Source: Mercan Properties
European Parliament drafts new a legislative initiative for Golden Visa Programs
Members of the European Parliament (MEP) reunited this February 15th to discuss the future and create a new legislative initiative about citizenship and residence by investment schemes in Europe. At this point, the draft legislative initiative on Golden Visa Programs is still in an early stage. It is an initiative by a single MEP, the Dutch liberal Sophia in ‘t Veld.
The draft legislative initiative approved by the Committee on Civil Liberties, Justice and Home Affairs of the European Parliament targets specifically, the citizen acquisition through “golden passports” described as “objectionable from an ethical, legal and economic point of view” and posing “several serious security risks”, linked to tax evasion and money laundering, as happened in Bulgaria, Cyprus and Malta.
Residence permits, like the ones operated by companies like Mercan Group, are not targeted in the same way as the “golden passports”. The draft legislative initiative sets a distinction between the two regimes, calling for action against citizenship by investment visas.
Read more: Is Portugal Golden Visa still a good path for European Citizenship in 2022?
Do you want to know more about the Portugal Golden Visa Program?
Residence Permits X “Golden Passports”
In what residence permits are concerned, the Committee asks for harmonized EU rules in order to define standards and strengthen the fight against economic crimes. It recommends namely, that the investments need to add value and make a contribution to the economy, which corresponds exactly to the ones Mercan develops in Portugal.
Additionally, the actual content of the draft legislative initiative is very different from the political parties’ recent public statements in this matter. Contrary to what the left parties across Europe, and also in Portugal have been arguing, the document does not mention the abolition of the Golden Visa Programs.
The future of the Golden Visa Programs
The draft legislative initiative will be discussed in the plenary at the beginning of March (from 7th to 10th). It is expected to be approved by MEPs because it is legislation that aims to fight tax fraud and crime in the EU citizenship acquisition.
According to the European Parliament rules, even if approved, it will not automatically become law nor will force the European Commission or the European Council to advance with legislation.
The two top bodies of the European Union, with legislative and executive powers, did not make any move on supporting the initiative and have not yet pronounced on the subject.
Do you want to know more about the Portugal Golden Visa Program?
Portugal Golden Visa Program: how is it different?
In Portugal, the Golden Visa Program has been in place for ten years, providing over 10,000 residence permits to foreign investors, and granting access to citizenship after five years, unlike countries such as Cyprus, Malta and Bulgaria – which grant immediate citizenship.
From this year on, amendments have been introduced to the program, removing investment permits for residential purposes in greater urban areas like Lisbon and Porto. The changes in the law have not impacted Mercan’s activity as the investment is made in the acquisition of properties for commercial purposes, in the context of rehabilitation.
Likewise, it’s believed that the current draft legislative initiative, even if approved, which is something that, as mentioned above, is quite far from happening, will not have an impact on Mercan‘s current operations, namely in what is related to the residency permit under the current Portuguese program.
How to invest in the Portugal Golden Visa Program?
If you are interested in real estate rehabilitation projects to invest in, Mercan Group has excellent options available and some to come in the hospitality sector in the €350k and €280k categories. All Mercan Group projects qualify for the Portugal Golden Visa program and can lead to citizenship in Portugal.