In recent years, countries around the world have increasingly turned to golden visa programs to attract foreign investment and talent. These initiatives offer residency to individuals who make significant financial investments in the host country and eventually, in some countries, this could lead to obtaining citizenship. While European nations have traditionally dominated this space, Southeast Asian countries have also ventured into the realm of golden visas.
Let’s dive into current initiatives by these Southeast Asian nations and why European Golden Visas continue to be a more attractive choice to many investors.
The Evolution of Golden Visa Programs in Southeast Asia
Golden visa programs are on the rise across Southeast Asia, with many countries carefully crafting programs that will meet their socio-economic goals without placing a burden on national security.
On 25 July 2024, the Government of Indonesia introduced a long-term visa scheme on aimed at attracting foreign investors. As announced by President Joko Widodo, investors can receive a 10-year visa by investing up to $10 million, gaining access to Southeast Asia’s largest economy. The “Golden Visa” offers a five-year option for those establishing a company valued at $2.5 million, while a 10-year visa requires a $5 million investment. For individuals not setting up a company, a five-year permit requires a $350,000 investment, and a 10-year permit requires $700,000. These investments can be allocated to Indonesian government bonds, public company stocks, or deposits. Golden visa beneficiaries enjoy various privileges, including simplified visa and immigration procedures, multiple-entry mobility, extended stay periods, property ownership rights, and expedited citizenship applications
In 2022, Thailand unveiled a range of incentives to attract foreign retirees, investors, and professionals. Qualified applicants can obtain a 10-year long-term resident visa to live in Thailand with their spouses and children. Qualified applicants are eligible for the same income tax rates as Thai citizens and exemptions on income earned abroad. These incentives target affluent global citizens with a minimum income of USD 80,000 per year and assets of at least USD 1 million, as well as retirees receiving a stable pension of at least USD 40,000 annually and aged 50 or above. Highly skilled professionals earning at least USD 80,000 over two years or USD 40,000 annually in specified sectors like infrastructure or digital systems also qualify.
Introduced in 2022, Malaysia’s Premium Visa Program (PVIP) Malaysia’s Premium Visa Program (PVIP) has attracted affluent foreigners seeking investment opportunities and long-term residency in the country. Participants can reside in Malaysia for up to 20 years and are permitted to pursue education and invest in residential or commercial real estate. To qualify, applicants must deposit USD 227,180 into a licensed Malaysian bank, with no withdrawals allowed in the first year. Afterward, up to 50% of the deposit can be withdrawn for purposes such as real estate purchases, medical expenses, or education. Additionally, applicants must demonstrate offshore income of at least USD 9,086 per month or USD 109,000 annually. Alongside the financial requirements, participation fees of USD 45,434 for the principal applicant and USD 22,713 for each dependent are also applicable. All applications must be submitted through an authorized agency designated by the Immigration Department of Malaysia.
Varying levels of acceptance
These programs have had mixed receptions. Thailand’s golden visa program received 4,200 applications between September 2022 and June 2023, with the government aiming to attract 1 million foreign residents over the next five years. However, Indonesia’s stricter visa policies have raised concerns about its competitiveness in regional tourism, according to Tourism and Creative Economy Minister Sandiaga Uno.
Meanwhile, the Malaysian program is yet to gain momentum, with minimal applications prompting a government review. Reports attribute this to similarities with the Malaysia My Second Home (MM2H) program, which has significantly lower application fees. In response, the Malaysian government has decided to ease MM2H program conditions as of March 2024 to attract more applicants without compromising national security.
The Allure of Europe
The enduring appeal of European Golden Visas remains strong, with countries like Portugal, Greece, and Spain leading the way in offering attractive residency and citizenship options coveted by global investors. Additionally, newer entrants like Hungary, Latvia, and Italy have launched their own Golden Visa programs, further solidifying Europe’s position in this realm.
One of the key advantages of European Golden Visas is their access to the EU’s Schengen Area, facilitating visa-free travel across 29 European countries. This broad access makes Europe highly desirable for business, leisure, and family purposes, a feature not offered by Southeast Asian golden visa programs.
European Golden Visa programs also offer diverse investment options, including real estate, funds, government bonds, business ventures, and job creation initiatives, with entry thresholds at EUR 200,000. This flexibility enables investors to tailor their investments to their preferences and financial objectives.
Moreover, European countries boast stable political environments, well-established legal systems, and robust regulatory frameworks, providing a sense of security and reliability for investors.
Furthermore, European nations with golden visa programs often provide world-class education and healthcare systems, appealing to investors seeking to relocate with their families. These countries prioritize quality of life and social welfare, offering excellent services to residents, a feature highly valued by global citizens, including those in Southeast Asia.
While Southeast Asian golden visa programs are evolving, European golden visas currently stand out as the preferred choice due to their mature framework and longevity and the advantage to travel freely throughout Europe. Although Southeast Asian initiatives may become more competitive over time, European golden visas remain among the most sought-after programs.
