Previously, the Foreigners and Borders Service (SEF) disclosed that between October 2012 and January of this year, Portugal granted a total of 11,628 golden visas, with the majority being issued to citizens from China (5,258), Brazil (1,178), the United States (558), and Turkey (547).

To address the housing crisis, Portugal terminated its Residency by Investment scheme on February 16. This program allowed wealthy international individuals to obtain residency by making a specific investment and meeting certain conditions. The Portugal News recently reported that the government is considering proposed changes to the Golden Visa program and is currently in the phase of gathering suggestions. Marina Gonçalves, the Minister of Infrastructure and Housing of Portugal, stated that over 90 percent of golden visa investments are in real estate, leading to an indirect effect on the housing market by driving up housing costs. She emphasised that this topic is being discussed in European countries as well.

Currently, several European countries offer wealthy individuals the opportunity to obtain residency and citizenship through similar schemes such as the Golden Visa and Golden Passport.

The Impact Of The Golden Visa Program

The Golden Visa program has had a significant impact on Portugal’s economy and real estate market. The program, which allowed wealthy individuals to obtain residency by investing in the country, brought substantial foreign investment into Portugal. This influx of capital stimulated economic growth and had positive effects on various sectors, particularly real estate.

One notable consequence of the Golden Visa program was the surge in demand for properties, particularly in popular cities like Lisbon and Porto. Foreign investors, seeking to fulfill the program’s investment requirements, often chose to invest in real estate projects. As a result, property prices experienced a notable increase, leading to a thriving real estate market.

The program’s influence extended beyond the real estate sector. The investments made by Golden Visa participants contributed to job creation, stimulated economic activity, and boosted sectors such as construction, hospitality, and tourism. Additionally, the program generated substantial revenue for the Portuguese government through application fees and taxes associated with property transactions.

However, there have been concerns regarding the impact of the Golden Visa program on the housing market and local residents. Critics argue that the program has contributed to rising housing costs, making it increasingly challenging for locals, particularly in urban areas, to find affordable housing. This issue prompted the Portuguese government to reassess the program and make changes to address the housing crisis.

Credits: Unsplash; Author: @adrien-olichon;

With the termination of the Golden Visa scheme, Portugal is now evaluating potential modifications to the program. The government aims to strike a balance between attracting foreign investment and ensuring the affordability and accessibility of housing for its citizens. The discussions surrounding these changes reflect the broader conversation taking place in European countries regarding the effects of similar programs on their economies and housing markets.

Getting In Under The Wire

Despite many expats abandoning Portugal in the face of the Golden Visa program ending there is still time to apply for a Golden Visa. It has also been confirmed that applications submitted will still be considered until the point the legislation ending the program is signed into law. In other words, if you’re looking to gain a visa for Portugal this is still a viable option. Overall, while the Golden Visa program has had a significant impact on Portugal’s economy, particularly in terms of foreign investment and real estate, there is an ongoing effort to strike a balance that benefits both the country and its residents. Beyond that other visa programs such as the Digital Nomad scheme remain highly popular. So while there may be fewer ‘golden’ expats living in Portugal the community of foreign workers and entrepreneurs is thriving.


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