The Prime Minister, António Costa, revealed this Thursday, February 16th that the Golden Visa Portugal Program would end in its current form. We explain what will change
As part of the “More Housing” package, presented by the Portuguese Government at the Council of Ministers on Thursday, February 16, 2023, several measures were implemented with the aim of expanding the rental market in Portugal, which includes beneficiaries of Golden Visas. The end of Residence Permits for Investment as a way to combat real estate speculation is giving rise to a wave of national and international criticism. In practice, the Golden Visa Portugal Program ends, either through investment in real estate, or through the creation of companies and, consequently, jobs in the country
What changes for those who invested in real estate?
Golden Visa beneficiaries who own real estate in Portugal will only be able to have their visas renewed if:
- Live permanently in their properties, or alternatively, their descendants
- Place their homes on the long-term rental market (the minimum rental period for these properties was not specified)
Who can apply for Golden Visas?
For reasons of property acquisition in Portugal, it will not be possible to benefit from the Golden Visa Portugal Program which is about to end. The Portuguese Prime Minister, António Costa, stressed that it must be considered “that there is a new legislation related to the residence permit in the country for foreigners that includes students, highly qualified professionals and others” and that this model of attribution of a Gold Visa for foreign investment in real estate has come to an end.
More than 10 thousand Golden Visas
In 10 years (between October 2012 and January 2023), 11,628 Golden Visas were granted in Portugal, most of which (around 9 thousand) for reasons of buying real estate; making an investment of 6.7 billion euros, according to data from the Foreigners and Borders Service, SEF.
Main nationalities:
- China (5258)
- Brazil (1178)
- United States (558)
- Turkey (547)
- South Africa (508)
SEF data also reveal that under the Golden Visa Portugal Program, 18,962 residence visas were granted for family reunification, that is, so that the relatives of a holder of this authorization could legally live in the national territory.
The Golden Visa Portugal Program was created at the end of 2012 and allowed obtaining a Golden Visa through foreign investment in the country: acquisition or rehabilitation of real estate; creation of companies and consequently jobs; patronage.
At the end of 2020, the Government had authorized changes to the legal regime for residence permits through or for investment (which would come into force in July 2021). A few weeks later, already in 2021, Decree-Law nº 14/2021 of February 12 is published, which again postpones the entry into force of the new rules to January 1, 2022.
In practical terms, the Government took two years to implement the changes it stipulated, including the main one: investment in residential properties located in the autonomous regions of Madeira and the Azores, or in the interior of the country was an open door for the golden Visa. The acquisition of properties in Lisbon or Porto would no longer be an eligibility criterion.
On the other hand, investment via capital amount as of January 1, 2022, has a minimum amount of 1.5 million euros instead of the amount of one million euros that until then was in force. This legislation made it difficult for foreign investors to access golden visas, who still did not back down.
On November 22, 2022, in Parliament and during the debate of proposals for amendment of the 2023 State Budget, the PS rejected the PCP’s proposal to end the Golden Visas. But it was not just the PS, the PSD and Chega also voted against it, while the Liberal Initiative abstained, and all the other parties voted in favor.
This proposal from the communist group that was vetoed would be one more in Parliament, if the Prime Minister, António Costa had not announced weeks before, during the Web Summit (November 2, 2022), in Lisbon that the “Government would be evaluating the continuation of the Golden Visa program for possibly fulfilling its purpose”. In addition, a few days later (November 9), the Minister of Economy and the Sea, António Costa Silva informs that the Government is creating a working group to assess the end of this Program.
These announced measures are a draft law that will be submitted to Parliament to be legislated.
