Portugal is attracting entrepreneurs and business owners through its D2 Visa, making European residency programs more accessible.
By Varun Singh
In an era of global mobility and economic interconnectedness, the concept of residency-by-investment programs, colloquially known as ‘Golden Visas’, has gained significant traction. Traditionally associated with high-net-worth individuals and seasoned investors, these programs have long been the domain of those able to invest millions in foreign real estate or government bonds.
However, a seismic shift is occurring in the landscape of European residency options, with countries like Latvia and Portugal pioneering more accessible pathways for entrepreneurs and smaller-scale investors.
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The concept of Golden Visas has been a fixture in European immigration policy for over a decade, with countries like Portugal and Spain leading the charge. These programs typically required substantial investments, often in the realm of €500,000 to €2 million, primarily in real estate. According to a report by the European Parliament, between 2011 and 2019, over 132,000 individuals acquired residency or citizenship in EU countries through investment schemes, generating an estimated €21.4 billion in foreign direct investment.
Latvia’s Investor Residency Program
Latvia’s Investor Residency Program represents a paradigm shift in the realm of investment migration. With an entry point of just €50,000, it stands as one of the most affordable routes to EU residency. This program is specifically tailored to attract entrepreneurs and startups, aligning with Latvia’s vision of becoming a hub for innovation in the Baltic region.
Investment Amount: A minimum investment of €50,000 in the share capital of Latvian companies.
Government Fee: A one-time payment of €10,000 to the Latvian government.
Process: Investors sign an agreement with a Latvian company and transfer the investment via bank transfer.
Residency Benefits: The permit grants rights to work, reside, and travel freely within the Schengen Area.
Family Inclusion: The residency permit extends to family members, including spouses and dependent children.
Duration: The initial permit is valid for 5 years, with the possibility of renewal.
The impact of this program is already being felt. In 2022, Latvia saw a 27% increase in foreign direct investment compared to the previous year, with a significant portion attributed to the new residency scheme. The Latvian Investment and Development Agency (LIAA) reports that over 200 new startups have been established by foreign entrepreneurs since the program’s inception, contributing an estimated €100 million to the Latvian economy.
Portugal’s D2 Visa
While Portugal has moved away from its traditional Golden Visa program, the country has doubled down on attracting entrepreneurs and business owners through its D2 Visa. This program offers a compelling alternative for those seeking EU residency through business investment and entrepreneurship.
Investment Amount: While there’s no fixed minimum, investments typically start around €250,000.
Business Plan: Applicants must present a viable business plan for a new or existing Portuguese company.
Job Creation: The business should demonstrate potential for job creation in Portugal.
Residency Benefits: The D2 Visa provides a path to permanent residency and citizenship after 5 years.
Tax Benefits: Portugal’s Non-Habitual Resident (NHR) tax regime offers significant tax advantages for new residents.
The D2 Visa program has been a catalyst for Portugal’s burgeoning startup ecosystem. According to Startup Portugal, the country saw a 26% increase in the number of new startups in 2022, with foreign entrepreneurs accounting for nearly 20% of founders. Notable success stories include Unbabel, an AI-powered translation platform that raised $60 million in Series C funding, and Feedzai, a fintech company valued at over $1 billion.
The Current Landscape of Investment Migration
The global market for investment migration is estimated to be worth over $21 billion annually, with projections suggesting growth to $100 billion by 2025 (Investment Migration Insider, 2023). Experts predict that by 2030, up to 25% of high-net-worth individuals will hold a second passport or residency permit, driven by these evolving programs (Knight Frank Wealth Report, 2023).
Conclusion
The emergence of affordable Golden Visa alternatives in countries like Latvia and Portugal marks a significant evolution in the realm of investment migration. These programs are democratising access to EU residency, opening doors for entrepreneurs and smaller-scale investors who were previously priced out of traditional Golden Visa schemes. With investments starting as low as €50,000, these new pathways are fostering innovation, job creation, and economic diversification across Europe.
As the global landscape of mobility continues to shift, driven by factors such as remote work, climate change, and geopolitical uncertainties, the demand for flexible residency options is likely to grow. Countries that offer accessible, entrepreneur-friendly programs stand to benefit from an influx of talent, capital, and ideas. For prospective investors and entrepreneurs, these evolving residency schemes present unprecedented opportunities to establish a foothold in the European market, enjoy the benefits of EU residency, and potentially pave the way to citizenship.
(Author is MD, XIPHIAS Immigration)
