Is the Golden Visa Coming Back to Portugal?
Since its inception in 2012, Portugal's Golden Visa program has been one of Europe's most successful residency-by-investment initiatives, attracting billions of euros in foreign investment. However, in 2023, the Portuguese government announced the program's termination as part of efforts to address housing shortages and concerns over rising property prices, especially in urban areas like Lisbon and Porto. This decision raised the question: Is the Golden Visa making a comeback?
Background on the Golden Visa Program
The Golden Visa program allowed non-EU citizens to obtain residency in Portugal by making qualifying investments, such as purchasing real estate worth €500,000 or more, creating jobs, or investing in specific funds. It also provided a path to Portuguese citizenship after five years without the need to permanently reside in Portugal, making it highly attractive for investors, particularly from China, Brazil, the U.S., and Turkey.
From its launch until its suspension, the program brought in over €6 billion in foreign investments, with real estate being the most popular form of investment. While it significantly boosted the Portuguese economy, the Golden Visa program was criticized for inflating housing prices and contributing to a housing crisis in urban centers.
The Suspension in 2023
In February 2023, the Portuguese government, led by Prime Minister António Costa, announced the end of the Golden Visa program as part of a broader housing policy package known as "Mais Habitação" (More Housing). The program was phased out primarily in urban areas to curb real estate speculation and make housing more affordable for residents. Additionally, Portugal enacted a new regulation prohibiting new short-term rental licenses, such as Airbnb, in tourist-heavy areas to further stabilize housing availability for locals. The decision sparked debate, especially among developers and foreign investors, who argued that the program was a significant economic growth driver.
Possibility of a Golden Visa Comeback
As of 2024, there has yet to be an official announcement that the Golden Visa program will return to its previous form. However, discussions have emerged regarding potential revisions or alternatives that could be implemented. Some key factors could influence its potential revival:
Economic Impact: The Golden Visa was a major contributor to Portugal’s economy. If the country experiences a significant downturn in foreign investment due to the program’s cancellation, there may be pressure on the government to reconsider a similar initiative. Some stakeholders, including developers and lobbyists, have been vocal about the negative impact of the program’s suspension on the real estate sector and tourism.
Political Climate: Depending on changes in the political landscape or public sentiment, a future government might reconsider bringing back the Golden Visa or a similar investment program with modified rules. This could involve more targeted investments that exclude urban real estate and focus on regions still needing foreign capital, such as rural areas or business sectors like tech or green energy.
International Competition: Other European countries like Greece and Spain have continued their residency-by-investment programs. As Portugal competes with these nations for foreign investment, a revised version of the Golden Visa could be introduced to keep the country attractive to wealthy investors.
New Alternatives?
While the traditional real estate-based Golden Visa may not return to its original form, Portugal might look into other avenues to attract foreign investment. These alternatives could focus on:
Rural Development: Incentivizing investments in less developed regions.
Job Creation: Programs that tie residency to investments that lead to job creation.
Green Investments: Encouraging sustainable and eco-friendly projects that could align with Portugal’s environmental goals.
While the Golden Visa program has officially ended, it’s unclear whether it might return in some form. For now, investors looking at Portugal must navigate a changing landscape, and any potential revival of the program will depend on economic, political, and social factors in the coming years. Keep an eye on legislative updates as the country adapts to the impacts of the Golden Visa phase-out.
Other residency options, such as the D7 Visa for passive income earners, remain available for investors still interested in Portugal. The government will likely continue exploring new ways to attract foreign investment without fueling housing market concerns. To better understand all Visa Types for Portugal, Download our free guide!
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