Portugal’s Golden Visa Program Faces Legislative Changes: A News Report

Portugal’s well-known ‘Golden Visa’ program has been a gateway for many wealthy individuals to gain residency in the country. This program primarily allows for Portugal citizenship by investment. Foreign investors invest in properties and certain capital transfers to acquire residence permits.

However, the future of this lucrative pathway is currently in the spotlight as Portugal’s President, Marcelo Rebelo de Sousa, recently vetoed the ‘More Housing’ bill. This legislation, if passed, would terminate the country’s Golden Visa route through property investments and make it difficult to acquire Portugal residence by investment.
The president has sent the bill back to the Assembly, delaying its passage for a few weeks. This has provided a temporary window for affluent individuals to still apply for the Golden Visa.

Accompanying his decision was a letter highlighting the President’s reservations about the bill. He has requested additional modifications before it can be presented for his final approval. As of now, the parliament is not in session, but when they reconvene, they’ll be tasked with addressing the concerns raised by the President.

The original proposal sought to terminate the real estate component of the Golden Visa program, where investments start from as low as €280,000. If approved, future routes will pivot towards fund options and job creation avenues, beginning from €500,000.

President Rebelo de Sousa expressed concerns in his letter about relying heavily on entities like the Development Bank and IHRU, which may be overwhelmed with other responsibilities. He mentioned that mandating some rentals might prove to be inefficient, leading to poor results and possible political fallout.

He stressed, “The present decree lacks credibility for swift implementation. It fails to rally the necessary stakeholders – public, private, social sectors, and crucially, the Portuguese populace.”

The Assembly’s final version aimed to halt two primary channels for the Golden Visa – property purchases and a capital transfer of at least €1 million into a Portuguese bank. It remains uncertain whether these aspects will undergo further revisions and if acquiring Portugal residence by investment will be an option in the future.
The push for this bill stems from a housing crisis Portugal is experiencing. On February 16, the country’s authorities declared an intent to dissolve the Golden Visa Scheme as a segment of the ‘More Housing Program’. Furthermore, several European Union nations have consistently urged fellow EU members to halt Golden Visa offerings.

As the bill heads back to the Parliament for review, it’s a waiting game to see how lawmakers will respond, and whether a revised bill will find favour with the President.

Stay tuned for more updates and speak to an investment migration expert at FRR Immigration to know more about acquiring Portugal citizenship by investment.