The video explores the phenomenon of the 'Golden Visa' in Europe, with a spotlight on Portugal as a favored destination. It discusses how Geopolitical uncertainties and political Instability are driving people, especially from the United States, to seek second citizenships as a form of security. The Golden Visa program, which gained popularity during the European debt crisis, allows affluent individuals to effectively "purchase" citizenship through significant financial investments, primarily in real estate.

In Portugal, the Influx of foreign investors and their preference for Golden Visas have sparked local repercussions, such as real estate booms and housing crises, alongside concerns over the socio-economic contributions of these visa holders. There is significant local Discontent and criticism revolving around the perceived shallowness of the program. Additionally, external pressures from the EU have urged the modification or conclusion of such programs due to fears of money laundering and unintended Geopolitical consequences.

Main takeaways from the video:

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Key Vocabularies and Common Phrases:

1. Geopolitical [ˌdʒiːoʊpəˈlɪtɪkl] - (adj.) - Relating to politics, especially international relations, as influenced by geographical factors.

In these times of Geopolitical uncertainty, a second citizenship might be the greatest get of them all.

2. Instability [ˌɪnstəˈbɪlɪti] - (n.) - The tendency for a system or structure to change or fail.

Political Instability has made people consider a plan B.

3. Entitlement [ɪnˈtaɪtlmənt] - (n.) - The right to have or do something; possessing certain benefits because of a specific status or category.

The golden visa allows those with means to essentially buy a second passport.

4. Influx [ˈɪnflʌks] - (n.) - An arrival or entry of large numbers of people or things.

One country in particular has seen a large Influx of applicants, especially from the United States.

5. Discontent [ˌdɪskənˈtɛnt] - (n.) - Dissatisfaction with one's circumstances.

Local Discontent for visa holders, with foreigners coming in, being not quite price sensitive.

6. Collateralized [kəˈlætərəˌlaɪzd] - (adj.) - Secured by property or another asset for the purposes of a loan.

Our investors have the security of a Collateralized energy contract for the duration of their time in the program.

7. Align [əˈlaɪn] - (v.) - To place or arrange things in a straight line, or to be in agreement or cooperation.

To Align their efforts with local aspirations of sustainable development, Tejo has teamed up with Portuguese firm Cleanwatts.

8. Strategic [strəˈtiːdʒɪk] - (adj.) - Carefully designed or planned to serve a particular purpose or advantage.

What the government now is doing, by suddenly changing the rules, is trying to spill over some of this money into Strategic Sectors of the economy.

9. Revenue [ˈrevəˌnuː] - (n.) - Income, especially when of a company or organization, and of a substantial nature.

The tourism sector accounts for about 25 billion in Revenue per year.

10. Sectors [ˈsɛktərz] - (n.) - Distinct parts or branches of a nation’s economy or society.

These are Sectors of the economy that are booming.

The Golden Visa Unveiled: Portugal's Diverse Citizenship Path

What do you get? Someone who has it all? A yacht, a private jet, a Banksy. In these times of Geopolitical uncertainty, a second citizenship might be the greatest get of them all. Political Instability has made people consider a plan B. Frankly, the United States, it's getting a little bit challenging. From a political perspective. The golden visa allows those with means to essentially buy a second passport. And there's a reason why they call it golden serious investment. Half a million euros, to be exact.

The golden visa program really became popular during the debt crisis in Europe as a way to attract investment and boost their economies. And as uncertainty mounts around the world, you see more and more demand. We're seeing a huge increase from the likes of China, Turkey, South Africa, Brazil, the US, and other countries around the world trying to gain citizenship in Europe.

One country in particular has seen a large Influx of applicants, especially from the United States. Portugal. Portugal. Portugal. Portugal's quality of life and this particular program for full EU citizenship is frankly the most appealing citizenship program in Europe right now. In 2023, the United States took the top slot for the most Portuguese golden visa applicants. And while the official numbers are pending, multiple reports indicate an even larger increase in US applicants in 2024.

But new restrictions have dramatically changed the price and terms of these golden visas, often pushing foreign investment into uncharted Sectors. While the golden visa may be a luxury out of reach for most, those who can afford it are scrambling to obtain a Lisbon-themed escape plan before it disappears altogether. The window on this type of investment scheme is definitely closing. Between 2011 and 2019, about 132,000 people gained residency in Europe through some sort of gold visa program and have raised about €21.4 billion, and Portugal alone raised 7 billion.

