What’s the Risk?

The Trouble With Getting Residency Under a “Bad” Government…

Is it possible to have a good life in a country with a bad government?

I know that’s a loaded question… and that my definition of “bad” isn’t the same as everyone’s. But recent developments in the visa world have put that question on the table.

Russia, for example, has recently launched a “Shared Values Visa.” It’s separate from all other pathways to Russian residency and doesn’t count against the country’s annual immigration quotas. You don’t have to speak Russian or know anything about the country. You must just commit to signing a “Declaration of Beliefs” that align with the worldview of President Vladimir Putin.

Within the European Union, Hungary has recently announced a so-called “National Card,” distinct from its Golden Visa program. It’s available to nationals from a select group of countries, all of which—with the curious exception of Ukraine—are closely aligned with Russia, as well as Russia itself.

Now, anyone taking advantage of the Russian Shared Values Visa would presumably do so with eyes wide open. You know you’re going to be cutting your ties with Western countries and making yourself subject to the same sort of sanctions being applied against Russia in response to the war in Ukraine. And of course, you’d be living under Russian law, which is no walk in the park.

But countries like Hungary pose a more difficult problem. Superficially, the country’s Golden Visa program—which grants residency to people contributing a minimum of €250,000 to approved real estate investment funds—appears to be a low-cost route to EU residency. The international migration press reports on it regularly, and generally favorably. Several people who’ve consulted with me at Global Citizen have asked about it.

The problem is that Hungary’s relationship with the European Union is on the rocks. The view in Brussels is that the Hungarian government’s policies are increasingly at odds with basic tenets of the EU constitution.

The expansion of Hungary’s National Card program could be the proverbial straw that breaks the camel’s back. EU countries on the Russian periphery have reacted with anger and alarm. Sixty-seven members of the European Parliament have written an open letter to the European Commission asking them to act against Hungary.

Their concern is straightforward. The National Card program has no quotas or caps, and unlimited renewals. It gives nationals of countries like Russia and Belarus—which are openly hostile to the European Union—the right to live, work, and travel within the region.

Whilst the other EU countries double down on efforts to keep Russian spies out of their countries… Hungary is effectively rolling out the red carpet for them.

There are plenty of opportunities to get long-term residency in countries with “bad” governments… in the sense of running their country poorly, corruption, and so on.

I live in one such country, South Africa. People like me who choose to live here are aware of the situation and adjust their expectations accordingly.

Hungary poses an entirely different question. Does it make sense to take advantage of a residency program in a country increasingly at odds with its neighbors and the broader western world?

I’ve visited Hungary several times, and Budapest is without doubt one of the continent’s most beautiful cities.

But even if you’re sympathetic to the Hungarian government’s attitudes and policies… the fact remains that if things continue as they are, Hungary could have its rights as an EU member suspended, negating that advantage of life there.

I’ve spent most of my adult life analyzing how politics affects countries’ economies and vice versa. That’s made me cautious about some otherwise highly attractive countries.

That’s what subscribers to my Global Citizen service get… an unfiltered, pragmatic view.

I’ve always told it like I see it—and I always will.