firm working with Portugal’s golden visa program — told Cointelegraph, “It’s a mutually beneficial exchange: Countries gain investment and growth, while investors secure residency rights, enhanced mobility and, in some cases, a path to citizenship.”
When US President Donald Trump unveiled his plan for a “Trump Gold Card,” granting “green card privileges plus,” he said that the program would bring wealthy people to the US who would be “spending a lot of money, paying a lot of taxes, employing a lot of people.”
This can be particularly true for smaller countries with limited opportunities for economic development.
But critics and observers have flagged the potential for these programs to be abused. In the aforementioned case of Bulgaria, members of the European Parliament raised concerns that the program created an incentive for corruption and money laundering. According to Al Jazeera, the program’s main beneficiaries were from China, Russia and the Middle East.
The sudden entrance of rich investors and high earners can also lead to economic problems for residents.
On April 3, Spain canceled its golden visa over concerns about skyrocketing housing costs locals couldn’t afford. The path to citizenship through Spain’s golden visa program was an investment in the real estate market, and lawmakers believed that the program was contributing to the crisis.
Related: 4 countries that let you buy citizenship or a golden visa with crypto
The golden visa program in Portugal, which has long been touted as the premier crypto hub of Europe, is also getting stricter. Palombo said, “Portugal is moving toward more restrictive policies, including tightening residency and citizenship eligibility.”
Whether it comes from security and money laundering concerns, particularly after the beginning of the Russia-Ukraine war, or due to the economic problems of suddenly injecting a large amount of wealthy investors into a community, gold visa options are winding down.
Why golden visa programs appeal to crypto investors
Golden visa programs can be particularly enticing for wealthy globe-trotting crypto investors as they provide the benefits of residence, and often citizenship, of a country while imposing next to no residency requirements.
In some cases, applicants are required to spend as little as five days per year in a country while still receiving the benefits of citizenship.
Furthermore, some golden visa programs have integrated crypto directly into their investment schemes. In Portugal, the Bitcoin Eco Golden Visa lets investors get exposure to Bitcoin (BTC) and local companies through an investment fund while getting the benefits of the Portuguese golden visa scheme.
El Salvador, the first country to recognize Bitcoin as legal tender, also passed a law in 2023 granting citizenship to anyone who invests $1 million in Bitcoin or Tether’s USDt (USDT).
In Italy, Bitizenship is launching a golden visa route that would allow investors to get a route to Italian residency by investing 250,000 euros in a local Bitcoin startup.
There is clearly appetite for crypto-related visa programs, particularly in countries with existing crypto-friendly regimes. Hype about a possible new crypto-related golden visa program led to a publicity nightmare earlier this month when the TON Foundation made a premature announcement of a golden visa regime it’s reportedly developing for the UAE.
The TON Foundation, the organization behind the network started by encrypted messenger Telegram, announced in early July that investors could secure a “10-year Golden Visa with a one-time $35,000 processing fee” in addition to staking $100,000 on The Open Network blockchain for three years.
The UAE’s Federal Authority for Identity, Citizenship, Customs and Port Security, the Securities and Commodities Authority and the Virtual Assets Regulatory Authority issued a joint statement denying the announcement.
TON later clarified that the announcement was premature and that it was working independently with a “licensed partner” to develop the scheme, with final approval ultimately resting with UAE regulators.
Options for investment may be expanding within existing golden visa regimes, like the Bitcoin Eco Golden Visa in Portugal or the crypto startup option in Italy. However, overall, the trend is moving toward fewer and stricter regulations around such visa schemes. Since 2020, at least nine countries have scrapped their golden visa programs: the UK, Ireland, the Netherlands, Spain, Bulgaria, Cyprus, Montenegro, Moldova and Malta.
Palombo said, “What’s possible today may become legally impossible within months or weeks. This pattern is accelerating. Golden visas, once abundant, are fast becoming scarce.”
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