UK nationals are facing serious limitations to the time they can spend in the European Union now that Britain has left the EU.
With Brexit fully in force, the rules about how long people can stay in any of the 27 member states have changed dramatically.
At the moment, Brits are only allowed to spend 90 days in any given 180-day period in the EU. After that, they will require visas, other travel permits or be forced to go back to the UK.
This is something that has become challenging for those who own a second home in the EU.
But can golden visas help retirees and second home owners overcome these obstacles?
International Adviser spoke with industry players to understand what options could suit Brits looking to spend more than just three months in the bloc.
Golden visas
Jason Porter, director at Blevins Franks, said that golden visas can offer an alternative to the restrictions, but there is, indeed, a catch, “as the freedom only exists between the UK and the EU member state you are applying to”.
“Whilst it is often quoted a golden visa offers freedom of movement across the EU, it is only in respect of visa-free travel, which UK citizens benefit from anyway. A UK citizen in possession of a golden visa will still be restricted to 90 days out of any 180, when it comes to the rest of the Schengen Zone.”
Despite this, Porter added that there are additional benefits to a golden visa such as “the ability to include other family members in the application, the ability to vary your activities including working, studying and exploiting entrepreneurial opportunities without having to change your visa, and potentially access to a permanent residency and citizenship”.
Rising interest
Both Stuart Wakeling, head of London office at Henley & Partners, and John Hanafin, chief executive of Huriya Private, said there has been an increasing number of applications for golden visas from UK nationals.
Hanafin said: “Since the British became non-Europeans in January this year, EU golden visa programmes have officially allowed British citizens to start applying. In fact, the biggest uplift in both Portugal and Greek programmes have been British and Americans.”
Wakeling added: “Henley & Partners has seen a nearly 60% increase in enquiries relating to investment migration programme options from UK nationals since 2019.”
But he said the growing number of enquiries are not only limited to the EU immigration rules. For many golden visas are also part of their retirement plans.
“Where you live impacts on many important aspects that become even more essential as you age, such as how often you can connect with family and friends, how easily you can access good healthcare, how healthy the environment is, and what the climate is like, to name just a few.
“In times gone by, for obvious reasons, many Brits have been drawn to retire in EU countries such as Spain and France, but Brexit has put a spanner in the works, and made it far less straightforward to take up these traditional options.
“Residence- and citizenship-by-investment programmes — widely known as ‘golden visa’ programmes — provide an alternative solution for Brits wanting to secure permanent residence and/or citizenship of a range of European countries post-Brexit.”
Residence vs citizenship
If unsure, residence schemes can give almost as many rights as citizenship schemes, with the vast majority also offering a path to acquiring a passport down the line.
Wakeling added: “Residence-by-investment programmes can give you the right to live, work, study and receive healthcare in your country of choice, as well as the option to permanently relocate there should you wish.
“Most also include the possibility of acquiring citizenship after a period of residence.
“According to our stats, the top five residence-by-investment programmes enquired about by Brits over the past year are all in Europe, with Portugal being by far the most popular, followed by Austria and Greece, and then Italy.
“Both Portugal and Greece have real estate-linked investment options.”
Easy process
Arthur Sarkisian, managing director of Astons, said golden visas have been proving very popular as the application process is quite quick and “straightforward”.
“Many British expats now face tougher restrictions with regard to the time spent living within the EU. This will most certainly require a period of adjustment although the route of citizenship or residency via investment could provide a far easier path to life outside of the UK.
“For example; the most popular expat destinations, such as France, Germany, Portugal and Spain, all offer residency via investment with processing times of just two months or less.
“This is an extremely streamlined process that would allow applicants a quick route to obtaining residency and overcoming the potential issues posed by Brexit.
“Residency via investment within these expat destinations would provide the applicant with visa-free travel throughout the EU, as well as the ability to easily apply for a Schengen Zone visa.
“In most cases, permanent residency can be secured after three to five years of investing and, for those with a longer-term view, many offer the opportunity of citizenship further down the line.
“Many nations also offer the opportunity to secure residency via residential real estate investment, which may well be preferable for those starting a new life on foreign soil.
“These nations also offer a relatively low cost when investing, with France requiring a minimum investment of €300,000, climbing to around €350,000 in Portugal or Germany, and €500,000 (£430,000, $600,000) in Spain.”
Do your homework
While golden visas sound appealing, they should not be entered into lightly.
Making sure they are the right choice is vital, as recently IA reported that getting applications wrong could cost retirees as much as €40,000 in lost fees.
This is because Brits now need to provide much more documentation, as well as factor in any delays in the foreign immigration systems or in securing the right documents, which could lead to multiple applications and much higher costs.
Additionally, depending on the country of choice, there may be requirements to have documentation translated to the local language and hire an immigration specialist.
Not only that, but now most European countries require UK citizens to have private medical insurance and demonstrate they have sufficient income to support themselves and/or their family while staying there.
Astons’ Sarkisian added: “Each path to residency will come with varying requirements; and, so for those considering a move away from the UK, it’s important to research which investment is most suitable for your own individual circumstances.”
