The Portugal Golden Visa program is one of the most popular permanent residency by investment schemes in Europe. Initiated in 2012, investors can obtain residency permits for themselves and their families in exchange for making a qualifying investment in real estate. The Golden Visa Program has benefited over 6,500 foreign investors and brought more than five billion euros into the economy.
At the end of the Council of Ministers, which took place last week, the Minister of State and Presidency announced the approval of decree-laws concerning Portugal Golden Visa program investment. This has changed the legal regime for Portugal Golden Visa program for investment, as provided for in a legislative authorisation of the State Budget for 2020.
Under the legislative authorisation granted by the State Budget Law of 2020, whose validity expired on December 31, 2020, the Portuguese government decided to modify the Portugal Golden Visa program.
The new regime will come into force on July 1, 2021, with a transitional period foreseen until 2022. The renewals of processes approved under the current administration and the subsequent requests for family reunification will not be affected.
As a result of this, the Portugal Golden Visa will cease to be eligible through real estate investments in coastal regions and metropolitan areas, especially in Porto and Lisbon. However, the real estate properties in inter-municipal communities (CIM) in the interior and the autonomous regions will be qualified as usual.
Rationale for proposed measures
The Portugal Golden Visa has been extremely successful amongst the foreign investors. Since its launch in late 2012, this program has brought billions of Euros into the Portuguese economy. In 2020, the program generated EUR 496.7 million despite the pandemic. Due to the program’s high demand, there is an inflow of huge capital in the real estate market. This led to an increase in the property prices, and thus, the locals could not afford the properties, especially in cities like Lisbon and Porto. Therefore, Portugal’s government has decided to distribute this in different sectors to ensure an overall growth and development of the country.
However, it is essential to note that these changes are only applicable for Lisbon and Porto. The other areas on these cities’ boundaries and the other regions like Algarve would still be available for investing.
Impact of proposed measures
In 2020, the Portuguese government proposed Portugal Golden Visa real estate investment changes. This deadline was postponed back in June 2020, due to COVID-19 pandemic. However, last week the government the Council of Ministers has approved the decree-law which will come into force in July 2021, with a transitional period. This gives investors a small window of time to take advantage of Portugal Golden Visa’s current benefits.
The investors interested in properties in Lisbon and Porto should invest by April. Opening the bank account and investing can take up to 1- 2 months. Other than this, registration the documents require another two months. Therefore, investors must invest in the properties in these areas soon.
Although these proposed changes will not impede Portugal’s Golden Visa Program, it will limit international investors buying property in thriving urban cities, including Lisbon and Porto. There are no changes discussed in this area for investors interested in purchasing property low-density areas like the Algarve. Therefore, residency in Portugal should be regular in this case.
The Algarve is becoming more popular for the Portugal Golden Visa program as the minimum requirements are lower due to its low-density location.
However, it is essential to note that as the changes exclusively focus on acquiring real estate for either 500,000€ or 350,000€, these changes proposed by the government do not apply to the fund investment option or any other investment routes of the Portugal Golden Visa program. Also, there will be no impact on the investors who have already applied for the Portugal Golden Visa.
Window of opportunity
The measures proposed for Portugal Golden Visa Program will reduce the real estate market’s burden in large cities and stabilise price growth. The deputies expect to redirect the flow of investments to less developed regions and industries of the country.
The new conditions will only apply to applicants who apply for Portugal Golden Visa after the innovations have officially entered into force. If an investor applies before the publication of the changes, they will participate in the programme according to the old rules. The investors will also have the opportunity to invest in large cities in business and open companies.
In October 2020, the Portuguese authorities had discussions to decide whether to pass this legislation in early 2021. While the proposed measures would not wholly derail the Portugal Golden Visa Program, these can limit foreign investors’ options to make a property investment in the thriving urban cities.
Time to act is NOW
If investors are ready to invest in the Portugal Golden Visa Program, then the time to do so is now. In this way, the investor will acquire official status in the European Union on current conditions, with a guaranteed prospect of getting citizenship in 5 years. The investor will also be able to get their residence permit in 1 year, and can also easily maintain their Residency status by staying in Portugal for just seven days in a year. These changes can lead to the loss of present benefits, and so this is the best time to consider investing in Lisbon and Porto property through Portugal Golden Visa Program.
