The Difference Between Golden Visa and Traditional Residency

Golden visa programs are the path to residency and passport in Europe, but let’s clarify their difference with traditional residency programs.

Entering Europe with a Golden Visa and traditional residency programs allows individuals to travel within Europe without a visa, reside in desirable locations, establish businesses in countries with strong economies, and obtain citizenship in the future.

About Golden Visa and Regular Residency Programs

Some may hear the term Golden Visa here and there, which means the possibility of obtaining residency from another place after investing in it, and residency by investment is the second term for it, but it should not be confused with golden passport programs that offer citizenship by investment.

In 1984, citizenship by investment programs began to appear through the St. Kitts and Nevis Citizenship Program, at that time many European countries already offered Golden Visa and Regular Residency programs, however, the countries offering Golden Visa programs have greatly decreased and are now narrowly located on Spain, Portugal, Greece and Malta.

· Required length of stay

This point is the pivotal difference between the two programs, as you need a very short stay to maintain the Golden Visa program, specifically a week or two a year, while traditional residency programs require a stay of 6 to 8 continuous months.

From this we understand that the Golden Visa program is an option for businessmen and investors who want to diversify their investments, properties and businesses in more than one place and those who are looking for alternative plans and who do not think about moving to a country immediately to maintain their current lifestyle. Other residency programs are for those who want to live and settle in a new country.

· Financial requirements and obligations

Another difference is the amount of investment required and the long-term commitment. On the one hand, the Golden Visa requirements are higher than the requirements of the regular residency program, but the traditional residency programs require proof of regular income, unlike the Golden Visa program which requires only one investment at the beginning.

To obtain the Golden Visa, you must invest either in real estate or make a financial contribution to the countries that offer these programs or by purchasing investment funds and stocks.

✓ The Path to Permanent Residency and European Citizenship

While both programs claim to lead to European permanent residency and eventually European citizenship, regular residency programs are less clear, the requirements are often more complex, and the timeframe is longer than advertised. However, Golden Visa programs offer permanent residency and citizenship within a pre-determined timeframe that cannot be extended.
The latter takes about 5 years after first applying to a Golden Visa program, but only if certain other requirements are met, such as knowing the country’s language at least at an intermediate level and maintaining the investment until citizenship is obtained.

Examples of Traditional Residency Programs

· Portuguese Passive Income D7 Residency

To obtain a Passive Income Residency in Portugal, you must not travel outside Portugal for 6 consecutive months or 8 intermittent months in order to maintain your program, and therefore you cannot move to reside in another European country. In addition, the user must prove that he has a regular passive income and fixed assets.

Examples of Golden Visa Programs

· Portuguese Golden Visa

Portugal offers a Golden Visa program for families who are considering strengthening their presence in Europe and benefiting from Portuguese educational, health and cultural opportunities.

To obtain Portuguese residency, you must invest around €500,000 in non-real estate funds or make contributions to the arts and education in Portugal. Note that Portugal only requires its investors to stay for 7 days per year.

· Spanish Golden Visa

To qualify for Spanish residency, you must invest €500,000 in Spanish real estate and wait until the end of the Golden Visa program to resell the property or after obtaining Spanish citizenship. With Spanish residency you can establish projects and companies in Spain and the European Union.

· Greek Golden Visa

The Greek residency program is considered one of the most suitable European residency programs through investment, as investing in Greek real estate in the amount of 250 thousand euros qualifies you to obtain the Greek Golden Visa, but the Greek government is seriously considering raising investment prices. With this program you can reside not only in Greece but in all European Union countries at once.

Who suitable for Golden Visa and Regular Residency programs?

Regular residency programs are suitable for people who have a regular passive income and want to spend most of their time in one place and do not want to make a large investment immediately, while Golden Visa programs are suitable for people who are looking for alternative plans for their future and want to maintain their residency in another place and are willing to make a one-time investment at the beginning.

Which should I choose, Golden Visa or Regular Residency?

Both programs provide the opportunity to reside, live and establish a business in Europe, but it depends on the preferences of investors regarding the most suitable option for them. We have shown how the Golden Visa program has lower residency requirements and is suitable for those looking to diversify their business and residency rather than living and setting up a business in one place. Also, how you need to make a large investment initially with the Golden Visa programs and you need to prove a steady income with the rest of the residency programs. We have also shown the importance of the two programs in terms of obtaining citizenship and how the Golden Visa programs are clearer and faster to obtain a European passport.

You decide which program you need: Golden Visa programs, traditional residency or citizenship by investment programs. Still confused? Why not contact the citizenship experts Global Citizen Consultants to narrow down the picture for you to make the right decision and then apply for the program from our side as we are an accredited company for residency and citizenship programs around the world.