Portugal launched its Golden Visa program to attract money into the real estate market. It was almost too good to be true. Buy a house, get a visa. It was in 2020 that I decided to apply. So I did that. I rent the apartment, and it was easy because even you can stay just 15 days every two years. I speak English. I speak Spanish. Now I need to learn Portuguese.

But a real estate boom in Lisbon has fueled a housing crisis, which in turn created local Discontent for visa holders, with foreigners coming in, being not quite price sensitive, buying property and then not living there and renting it, that takes housing away from the locals. So not surprisingly, the local Portuguese began to get frustrated with these foreigners coming in, buying up housing stock. The first wave of golden visas were not adding actual value to the community. They just want to have the European passport, and that's in the end of the day, it's kind of shallow.

Local populace are very often blaming these foreign investment programs on this inequality in cities, and it's misaligned. The golden visa properties accounted for 0.4% of the properties that were sold in Portugal. So it was not a big impact on the price. There's a big tourism boom here in Portugal contributed to rising property and service prices. The tourism sector accounts for about 25 billion in Revenue per year. And there's a big inflow of foreign residents that move to Portugal, not necessarily with the golden visa, but with other visas, like the non habitual resident program or through the D seven or nomad visa.

Prices are increasing across the world, and we now live in a world where you can work remotely from anywhere. And so Lisbon, it's one of the most popular places for these digital nomads, and this is why you're seeing an increase in the cost of living and this massive Influx of people coming to the city.

But Discontent for the golden visa goes far beyond Lisbon. There was also pressure from the EU for countries like Portugal, Spain and Greece to end the golden visa programs, because they think the program paves the way for money laundering, corruption. After the invasion of Ukraine by Russia, the European Union found out that many Russians were applying for the golden visa, so they pressured countries to end this type of programs. Last year, the socialist prime minister announced that his government was ending the golden visa for real estate purchases.

This new restriction was designed to encourage a heretofore less favored pathway to EU citizenship by way of investment. What the government now is doing, by suddenly changing the rules, is trying to spill over some of this money into Strategic Sectors of the economy. The current golden visa program creates more wealth to the Portuguese economy, as these funds have to invest in the real economy or in the stock market.

Julian Johnson runs Tejo Ventures, a golden visa qualifying fund that offers investment in Portugal's solar infrastructure. We're using the Portugal golden visa almost as a trojan horse for us to invest in climate. So we're at an industrial fabrication site. We installed the solar panels on their roof. 170 energy. There's a massive pipeline of solar infrastructure that we're essentially stepping in to finance, and that includes factories, government offices, fire stations, hospitals, warehouses, business parks. They obviously get the benefit of cheaper, cleaner energy. And our investors have the security of a Collateralized energy contract for the duration of their time in the program.

To Align their efforts with local aspirations of sustainable development, Tejo has teamed up with Portuguese firm Cleanwatts. When we heard about Tejo, it was like a match made in heaven. What we are doing is we are creating power plants distributed around the country. For example, here in this building, we can share this energy with the people that live in 4 km radius. For us, as a country, this kind of funds bringing a lot of value.

Some of these Sectors have a lot of potential in a country that has 300 days of sun per year or even in farmland. These are Sectors of the economy that are booming. And some of these investors would probably not look at these Sectors in Portugal if the golden visa wasn't available.

Regardless of these positives, it is widely believed that the days of the golden visa are numbered. It seems like the door is slowly closing on this opportunity for the golden visa. Spain has recently announced that it's following suit with Portugal to end their golden visa program for foreign property buyers. Then you have the case of Greece that decided to increase the minimum threshold to get a golden visa from 250,000 to 400,000, in some cases to 800,000. The pressure on Portugal to increase at least the minimum threshold, if not end this type of programs will happen in the next couple of years.

Right now, we have a coalition government in place that really favours this program because they recognize the benefits that it brings to the country. From a tax receipts perspective, but also from a talent perspective, it's good for the country and so you should expect that the program will be around for the next couple of years at least. But there is a sense of urgency in terms of investing at this price and on these terms.

Politics, Economics, Global, Golden Visa, Investment, Portugal