The Portugal Golden Visa program is one of the most popular permanent residency by investment schemes in Europe. Initiated in 2012, investors can obtain residency permits for themselves and their families in exchange for making a qualifying investment in real estate. The Golden Visa Program has benefited over 6,500 foreign investors and brought more than five billion euros into the economy.
At the end of the Council of Ministers, which took place last week, the Minister of State and Presidency announced the approval of decree-laws concerning Portugal Golden Visa program investment. This has changed the legal regime for Portugal Golden Visa program for investment, as provided for in a legislative authorisation of the State Budget for 2020.
Under the legislative authorisation granted by the State Budget Law of 2020, whose validity expired on December 31, 2020, the Portuguese government decided to modify the Portugal Golden Visa program.
The new regime will come into force on July 1, 2021, with a transitional period foreseen until 2022. The renewals of processes approved under the current administration and the subsequent requests for family reunification will not be affected.
As a result of this, the Portugal Golden Visa will cease to be eligible through real estate investments in coastal regions and metropolitan areas, especially in Porto and Lisbon. However, the real estate properties in inter-municipal communities (CIM) in the interior and the autonomous regions will be qualified as usual.
Rationale for proposed measures
The Portugal Golden Visa has been extremely successful amongst the foreign investors. Since its launch in late 2012, this program has brought billions of Euros into the Portuguese economy. In 2020, the program generated EUR 496.7 million despite the pandemic. Due to the program’s high demand, there is an inflow of huge capital in the real estate market. This led to an increase in the property prices, and thus, the locals could not afford the properties, especially in cities like Lisbon and Porto. Therefore, Portugal’s government has decided to distribute this in different sectors to ensure an overall growth and development of the country.
However, it is essential to note that these changes are only applicable for Lisbon and Porto. The other areas on these cities’ boundaries and the other regions like Algarve would still be available for investing.
Impact of proposed measures
In 2020, the Portuguese government proposed Portugal Golden Visa real estate investment changes. This deadline was postponed back in June 2020, due to COVID-19 pandemic. However, last week the government the Council of Ministers has approved the decree-law which will come into force in July 2021, with a transitional period. This gives investors a small window of time to take advantage of Portugal Golden Visa’s current benefits.
The investors interested in properties in Lisbon and Porto should invest by April. Opening the bank account and investing can take up to 1- 2 months. Other than this, registration the documents require another two months. Therefore, investors must invest in the properties in these areas soon.
Although these proposed changes will not impede Portugal’s Golden Visa Program, it will limit international investors buying property in thriving urban cities, including Lisbon and Porto. There are no changes discussed in this area for investors interested in purchasing property low-density areas like the Algarve. Therefore, residency in Portugal should be regular in this case.
The Algarve is becoming more popular for the Portugal Golden Visa program as the minimum requirements are lower due to its low-density location.
However, it is essential to note that as the changes exclusively focus on acquiring real estate for either 500,000€ or 350,000€, these changes proposed by the government do not apply to the fund investment option or any other investment routes of the Portugal Golden Visa program. Also, there will be no impact on the investors who have already applied for the Portugal Golden Visa.
Window of opportunity
The measures proposed for Portugal Golden Visa Program will reduce the real estate market’s burden in large cities and stabilise price growth. The deputies expect to redirect the flow of investments to less developed regions and industries of the country.
The new conditions will only apply to applicants who apply for Portugal Golden Visa after the innovations have officially entered into force. If an investor applies before the publication of the changes, they will participate in the programme according to the old rules. The investors will also have the opportunity to invest in large cities in business and open companies.
In October 2020, the Portuguese authorities had discussions to decide whether to pass this legislation in early 2021. While the proposed measures would not wholly derail the Portugal Golden Visa Program, these can limit foreign investors’ options to make a property investment in the thriving urban cities.
Time to act is NOW
If investors are ready to invest in the Portugal Golden Visa Program, then the time to do so is now. In this way, the investor will acquire official status in the European Union on current conditions, with a guaranteed prospect of getting citizenship in 5 years. The investor will also be able to get their residence permit in 1 year, and can also easily maintain their Residency status by staying in Portugal for just seven days in a year. These changes can lead to the loss of present benefits, and so this is the best time to consider investing in Lisbon and Porto property through Portugal Golden Visa Program.