On 16 February 2023, Portugal's Prime Minister, António Costa, announced that Portugal is ending its Golden Visa Program. Earlier that week, Ireland also announced an end to its Golden Visa scheme, making Portugal the second EU country to introduce these visa changes in February.
However, in a surprising turn of events, the ruling Socialist Party in Portugal put forward a revised proposal in June 2023 to retain the Golden Visa Program, although with significant modifications, most notably excluding real estate and certain forms of capital investments from eligibility. It is now expected that the Portugal Golden Visa program will not end.
What is the Golden Visa?
The Golden Visa scheme is also known as the Residence Permit Program. It allowed non-EU nationals to invest in exchange for a residence and work permit for up to five years.
After investing, non-EU nationals granted the Golden Visa could travel visa-free across the Schengen Zone, sign up for the non-habitual tax residency scheme, and qualify for a European passport, permanent residency, and Portuguese citizenship within five years.
19 July Update
On 19 July, the Portuguese Parliament affirmed the finalized version of the Mais Habitação bill, implementing noteworthy alterations to the Golden Visa scheme. Under the new regulation, all direct and indirect real estate investment pathways will be removed.
The following are the major impacts of this regulation:
- Current SEF (Foreigners and Borders Service) applications will be processed according to the laws effective during their submission.
- The annual average of 7 days stay necessary to keep residence permits is unchanged.
- Renewals of residence permits adhere to the same original guidelines.
- Family reunions are protected under the same conditions as main applications.
- Investment paths involving real estate and capital transfers are no longer eligible.
- The law becomes active the day following its official publication.
Despite the revisions, the Golden Visa program will persist.
The new qualifying investments are:
- €500,000 into collective investment structures like funds unrelated directly or indirectly to real estate.
- Establishing or joining the share capital of existing companies, coupled with job creation and a minimum €500,000 investment.
- Donations and other liberality types in the artistic and/or scientific domains.
What to expect
- After the approval in the plenary, the proposal reverts to the Commission for finalizing the text within a given timeframe (if undefined, then this will be five days).
- Upon settling the final text, it will be published in the Assembly Gazette.
- During a three-day work period, requests for corrections to the final text can be made, and a decision on these corrections will be reached within 24 hours, which could be subject to appeal.
- Afterward, the text is delivered to the President of the Republic.
- The President has 20 days to ratify the proposal, leading to its final publication.
- Conversely, the President can use a political veto, which the Assembly can overrule after 15 days.
- If the veto is overridden, the President has eight days to enforce the law.
- The text may also be forwarded to the Constitutional Court, where a ruling could take up to 25 extra days, potentially resulting in modifications or reevaluation.
- If requested by one-fifth of the deputies (46 out of 230), a preventive review by the Constitutional Court is possible.
- Once all necessary steps are accomplished, the final proposal is sent to the Diário da República for official publication and takes effect the following day.
Such processes can occur rather swiftly or face several hindrances that postpone the outcome of this proposal, making it challenging to precisely predict the exact deadline for each step. We will be able to track such legislative progress and guide all concerned parties.
Investors can still apply for Golden Visa real estate-related investment options under the existing legislation.
What caused the initial announcement of Portugal's Golden Visa ending?
The Portuguese government introduced the Golden Visa program ten years ago, following the 2011 financial bailout from the European Union and International Monetary Fund. The Golden Visa scheme was part of an effort to attract foreign investment that could boost the country's public finances and housing market.
Portugal announced the decision to end the Golden Visa program in a press conference following a cabinet meeting held about housing on 16 February. The decision was influenced by a property price surge that has led to a housing crisis.
This announcement is part of a series of measures to combat the housing crisis faced by Portugal's Socialist government. Since 2012, most Golden Visas have gone to more than 5,000 Chinese citizens, followed by upwards of 1,000 going to Brazilians. Other foreign nationals that have benefitted from the visa program include citizens of Turkey, South Africa, and the United Arab Emirates.
12 July Update: Funds Remain Eligible for Golden Visa Portugal But Real Estate Investments to be Excluded
The Committee on Economy, Public Works, Planning, and Housing of the Portuguese Parliament is set to approve the final draft of the Mais Habitação Bill on 18 July, although official confirmation is pending.
As of 12 July, the latest draft suggests that many existing eligibility criteria for the program will remain, with the notable exception of real estate investments, previously a popular choice for Golden Visa applicants.
Additionally, the real estate rehabilitation route and capital transfer will no longer be valid options.
