One common question when exploring European Golden Visas or Permanent Residency Programs is, “Will I eventually be granted citizenship?”
European Union (EU) citizenship can offer numerous benefits, including the right to live, work, study, and start a business in any EU country, similar to other EU nationals. It also allows you to pass on your status to future generations, purchase property, vote, and travel visa-free within certain countries. Additionally, citizenship enables you to obtain an EU passport.
In this article, we will outline the practical steps and options available for acquiring these rights over time.
What is the “Illusion of a Golden Visa” and Why is it important to understand this concept?
Often, there is a belief or assumption that investing in property and spending a few weeks a year in a country will automatically lead to citizenship approval.
However, in reality, most Golden Visas are temporary and require renewal every five years. Additionally, many programmes require children to reapply for their status once they reach adulthood and become independent. Articles suggesting otherwise are frequently authored by those who benefit from perpetuating this misunderstanding.
Typically, becoming naturalized in a country requires a decade or more of physical presence, and even then, citizenship is not guaranteed. Some promoters might suggest that you can bypass Long-Term and Permanent Residency stages to directly obtain citizenship, but such a "free upgrade" to EU citizenship is highly unlikely.
In essence, many European countries have provisions in their legislation that allow a person to apply for permanent residency and be naturalised, i.e. become a citizen, after several years. While the conditions vary from country to country, these usually include several strong links such as:
- Being a fit and proper person
- Being able to sustain yourself and your family
- Being legally, continuously and physically present in the country for several years.
In Europe, the minimum requirement for obtaining citizenship commonly varies by country, but it is generally at least five years.
Therefore, an individual who has not physically resided in the country for several years is unlikely to be eligible to apply for permanent residency, let alone citizenship.
So, let us assume that one meets the required conditions and now has the right to apply. Here is the catch: The right to apply does not guarantee the obligation of the state to accept the application.
How does a Golden Visa lead to EU Citizenship?
Golden Visas offer wealthy individuals a pathway to EU citizenship by investing in property or businesses within member states. In exchange for their investment, they receive residency rights that can potentially lead to citizenship.
Notable, Golden Visa holders enjoy all the benefits of EU citizenship, including freedom of movement and travel, access to healthcare and education, and the right to live and work in any member state. However, Golden Visas come at a cost.
Take the case of Malta. Malta promotes clear-path citizenship by investment through the Malta Citizenship by Naturalisation for Exceptional Services by Direct Investment. The programme provides investors with two routes:
- Apply for citizenship after one year of residency status in Malta with a non-refundable investment of €750,000 to the National Development and Social Fund set up by the Government of Malta.
- After three years, apply for Maltese citizenship with a lower non-refundable investment of €600,000.
The main applicant must allot €50,000 per family member in the application. Moreover, you must donate €10,000 to any non-governmental organisation registered in Malta and lease a residential property for a minimum annual rent of €16,000.
Alternatively, you may purchase a residential property in Malta with a minimum value of €700,000 and hold it for at least five years from the date of the certificate of naturalisation.
Administrative and due diligence fees will be applicable, depending on family composition. Regardless of the applicant’s choice, the lifetime benefits will remain the same.
There is already a legal provision to allow third-country nationals to avail themselves of citizenship benefits like those enjoyed by other European citizens without forking a million euros.
The answer lies in EU Council Directive 2003/109/E, also known as The Long-Term Residents Directive. Barring three countries, the rest of the 25 European Union countries are all signatories to this directive. The cost? Almost zero.
Once you have been legally and physically resident for four years and two months over five years and fulfil some other essential criteria, your right is to receive Long-Term Residency status. Moreover, the country is under an obligation to process it.
The benefits of this legislation are significant since it grants rights typically attributable to nationals. These include freedom of employment or self-employment, education and access to social services across 25 European Union states. If you stay within that country for even longer, one is more likely to receive citizenship and the country’s passport.
In conclusion, Golden Visas have become increasingly popular as they offer European citizenship paths. In addition, Golden Visas provide many benefits. However, Golden Visas also come at a cost, such as high investment requirements and strict eligibility criteria.
Overall, Golden Visas are a viable option for those seeking to live and work in Europe. However, the application process and acquisition of Golden Visas can present challenges. It is crucial to consult with immigration specialists who can help navigate the complexities and make your dream of becoming a European citizen a reality.
