Golden Visa or Not? When Renting with a Nomad Visa Might Make More Sense

Reading time: 15 minutes

Table of Contents

• Introduction
• Understanding Golden Visas
• The Rise of Nomad Visas
• Comparing Golden Visas and Nomad Visas
• Economic Implications of Visa Choices
• Real Estate Market Dynamics
• Case Studies: Success Stories and Cautionary Tales
• Future Trends in Global Mobility
• Conclusion
• FAQs

Introduction

In an era of increasing global mobility, individuals and families are constantly seeking new opportunities to live, work, and invest across borders. Two popular options that have emerged in recent years are Golden Visas and Nomad Visas. While both offer pathways to residency in foreign countries, they cater to different needs and come with distinct economic implications. This comprehensive analysis will delve into the nuances of these visa programs, exploring when renting with a Nomad Visa might be a more prudent choice than investing in a Golden Visa program.

Understanding Golden Visas

Golden Visa programs have gained significant traction over the past decade, offering residency rights to individuals who make substantial investments in a country’s economy, often through real estate purchases. These programs are particularly attractive to high-net-worth individuals looking for a second home, a potential path to citizenship, or a safe haven for their assets.

Key Features of Golden Visa Programs

• Significant investment requirement, typically in real estate or government bonds
• Residency rights for the investor and their family
• Potential path to citizenship after a specified period
• Access to education and healthcare systems
• Visa-free travel within the Schengen Area (for EU programs)

While Golden Visas offer numerous benefits, they also come with substantial financial commitments. For instance, buying real estate in greece for a Golden Visa requires a minimum investment of €250,000, which is a significant sum for many potential investors.

The Rise of Nomad Visas

In contrast to Golden Visas, Nomad Visas are a more recent development, catering to the growing community of digital nomads and remote workers. These visas allow individuals to live and work in a foreign country for an extended period without the need for substantial investment.

Characteristics of Nomad Visas

• Lower financial barriers to entry compared to Golden Visas
• Flexibility to work remotely for foreign companies
• Typically valid for 6-12 months, with options for renewal
• Access to local amenities and services
• Opportunity to experience local culture without long-term commitment

Nomad Visas have gained popularity in countries like Estonia, Portugal, and Thailand, offering an attractive alternative for those seeking international experience without the hefty price tag of Golden Visa programs.

Comparing Golden Visas and Nomad Visas

When deciding between a Golden Visa and a Nomad Visa, several factors come into play. Let’s break down the key differences:

Economic Implications of Visa Choices

The choice between a Golden Visa and a Nomad Visa has significant economic implications, both for the individual and the host country. Let’s examine these impacts in detail.

Individual Economic Considerations

For individuals, the economic calculus of choosing between these visa options is complex. Golden Visas require a substantial upfront investment, often in real estate, which ties up capital in a potentially illiquid asset. This can be a double-edged sword: while it may appreciate in value over time, it also exposes the investor to market risks and potential property bubbles.

On the other hand, Nomad Visas offer greater financial flexibility. Without the need for a large property investment, individuals can allocate their resources more diversely, potentially investing in their own businesses or global stock markets. The lower entry cost also means that Nomad Visas are accessible to a broader range of professionals, not just high-net-worth individuals.

Macroeconomic Impact on Host Countries

From a macroeconomic perspective, Golden Visa programs can provide a significant boost to a country’s real estate sector and overall economy. They bring in foreign direct investment, stimulate the construction industry, and can lead to increased tax revenues. However, they also risk inflating property prices, potentially pricing out local residents from prime real estate markets.

Nomad Visa programs, while not generating the same level of direct investment, can still contribute significantly to local economies. Digital nomads and remote workers often spend money on local goods and services, supporting small businesses and the service sector. They can also bring valuable skills and international connections, potentially fostering innovation and entrepreneurship in their host countries.

Real Estate Market Dynamics

The interplay between Golden Visas, Nomad Visas, and real estate markets is particularly fascinating. Golden Visa programs have been a major driver of property prices in cities like Lisbon, Athens, and Barcelona. This has led to concerns about housing affordability for local residents and the potential for property bubbles.

Golden Visas and Property Market Inflation

Data from the European Central Bank shows that countries with popular Golden Visa programs have experienced above-average property price growth. For example, Portugal saw a 37% increase in housing prices between 2015 and 2020, significantly outpacing the EU average of 26%.

Nomad Visas and Rental Markets

The rise of Nomad Visas has had a different effect on real estate markets. Instead of driving up property prices, they have primarily impacted rental markets, especially in digital nomad hotspots. Cities like Chiang Mai in Thailand and Medellín in Colombia have seen increased demand for short to medium-term rentals, leading to the development of co-living spaces and serviced apartments catering to this demographic.

