The US operates a high net worth investor visa, while Canada shut its program almost a decade ago. Last week, two European countries closed their systems, and it appears that this symbol of HNW globalization is in retreat.

The business of advising high net worth people and families on how to acquire second passports via “golden visa” citizenship/residency-by-investment programs is on the back foot after Portugal shut its system last week. The European Union state acted in the same week that Ireland closed its program. 

A year earlier, the UK closed its Tier 1 Investor Visa scheme in the wake of widespread sanctions imposed on Russia because of Moscow’s invasion of Ukraine. (Nevertheless, the UK continues to operate programs aimed at entrepreneurs of various kinds.) Other countries with these schemes include Malta – which is under European Union pressure to close it – the UAE, and select Caribbean jurisdictions. 

The US operates an EB-5 investor visa program. In 2014, Canada shut its program because of worries about the high property prices after an influx of visa holders from Hong Kong, among other places.

As reported by Reuters and other outlets, last Thursday Portugal announced a package of measures to address a house market crunch. As well as ending golden visas, it has banned new licenses for Airbnbs and other short-term holiday rentals. Such a move is controversial because Portugal has an important tourism sector. Neighbouring Spain continues to offer HNW visas.

Huriya Private, a firm advising people on the golden visa market, said in a note to clients that the potential Portuguese changes apply to new submissions, and should not affect golden visa investors who have already submitted to the program. 

Reports noted that rents and house prices have risen sharply in Portugal, which is among the poorest countries in Western Europe. (It is worth noting, however, that the country’s property market was for a while hit hard by the 2008 financial crash and the 2011 eurozone crisis.) According to Reuters, low salaries, high property prices and the dependence on tourism have squeezed out local buyers and renters – also a cause of political anger.

Reports said it was unclear when measures would kick in.

A cluster of firms, besides Huriya, advise clients about these programs, and it has become a business segment in its own right. The Investment Migration Council, with a secretariat in Geneva, was formed about a decade ago to speak on behalf of the industry. 

Last week, another firm in the space, Henley & Partners, said fewer millionaires were applying for US citizenship and the trend of US persons trying to renounce their citizenship is rising.