Starting January 2024, the Netherlands has announced the discontinuation of its Golden Visa program, signalling a shift in its residency and investment policies. This program, which previously granted residency to investors, will no longer be available, prompting prospective participants to explore alternative avenues for residence in the country.

Decade-Long Program Criticised for Wealthy Investors

The decade-long EB-5 program, which allows wealthy foreigners to invest in the U.S. in exchange for green cards, has been criticised for failing to create jobs as advertised and for primarily benefiting wealthy investors.

The program was created in 1990 to stimulate the U.S. economy by attracting foreign investment and creating jobs. However, a 2019 report found that the program had created only 40,000 jobs in the previous five years, far below the 600,000 jobs that had been projected.

The report also found that the program had primarily benefited wealthy investors, with 90% of EB-5 visasgoing to investors from China, Vietnam, and South Korea. These investors typically invest in real estate projects in urban areas, which has led to gentrification and displacement of low-income residents.

However, critics of the increase argued that it would make the program even more inaccessible to low- and middle-income investors. They also argued that the increase would disproportionately harm rural areas, where the minimum investment amount is already too high for many investors.

The EB-5 program is set to expire in June 2023, but Congress is considering reauthorizing the program. It is important to note that there are a number of different proposals for reauthorizing the program, and it is unclear which proposal, if any, will be passed into law.

Strong Dutch Economy Ends Program Need

The government has ended its COVID-19 support package for jobs and the economy, effective October 1, 2023. This decision was made in light of the strong Dutch economy, which is expected to grow by 3.8% in 2021 and 3.2% in 2022.

Here is a more detailed explanation of the different measures that were included in the government's support package:

• Emergency Measure for the Preservation of Jobs (NOW): This measure provided subsidies to businesses to help them cover the costs of wages and salaries.

• Reimbursement of Fixed Costs (TVL): This measure reimbursed businesses for certain fixed costs, such as rent and utilities.

• Temporary Emergency Measure for Self-employed Persons (Tozo): This measure provided financial support to self-employed people who had lost income due to the pandemic.

• Temporary Support for Essential Costs (TONK): This measure provided financial support to businesses and individuals to help them cover essential costs, such as food and housing.

• Various tax measures: The government also introduced a number of tax measures to help businesses and individuals stay afloat during the pandemic. For example, the government reduced the value-added tax (VAT) rate on certain goods and services.

Impact on Similar European Programs Expected

The decision by the government to end its COVID-19 support package for jobs and the economy is expected to have a significant impact on similar programs in other European countries.

Here are some specific examples of how the end of the Dutch support package could impact similar programs in other European countries:

• Germany: The government has already announced that it will be reducing its support packages in 2023. The government has said that it will focus on helping businesses to invest and grow, rather than providing direct subsidies.

• France: The government has said that it will be extending its support packages until the end of 2023. However, the government has also said that it will be reducing the size of the packages in the coming months.

• Italy: The government has not yet made a decision on whether or not to extend its support packages. However, the government is under pressure from the European Commission to reduce its budget deficit. This suggests that the government is likely to end its support packages in the near future.

Governments Grow Cautious of Golden Visas

Governments around the world are growing cautious of golden visa programs, which offer citizenship or residency to wealthy foreigners in exchange for investment. These programs have been criticised for a number of reasons, including:

• Lack of transparency and accountability: Golden visa programs are often opaque and lack accountability mechanisms. This makes it difficult to track where the investment money is going and to ensure that the programs are achieving their stated goals.

• Corruption: Golden visa programs have been linked to corruption, as wealthy investors may be able to use the programs to obtain citizenship or residency even if they do not meet all of the requirements.

• Money laundering: Golden visa programs have also been linked to money laundering, as criminals may use the programs to legitimise their ill-gotten gains.

• Impact on housing markets: Golden visa programs can drive up housing prices in urban areas, making it difficult for locals to afford to live in their own cities.

• Impact on labour markets: Golden visa programs can also lead to a shortage of skilled workers, as wealthy investors may be able to bring in their own workers from other countries.

FAQS

Is the Netherlands completely ending its Golden Visa program in January 2024?

Yes, starting January 2024, the Netherlands will discontinue its Golden Visa program, which previously provided a pathway to residency through investment.

Why is the Netherlands discontinuing the Golden Visa program?

The specific reasons for discontinuing the Golden Visa program are not explicitly mentioned. Changes in government policies, economic considerations, or a shift in immigration strategies could be contributing factors.

Can I still apply for the Golden Visa before the program ends in January 2024?

The availability of the Golden Visa program for new applications will depend on the policies in place leading up to January 2024. Prospective applicants are advised to check with official sources for the most accurate information on the program's status.

What alternatives are available for residency or investment in the Netherlands after January 2024?

Individuals interested in residency or investment in the Netherlands post-January 2024 may explore other visa options, such as the investor visa or entrepreneur visa. It is recommended to consult with immigration authorities for updated information on available programs.

Will existing Golden Visa holders be affected by the program's discontinuation?

Existing Golden Visa holders are typically not affected by program changes. However, it is advisable to review the terms of their residency status and seek guidance from immigration authorities to ensure compliance with any transitional measures.

Can I transfer my Golden Visa application to another country if the program is ending?

The transferability of a Golden Visa application to another country depends on the policies of the respective countries involved. It is advisable to inquire with the immigration authorities of the desired destination for guidance on such matters.

How can I stay informed about changes in immigration policies post-January 2024?

Stay updated by regularly checking official announcements from immigration authorities, embassy websites, or consulting legal professionals specialising in immigration law for the latest information on changes in residency and investment policies.