The End of Portugal’s Golden Visa Program
Foreign Investment in Real Estate for Gold Visa to be Halted
Further to our recent article Could this be the end of the Portugals Golden Visa Scheme?, the Portuguese Government have decided today, the 16th of February 2023, to terminate the gold visa program, being announced as part of a housing package that was presented before the Council of Ministers.
According to Portuguese Prime Minister António Costa, stopping granting new “golden visas” to large foreign investors is one way to alleviate the housing shortage and halt real estate speculation.
The Prime Minister has announced the end of the gold visas and existing visas issued solely for real estate investment can only be reissued if the property is to be used as a permanent residence or to rent.
However, the Government is going to keep the Golden Visa program running but without the current advantage of investing in real estate.
The gold visa program, launched in 2012 aimed at attracting foreign investments and allowed individuals to invest in Portuguese real estate and allowed foreigners to move within the Schengen with their families.
Portugal has been issuing “residence permits for investment” since their inception when it was receiving financial aid from the European Union and also seeking foreign investment capital.
The move came to tackle the current housing crisis in Portugal and presented a list of measures aimed at increasing the number of available homes.
“In these last 10 years, rents have registered an increase much higher than inflation and the current prices are too high for the Portuguese market,” Antonio Costa stated
Appeals from the real estate sector to the government fell on deaf ears and they have decided to end the program. The visa, which also exists in other European countries, has already been revised.
During the last 10 years, Portugal has raised a total of almost 6.9 billion euros in exchange for approximately 11,650 residence permits granted to applicants willing to buy property worth at least 500,000 euros, invest at least 1.5 million euros, or create 10 jobs.
Only time will tell the impact this will have on the real estate market in the Algarve. In our opinion, very little apart from the fact more rental properties may now become available.
“Gary Thomas” – Gatehouse International Algarve
Gary Thomas is the Managing Partner at Gatehouse International Algarve, based in Almancil, close to the luxury resorts of Vale do Lobo and Quinta do Lago. With more than 25 years of experience in the Algarve property and financial markets, Gary oversees property promotion and sales, offering valuable expertise to clients worldwide.
