Plans to Scrap Portugals Golden Visa Scheme
In a statement on the 1st of November 2022, the Portuguese PM António Costa stated “they may no longer be justified”
Preceding all the bad publicity surrounding the Golden Visa Scheme and the protests to end them, the Portuguese prime minister has now admitted Portugal’s Golden Visas may no longer be justified.
Re-evaluating Visas and Schemes
Talking to reporters at the end of a two-hour visit to the Web Summit on Tuesday morning, he said they may have finally “served their purpose”.
There are schemes that we are currently re-evaluating and one of them is that of Golden Visas, which, probably, has already fulfilled the function it had to fulfil and that at this moment it is no longer justifiable to maintain
he said in the company of António Costa Silva the minister of the economy.
A Positive Move in the Right Direction
It is a statement that will have many saying “not before time!” but at least this is now a positive move in the right direction. The European Commission has been trying to shut down the Golden Visa Scheme for some time, indicating that it has posed “a risk to security, transparency and values that underpin the EU project”.
Portugal’s new attention looks likely to be more focused on visas that give growth to the economy without the threat to the country’s security. This can be seen in the new Digital Nomad Scheme a tax regime for ‘digital nomads’ which the PM was promoting at this morning’s capital’s tech summit.
How the new digital nomad visa works
Starting this week, the new visa scheme is targeting remote workers whose salary is more than four times the Portuguese national minimum wage which is currently €705 but will be rising to €761 in January 2023.
There are two alternatives, the first whereby suitable candidates can apply for a temporary-stay visa of up to one year, or alternatively apply for a residency permit that can be renewed for up to five years. At which time they could apply for Portuguese Nationality and Passport.
How to Apply for the New Digital Nomad Visa
You can apply for the Digital Nomad Visa at a Portuguese Consulate in your home country or at Portugal’s immigration agency, Serviço de Estrangeiros e Fronteiras. Applicants must provide proof of income for the past three months at the date of submission. Applicants must also provide their current tax details in the country of payment along with a contract of employment or proof of self-employment.
One of the scheme’s biggest selling points especially for UK applicants is that recipients can travel visa-free throughout the Schengen Area without dealing with border control.
Portugal has seen many more foreign residents arriving since the covid pandemic started. Many of these have arrived by applying for the Portuguese D7 Visa or passive-income visa to set up a home in the country.
The D7 Visa is still an Option
The D7 Visa is one of the more affordable schemes of its kind as it requires applicants to have an annual income of just €7,200 euros to qualify. However, unlike the digital-nomad visa, the income must be acquired from passive investments such as real estate, stocks and shares or equity in a company and not a monthly salary.
So if you have been thinking about making your move to the Algarve by applying for the Portuguese Golden Visa Scheme, now is the time to act before it’s too late. If you are interested in finding out more about moving to the Algarve please contact one of our professionals at the office who will gladly point you in the right direction.
The managing Partner handles the property promotion and sales from the Almancil office which is also adjacent to the luxury coastal golf resorts of Vale do Lobo and Quinta do Lago. With over 25 years of experience in the Algarve property & financial markets.