According to the new residency system in Portugal regarding the categories eligible to obtain a golden visa, it has been decided to exclude real estate investment from people who can obtain a golden visa to Portugal.
Portugal golden visa
These new decisions come from the Portuguese government regarding the residence visa for residents, due to the great concerns regarding the housing crisis, in addition to the significant increase in real estate prices, especially due to the concerns raised regarding the golden visa system in Portugal.
Reuters International also reported, via Portuguese government officials, that real estate investment is no longer a possibility for acquiring a golden visa in Portugal under the newly extended residency-by-investment scheme, with investment money expected to be employed instead.
It is worth mentioning that these recent choices coincided with the Portuguese government's recent intentions to abolish the golden visa system in February 2023, which has been blamed for the increasing housing crisis. The initiative at the time aimed to transfer real estate investments from major cities to depopulated areas around the country.
Who can live in Portugal?
The Portuguese Golden Visa Program allows affluent non-EU citizens to live in Portugal if they invest. Foreign investors, mostly Chinese, Americans, and Brazilians, have invested $8 billion in it since 2012.
Portugal's real estate industry contributes for 90% of these flows, raising housing prices. Over security concerns, the European Commission has recommended for the suspension of such initiatives.
Since 2015, Portugal Golden Visa candidates can invest in funds. Funds are likely to become the main investment conduit after a law approved last year that phased out real estate. Cultural and research donations are other choices.
PM Legal lawyer Vanessa Lima told Reuters that real estate has trumped other possibilities for foreigners applying for Golden Visas.
CMVM-approved funds must receive at least €500,000 from applicants. Lima estimates 40 eligible funds, some of which may not accept new assets, but the CMVM does not identify them.
Despite no public statistics, three Golden Visa attorneys told Reuters that investment funds may account for 80–90% of qualified agreements in the future. Some argue the money may come to Portugal without real estate. The funds just need to invest 60% domestically.
