Portugal Golden Visa Ending: Portugal To Stop Golden Visa Program In 2023?
In February of 2023, it was announced that the Portugal Golden Visa would come to an end. The Golden Visa program was introduced in Portugal back in 2012 and its objective was to attract foreign nationals to invest in Portuguese real estate in return for which they would be granted a Portugal residence permit. The decision to stop the Portugal Golden Visa was made in order to deal with the housing shortage in the country and increasing the number of properties for sale in the real estate market.
Portugal Plans to Stop Issuing Golden Visas
The Portuguese Government announced on the 16th of February 2023, that the Portugal Golden Visa program would be ending soon. The decision was announced as part of a housing package that was presented before the Council of Ministers. The Portuguese Prime Minister António Costa stated that the problem of the current shortage of houses in Portugal could be solved by eliminating the Golden Visa Program as it would invite less real estate investments from foreign individuals. The Prime Minister has also announced that golden visas that were previously issued exclusively in return for real estate investment can only be reissued if the visa holder intends to use the property for permanent residence or for renting.
Is the Portugal Golden Visa Really Coming to an End?
On 20th June 2023, an amendment to the More Housing Bill was proposed by Portugal's ruling Socialist Party (PS), which had a majority in Parliament. It was suggested that rather than ending the Portugal Golden Visa Program altogether, some changes should be made in the rules. On 6th July, the bill was approved for presentation to Parliament by the special commission. Hence, the latest draft of the bill suggests that the Portugal Golden Visa program will stay operational with most of its investment options staying as they are, except for the highly sought-after real estate options, which will no longer qualify for the program.
Portugal Golden Visa Stops Real Estate Investments Option Only
As of 12th July, it is known that the Government will keep running the Portugal Golden Visa program but without the option of real estate investment. Therefore, the proposed changes indicate that three of the following investment options previously offered in the program will no longer be considered:
- Capital transfers of €1,500,000 or more.
- Real estate purchase of €500,000 or higher.
- Real estate rehabilitation investment in at least 30 year old properties of €350,000 or more.
Portugal Golden Visa Program - When will the New Changes be Implemented?
Although it is not clear yet when the new Portugal Golden Visa amendments will be implemented, the Golden Visa program should continue on with a variety of other investment options, including:
- An investment of €500,000 or more in venture capital funds.
- Creating at least ten jobs.
- An investment of €500,000 or more in public or private scientific research activities.
- Supporting cultural heritage by investing €250,000 or more in its recovery and maintenance or in an artistic production.
- An investment of capital shares of €500,000 or more in an existing company, or to develop a new commercial company with the creation of five new jobs.
The New Portugal Golden Visa 2023
Even with the changes made to it, the Portugal Golden Visa program will still have the same rules regarding the addition of the applicant's family members. Additionally, all applications submitted before the revised law comes into effect will go through processing under the original rules of the Golden Visa program. However, after the new law is approved and implemented, applicants will not be able to obtain a Golden Visa by investing in real estate or making capital transfers. They may still apply for the program by investing in options that are mentioned above including venture capital funds, scientific researches, cultural heritage, company investment, and creation of ten new jobs.
The Malta Permanent Residence Program (MPRP) as an Alternative for the Portugal Golden Visa
Individuals who still want to acquire a second passport by investing in real estate, can consider opting for the Malta Permanent Residence Program instead. The MPRP offers permanent residence in return for purchase or rental of a property in Malta, in addition to a payment to the government and a charity donation. Real estate investment is not required to be made before an approval is granted and residence cards can be renewed every 5 years. The MPRP also allows visa-free travel within the Schengen Zone for 90 days out of a 180-day period. The Malta Permanent Residence Program is hence, a great alternative to the future revised Portugal Golden Visa Program.
Portugal Golden Visa 2023 Updates
Get in touch with us to stay updated with the new Portuguese Golden Visa changes and future developments. Speak to our Property Advisers for the best alternative estate investment opportunities to the Portuguese Golden Visa.