Portugal’s Golden Visa Program is no longer in place. This program allowed non-EU citizens to obtain a five-year residency in Portugal by making certain investments. The residency permit provided the right to live, work, and study in Portugal and visa-free travel in Europe’s Schengen Area. In addition, the program only required an average of seven days of stay in Portugal per year, which could also contribute towards citizenship eligibility after five years.
Impacts of Portugal’s Golden Visa Program Ending Are Starting To Show
However, the end of the program is causing some disruptions in planned investments, particularly in the culture sector. For example, 34 million euros were intended to be invested in projects related to cinematographic art. These projects mainly focused on the country’s interior and involved 170 foreign investors from countries such as the United States, Canada, and the Middle East. With the new measures affecting the Authorization of Residence for Investment Activity, some film projects have been suspended, even those negotiated with streaming platforms. The Ministry of Culture has noted that the matter is still in the legislative process and will not comment further.
What were The Benefits of the Golden Visa
To qualify for the golden visa, applicants could choose from options such as capital transfer, property acquisition, or business creation. These options had varying requirements, such as a minimum real estate purchase, creating a certain number of jobs, or a minimum capital transfer into a Portuguese bank account.
The benefits of the Portuguese golden visa included:
- Visa-free travel in the Schengen Area.
- Eligibility for citizenship after five years of legal residency.
- A low physical presence requirement.
- High-quality education.
- A high standard of living.
- Access to international healthcare.
How Many Golden Visa Residences Were Given Out By Portugal?
From January to December 2022, 1,281 investors received a Portugal Golden Visa. In addition, their family members, a total of 1,588 people, also received residency permits. In total, Portugal issued 2,869 residency permit cards during this time.
What Types Of Golden Visas Were Granted Most?
Real estate investments were the most common investment types among Portuguese Golden Visa applications. There were 9,170 real estate applications, with the majority being EUR 500,000 purchases (8,311 applications) and 859 being EUR 350,000 urban rehabilitation purchases. Capital transfer applications numbered 578, the largest being EUR 1 million transfers to a Portuguese bank (489 applications). However, only 19 applications were for the creation of 10 full-time jobs. Other investments included capital investments in funds and business and a single EUR 250,000 donation to preserve national heritage or support artistic production.
What Are Other Possible Impacts of Portugal’s Golden Visa Program Ending?
I predict that the suspension of the Golden Visa will have various potential negative impacts. Some of these might include the following:
- Decreased foreign investment: The end of the program may discourage foreign investors from investing in Portugal, as they will no longer have access to the benefits and incentives offered by the Golden Visa.
- A slowdown in the real estate market: The real estate market may be affected as there will be a decrease in demand from foreign investors, who were a significant source of demand for Portuguese properties. This is another factor that may contribute to the Portugal Housing Bubble Bursting.
- Decreased job creation: The suspension of the Golden Visa program may result in fewer new job opportunities, as there will be a decrease in investment in business and job creation.
- Decreased funding for cultural projects: The end of the program may lead to a decrease in funding for cultural projects, as foreign investment in this sector is likely to decrease.
- Loss of revenue for the government: The government may experience a decrease in revenue due to lower taxes and fees paid by foreign investors.
It’s important to note that I am not a financial or real estate analyst. These potential impacts may only sometimes come to fruition, and the extent of their impact may vary. Additionally, the Portuguese government may mitigate these adverse effects, such as implementing new programs or incentives to attract foreign investment. I’d love to know what you think.
How is the cancellation of the Golden Visa Program affecting you?
How do you think it will affect Portugal’s economy?
Do you think it will lead to more positive than negative changes?
Let me know in the comments below. I look forward to hearing from you.
FAQs
The Portugal Golden Visa Program was a five-year residency program for non-EU citizens. To obtain the visa, applicants had to make certain investments, such as a minimum capital transfer, property acquisition, or business creation. The visa provided the right to live, work, and study in Portugal, as well as visa-free travel in Europe’s Schengen Area.
The most common type of Portugal Golden Visa was for real estate investments. There were 9,170 real estate applications, with the majority being EUR 500,000 purchases. Capital transfer applications numbered 578, with the largest being EUR 1 million transfers to a Portuguese bank. Only 19 applications were for the creation of 10 full-time jobs.
Yes, there are other types of visas available for those who want to move to Portugal.
The benefits of the Portugal Golden Visa included visa-free travel in the Schengen Area, eligibility for citizenship after five years of legal residency, a low physical presence requirement, high-quality education, a high standard of living, and access to international healthcare.
The suspension of the Portugal Golden Visa Program could result in decreased foreign investment, a slowdown in the real estate market, decreased job creation, decreased funding for cultural projects, and a loss of revenue for the government.
The requirements for a Portugal Golden Visa included a minimum capital transfer, property acquisition, or business creation. These options had varying requirements, such as a minimum real estate purchase, creating a certain number of jobs, or a minimum capital transfer into a Portuguese bank account.
From January to December 2022, 1,281 investors received a Portugal Golden Visa, and 1,588 of their family members also received residency permits. In total, Portugal issued 2,869 residency permit cards during this time.
There were many reasons, but the main reason is that housing in Portugal has become too expensive for locals.
I am not 100% sure. So far, there is no information saying it will be reinstated.