In 1998, Benjamin Trotter, during his valedictorian speech at a Tennessee high school, expressed his identity as a global citizen. However, over the years, he began feeling increasingly disconnected from his own country due to societal divisions. Seeking a place where his rights as a member of the LGBTQ+ community would be secure, he turned his attention to Europe.
The opportunity to become a resident of another country, though, came with a hefty price tag: €350,000 ($377,000). This sum is at the lower end of what is known as a “golden visa,” a document granting residency to investors making significant economic contributions to a country. For Mr. Trotter, this investment would secure residency in Portugal, providing access to the entire European Union and potentially one of the world’s most widely accepted passports.
However, the landscape for such residency-by-investment programs across Europe is shifting. Initially established to attract foreign capital following the 2008 financial crisis, these programs are now facing scrutiny and regulation. Spain recently joined Portugal, Ireland, Bulgaria, Latvia, and the United Kingdom in discontinuing its golden visa program for real estate, citing concerns about affordable housing and national security risks associated with selling residence permits.
This policy shift highlights broader questions about the regulation of globalization’s future in Europe. While some argue that European values should not be commodified, others suggest that economic incentives for investment remain significant.
Golden visa schemes, which emerged in the 1980s and gained popularity in Europe in the early 2010s, have attracted investors primarily from non-Western countries. Despite concerns about security and potential abuse of the programs, some EU member states, like Hungary, are relaunching their golden visa initiatives.
Moreover, the surge in foreign investment through these programs has sparked debates about the local impact on housing markets. In Spain, where a significant portion of real estate transactions involve foreign investors, the government aims to balance investment incentives with housing affordability concerns.
While Portugal also ended its real estate golden visa program, alternative investment options remain available, emphasizing sectors such as sustainable agriculture and scientific research. Advocates argue that such programs contribute to a country’s progress and development.
However, the accessibility of these programs remains limited to those with substantial financial means, prompting discussions about privilege and global mobility. Benjamin Trotter, awaiting his golden visa approval, reflects on the opportunities and responsibilities that come with choosing one’s place in the world.