Since its launch in 2012, the Portugal Golden Visa program has attracted around 12,000 investors and generated over €6 billion inward investment for the country. However, in February 2023, Portuguese Prime Minister Antonio Costa announced his intention to scrap the scheme, citing the need to “fight against price speculation in real estate”.
Portuguese Golden Visa: cancelled?
Managing the country’s property market and ensuring affordable homes for residents has been a clear focus for the Portuguese authorities in recent times. The “Mais Habitação” (More Housing) initiative includes far-reaching interventions, some of which have proved controversial, such as the extent of the clampdown on Airbnb-style rentals.
The cancellation of the Portugal Golden Visa program seemed set in stone as part of these changes. However, in recent weeks the government appears to have relented somewhat, with wide speculation that the scheme will now remain. This could potentially mean that investors will still have ways to obtain a Golden Visa for Portugal. That said, there will be changes, and the elimination of the property purchase route seems almost certain.
Portugal’s golden visa scheme was believed to be cancelled in May
A new Portugal Golden Visa?
The Portugal News has published details of changes to the Golden Visa program, which have been proposed by the Portuguese Socialist Party (PS). If passed, the program will remain in place after all, but with significant changes.
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The most notable is the elimination of Golden Visas gained via property investment. In the past, people could obtain a visa via a real estate investment of €500,000 or more. (In some cases, renovation projects for buildings over 30 years old could also qualify for a lower €350,000 threshold). The vast majority of successful Golden Visa investors to date have chosen the real estate investment route.
This now looks set to end, along with the option to transfer capital over €1,500,000.
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Alternative residency by investment schemes
While this closes down the most popular route to a Golden Visa, the new proposals leave open several other routes, which could be of interest to investors. They are as follows:
- Investment in a venture capital fund. (€500,000 or more).
- Business investments that create 10 or more jobs in Portugal.
- Investment in a commercial company (requiring a capital transfer of €500,000 or more).
- Contributions to scientific research. (€500,000 or more).
- Investments in artistic or cultural heritage. (€250,000 or more).
It’s essential to note that the above is currently at a draft bill stage. It will be firmed up in late July and then discussed, (potentially) amended, and passed in government. Exact implementation dates would then follow.
A key detail to keep abreast of will be the amount of time that new Portugal Golden Visa holders are expected to spend in the country each year. One proposal is the conversion of Golden Visas to Entrepreneur (D2) visas. These require the holder to spend six consecutive months in Portugal (or eight non-consecutive months).
Compared to the original Golden Visa, this is a stringent requirement. At the time of writing, Golden Visa holders can spend as little as seven days per year in Portugal. The government is keen to attract people with a genuine connection to Portugal and eliminate the option of using it purely as a route to EU entry and free movement across the Schengen area.
Residence permit with stamped passport
Other routes to Portuguese residency and citizenship
For those not attracted to the remaining visa options, there are several other routes to Portuguese residency. In some cases, these can lead to citizenship for those who remain in the country long enough and meet the requirements.
They include:
- The D2 visa for business investment in the country.
- The D7 (passive income) visa.
- The new D8 (digital nomad) visa.
Along with the Non-Habitual Resident tax scheme, Portugal remains a place that’s keen to attract new overseas residents and a destination where many types of workers could potentially retain more of their income than in their home country.
The Portugal Golden Visa changes will take some time to shake out, but plenty of options do and will remain for those looking to relocate to the country. Learn more on our Moving to Portugal page.