Case Studies: Success Stories and Cautionary Tales

To illustrate the real-world implications of these visa choices, let’s examine a few case studies:

Golden Visa Success: The Portuguese Dream

Maria, a Brazilian entrepreneur, invested €500,000 in a Lisbon apartment through Portugal’s Golden Visa program in 2015. By 2021, her property had appreciated by 45%, and she was on track for Portuguese citizenship. However, she faced challenges with property management and navigating local tax laws.

Nomad Visa Flexibility: A Digital Marketer’s Journey

Alex, a Canadian digital marketer, used Estonia’s e-Residency and Nomad Visa programs to live and work across Europe for three years. He rented apartments in Tallinn, Lisbon, and Split, spending approximately €15,000 per year on accommodation. This flexibility allowed him to experience different cultures and expand his client base across Europe.

Golden Visa Caution: Greek Property Woes

A Chinese investor purchased a €250,000 property in Athens for a Golden Visa in 2018. While he secured residency, he struggled to find tenants for his property and faced unexpected maintenance costs. The COVID-19 pandemic further impacted the short-term rental market, leaving him with a underperforming asset.

Future Trends in Global Mobility

As we look to the future, several trends are likely to shape the landscape of global mobility and visa programs:

1. Increased Scrutiny of Golden Visas: The EU and other jurisdictions are likely to implement stricter regulations on Golden Visa programs to prevent money laundering and ensure genuine economic contributions.
2. Expansion of Nomad Visa Programs: More countries are expected to introduce Nomad Visa options to attract skilled professionals and diversify their economies.
3. Integration of AI and Blockchain: These technologies could streamline visa application processes and enhance security measures for both Golden and Nomad Visas.
4. Focus on Sustainability: Future visa programs may incorporate sustainability criteria, such as investments in green technology or eco-friendly properties.
5. Hybrid Models: We may see the emergence of hybrid visa programs that combine elements of both Golden and Nomad Visas, offering more flexible investment options and residency terms.

Conclusion

The choice between a Golden Visa and a Nomad Visa ultimately depends on individual circumstances, financial resources, and long-term goals. While Golden Visas offer a path to permanent residency and potential citizenship, they come with significant financial commitments and market risks. Nomad Visas, on the other hand, provide flexibility and lower entry costs, making them an attractive option for digital professionals seeking international experience without long-term commitments.

As global mobility continues to evolve, it’s crucial for individuals to carefully assess their options, considering not only the immediate benefits but also the long-term economic implications of their visa choices. For many, the flexibility and lower financial barriers of Nomad Visas may indeed make more sense, especially in an increasingly digital and uncertain world.

Ultimately, the decision should align with one’s personal and professional goals, risk tolerance, and desired lifestyle. As the global landscape of work and residency continues to shift, staying informed about these options will be key to making the most of international opportunities.

FAQs

1. Q: Can I switch from a Nomad Visa to a Golden Visa program?

   A: While it’s possible to transition from a Nomad Visa to a Golden Visa program, the process varies by country. You would need to meet the investment requirements and go through the application process for the Golden Visa. Some countries may view your previous residency favorably, but it’s not guaranteed to simplify the process.

2. Q: Are there tax implications to consider when choosing between Golden and Nomad Visas?

   A: Yes, tax implications can be significant. Golden Visa holders may become tax residents in their new country, potentially affecting their global tax obligations. Nomad Visa holders often maintain tax residency in their home country but should be aware of potential double taxation issues. It’s crucial to consult with a tax professional familiar with international tax laws.

3. Q: How do Golden and Nomad Visas affect my ability to travel to other countries?

   A: Golden Visas, especially those from EU countries, often provide visa-free travel within the Schengen Area. Nomad Visas typically don’t offer additional travel benefits beyond the host country. Your primary passport will still determine your global travel rights in most cases.

4. Q: Can family members join me on a Nomad Visa?

   A: This varies by country. Some Nomad Visa programs allow you to bring family members, while others are designed for individuals. Golden Visa programs generally include provisions for family members. Always check the specific rules of the program you’re interested in.

5. Q: What happens if I lose my job while on a Nomad Visa?

   A: The implications of job loss vary by country. Some Nomad Visa programs require you to maintain a certain income level or employment status. Others may offer a grace period to find new work. It’s important to understand these conditions before applying and to have a financial safety net in place.

Article reviewed by Annice Schmeler, Head of Investment Properties | Commercial Real Estate Strategist | Delivering 20%+ Annual ROI for Clients, on March 19, 2025