Is the Portugal Golden Visa Ending? Not Really.

What Happened to the Real Estate Golden Visa?

The proposed "Mais Habitação" bill, introduced on May 19th, 2023, by former Prime Minister Antonio Costa, sought to address inflation and rising real estate costs in big cities such as Lisbon and Porto. The draft law included provisions to end the Golden Visa programme as a whole, which had significantly contributed to Portugal's economy. The bill faced opposition from President Marcelo Rebelo de Sousa, who questioned its feasibility and potential impact. Despite being approved by a majority in the Parliament ruled by Mr. Costa’s political Party (Socialist Party), the bill was vetoed by the President, requiring further parliamentary debate.

The Presidential veto occurred on August 21st, 2023, stopping the termination of the Golden Visa programme in Portugal. At the time, President Sousa argued that the bill would not effectively curb real estate speculation or reduce high rents. The veto made the proposal return to Parliament for further revisions and a new voting process.

After the Parliamentary reviews, it was identified that with the end of all Golden Visa options, sectors such as the Cultural Industry would suffer a big loss – as the Golden Visa has an option for Donations and contributions for pre-approved Artistic and Cultural projects and Scientific research. After the parliamentary discussion, the new proposition went again to vote at the plenary session, which kept the Golden Visa as a path for residency-by-investment in Portugal. However, the Deputies voted to terminate the Real Estate option at the Golden Visa programme, keeping other options such as selected Donations, and Investment in Capital Ventures and Funds. The change did not affect renewals of existing permits.

The legislative process was finally complete on the 23rd of October 2023, and the bill was published in the gazette (Diário da República), making the proposition effective.

Portugal Golden Visa Is Still Available - Find the Best Options

Currently, the Golden Visa Program is still accepting new applications. Investors can apply through various routes, capital investments, and job creation. However, with so many changes in place, and options available, it is more important than ever to navigate this process with the help of experts in the in the Residency by Investment industry. As Portugal Homes specialises in guiding investors through the Golden Visa application process, helping them to find the best opportunities, we turned to our advisors, that indicated the Funds option as the best current path for acquiring a Golden Visa.

It is important to remember that the Portugal Golden Visa will make you eligible to live, work and study in Portugal. The programme allows low physical presence requirements from the golden visa investor, with eligibility to apply for a Portuguese passport after 5 years. If you are looking into, partially or fully, move to Portugal, holding a Portuguese residency offers numerous benefits, allowing you to enjoy a high quality of life in one of the safest and sunniest countries in the world. Additionally, the residency provides visa-free travel to 29 European countries within the Schengen Area, including Austria, Belgium, Bulgaria, Czechia, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, Liechtenstein, Luxemburg, Malta, Norway, The Netherlands, Poland, Portugal, Romenia, Slovakia, Slovenia, Spain, Sweden, and Switzerland.

Portugal Golden Visa Investment Funds - The Most Popular Choice

Investment funds have become a popular option for obtaining a Golden Visa. These funds offer diversified portfolios managed by professionals, focusing on sectors such as technology, renewable energy, and infrastructure. Investing in funds can be less demanding than purchasing and managing real estate, as we explain later at this article, making it an attractive option for many investors.

By choosing the Investment Funds Golden Visa option, you can invest directly in several profitable Portuguese companies, startups, and multiple industries such as hospitality and tech. This option not only provides a pathway to residency but also ensures a diversified investment portfolio in one of Europe's most dynamic economies.

Although the Portuguese Golden Visa was established in 2012, the Investment Fund option was only introduced in 2017 through the amendment to Law 23/2007 of July 4th. Specifically, Law 102/2017 of August 28th allowed funds to be invested legally and eligible for securing residency in Portugal.

The amendment specifies: "An investment of €350,000* aimed at acquiring units in investment funds or venture capital funds designed to capitalis e companies established under Portuguese law. These funds must have a maturity of at least 5 years, with at least 60% of the investment value placed in commercial companies based in Portugal."

The Portuguese market offers a wide range of investment funds. Typically, most funds eligible for the Golden Visa programme are focused on private equity or venture capital. Prior to the 2023 amendment, real estate investment funds were quite prevalent, usually structured as REITs (Real Estate Investment Funds) or SPVs (Special Purpose Vehicles) that handle property acquisitions and management. However, the Portugal Golden Visa rules for 2024 have eliminated this option.

Investment Funds are less demanding than purchasing and managing real estate because they eliminate the need to handle property-related fees and physical management. With the Funds option, investors can focus on a specific area or diversify their investments, and they can do so from any place from the globe.

While some financial services or fund management firms may concentrate on a single company, most funds specialise in one sector at a time. The Portuguese Golden Visa allows investors to spread their investments across multiple funds, provided they meet the minimum investment threshold of €500,000.

This flexibility allows investors to allocate €100,000 each into 5 different funds, provided they adhere to the fund management company's criteria. Certain funds may have specific investment limitations, such as a minimum required investment.

Can the Portugal Golden Visa Be Cancelled Anytime Soon?

Since the discontinuation of the Real Estate option in October 2023, concerns have been raised about the potential cancellation of the Portugal Golden Visa Programme. Although the former government proposed ending the programme, the legislative process, including parliamentary approval and presidential ratification, avoided such a rash measure, making the Golden Visa still eligible in Portugal through other options.

Developments in 2024, with a new government being elected, indicate that the immediate termination of the Golden Visa is highly unlikely. The programme remains robust and stable, continuing to attract investors worldwide. The Golden Visa has been a significant part of Portugal's economic strategy, demonstrating resilience and adaptability in response to political landscapes.

Investors should stay informed about potential changes and consult with professionals to effectively navigate any legislative adjustments. Despite discussions about its future, the Portugal Golden Visa remains a secure and valuable option for obtaining residency and eventual citizenship in Portugal.

Frequently Asked Questions

Q. Has the Portugal Golden Visa Ended?
A. No, the Portugal Golden Visa remains eligible. Despite the recent legislative developments, the Portugal Golden Visa Programme has not ended and remains operational with options through €250,000 donations and €500,000 Funds options.

Q. Are Previous Portugal Golden Visa (via Real Estate) Applicants Affected?
A. No, existing Golden Visa holders and those who have already submitted applications were not affected by the changes. They can continue to renew their visas and apply for permanent residency or citizenship.

Q. When did the Portugal Golden Visa Terminate the Real Estate option?
A. The Golden Visa Real Estate option was terminated on 23rd October 2023.

Q.  Is the Portugal Golden Visa the Main Culprit Behind the Increase in Rental Prices?

A. Property prices in Lisbon are soaring, but specialists indicate that this surge is more closely related to the booming tourism industry than to the Golden Visa Programme. Over the past decade, Lisbon has seen a dramatic increase in tourist arrivals, growing from 6 million visitors annually to 13.8 million. This influx of tourists has driven up rents, as property owners prefer short-term rentals, which are more lucrative compared to long-term leases. The core issue lies in balancing support for local residents while preserving the tourism industry, which constitutes about 20% of Portugal’s Gross Domestic Product (GDP).

Q. Is the Golden Visa Still Available for Investors?
A. Yes, the Golden Visa Program is still available. Investors can apply under options such as the €500,000 Investment Funds.

Q. Can I Still Apply for the Portugal Golden Visa?
A. Yes, applications are currently being accepted.

Q. Can the Real Estate Investment Option for Portugal Golden Visa Be Restored (by a New Government)?
A. It is possible that future governments may review and potentially restore the real estate investment option depending on economic needs and political priorities. The new government, elected in February 2024, has already mentioned that new options might be added to the Golden Visa Programme in the future.