Portugal’s government plans to review its Golden Visa scheme to combat the current inflation of property prices.
The Golden Visa programme, which grants residence to non-EU foreign investors, has driven up property prices, prompting the country’s government to look at setting limitations to the scheme.
Officially called the ‘Authorisation of Residence for Investment Activity’, the programme enables foreign citizens to gain a residence permit or even Portuguese nationality if they invest at least €500,000 in property, transfer a minimum of €1 million of capital or create at least 10 jobs in Portugal.
However, 90% of the scheme’s investment has gone into the property market, which has contributed to inflating property prices across the country, particularly in the Algarve, Lisbon and Porto.
Since its launch in 2012, the Golden Visa scheme has brought in an investment of €4.8 billion, €4.3 billion of which was applied to buying real estate.
New limitations
During a governmental debate about the regime last week, the Minister of Economy, Pedro Siza Vieira, spoke of the impact of the Golden Visa scheme on the Portuguese property market.
“It’s true that most of the decisions are related to real estate, and that will eventually lead us to consider a revision of the regime to see how we can use it better,” said Siza Vieira.
According to the Expresso newspaper, the alterations will look to limit and restrict property investment, rather than exclude it altogether from the scheme. The government is looking into the possibility of encouraging real estate investment inland and in low-density regions.
With the aim of spreading investment across the country, the government is also hoping to channel money from the scheme to create jobs, as well as regenerate urban areas and cultural heritage. According to data from the Service for Foreigners and Borders (SEF), just 17 investors of nearly 8,000 chose to invest in companies in Portugal.
As a result of the Golden Visa programme, more than 20,000 people so far have obtained residence in Portugal, the majority of whom are from China and Brazil.
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