The retained options include:
- Generation of a minimum of ten jobs
- Scientific research
- Cultural heritage conservation
- Collective Investment Undertakings, including venture capital and investment funds
- Business investment resulting in at least five new jobs
It's important to note that while venture capital and investment funds still qualify, the latest revision specifically excludes those funds invested in real estate. Essentially, all forms of real estate investment, whether direct or indirect, will be ineligible for the Golden Visa program.
Despite real estate being the most popular investment route for Golden Visa applicants – accounting for over 90 percent of all investments – the Portuguese authorities appear intent on curbing real estate investments within the Golden Visa framework.
Considering a grace period for ongoing developments
The revised legislation hints that developers with projects currently in progress, especially in the interior regions of Portugal, will have to find alternative sources of capital outside of Golden Visa investments when the new laws come into effect.
To ensure fairness for projects that have already commenced under the existing laws, it seems reasonable to implement a grace period, though this is yet to be decided.
Current Golden Visa program likely to persist for another 30-45 days
The legislative process is expected to be drawn out. It's predicted that the new law will get approved in its present form on 19 July, although this isn't definitive. Post the final vote, the bill will be dispatched to the President for promulgation.
This part of the process often takes weeks rather than days due to the need to meet a series of formal requirements. Although there's an official deadline for the President to conclude consideration of the bill, it's frequently overlooked, especially during the Parliamentary recess in August.
Based on prior legislative experiences, it's highly probable that the new law will be officially enacted within 30-45 days, or possibly more. Once passed, the final bill will need to be rewritten and subsequently sent to the President and the official gazette. There's also the possibility that the President could request the Constitutional Court to review the bill, especially considering the potential opposition parties voting against it.
For now, investors can still apply for Golden Visa real estate investments under the existing legislation. Despite the bill's "final" label, changes to its wording are still possible, and developments in the coming days could potentially influence the outcome.
Golden Visa Decision Likely Deferred to September
The final vote on the Mais Habitação proposal, targeting alterations to the Golden Visa program, is expected to be delayed until September. This shift was precipitated by the Parliamentary majority, Portugal's Socialist Party (PS), suggesting amendments to the More Housing Bill to retain but modify the Golden Visa Program. This is a major divergence from their initial stance to eliminate the program.
The decisive vote, initially scheduled for 19 July, is now unlikely due to a lack of scheduling at the Conference of Leaders on 21st June. With the usual 30-day advance notice for such votes and August being a holiday period, it implies the Golden Visa-related legislative decisions will likely be voted on in September. This suggests a possible extension for the Golden Visa until then, with a transition period being a potentiality.
Revised proposal on Portugal Golden Visa
The government's revised proposal intends to disqualify real estate and capital investments via deposits from Golden Visa eligibility. It plans to retain investment options such as venture capital funds, support for artistic production, scientific research, and job creation.
How we can help you
The delay offers an opportunity to apply for the Portugal Golden Visa. We at GetNifPortugal can assist you in obtaining your Portuguese tax number and opening a bank account. Our partners, Global Citizen Solutions, can help you in understanding the eligible investment options for the program. Our teams will work together to help streamline your application process. We constantly monitor the situation, adjust strategies, and remain optimistic that the Golden Visa will be preserved.
20 June: Revised Proposal Means That Portugal's Golden Visa May Continue
Recent developments suggest that Portugal's Golden Visa Program may continue, albeit with significant modifications. Contrary to the initial bill proposed earlier this year that aimed to completely abolish the program, the latest proposition indicates a potential extension with adjusted criteria.
Background
In February, the Portuguese government introduced the "Mais Habitação" (More Housing) initiative, a set of measures targeting the lack of affordable housing in the country. One of these measures included the proposed abolition of the Golden Visa Program. It's worth noting that this move was made even as major city purchases, such as in Lisbon and Porto, were no longer qualifying for the program since 2022.
Recent developments
In a surprising twist, Portugal's Socialist Party (PS), the majority party in Parliament, recently proposed to amend the "Mais Habitação" bill. This amendment aims to keep the Golden Visa Program open but remove real estate investments as a qualifying criterion.
According to the revised proposal, the Golden Visa will no longer include investments in real estate or similar capital investment instruments. Instead, the government intends to maintain investment options such as job creation, scientific research, support for artistic production, venture capital fund investment, and company incorporation with job creation.
This new direction is a marked departure from the government's initial plan to entirely eliminate the Golden Visa program.
Implications for investors
While it's a welcome change for many, it's crucial to analyze the potential impacts closely. A final vote on this proposal is expected soon, with the date tentatively set for 19 July. If approved, the Golden Visa program will continue, but real estate and instrument-based investments will no longer be eligible. No grace period has been indicated at this stage.
Once the proposal is approved, it will be sent to the President of the Republic for promulgation, a process that could take up to 20 days or more, depending on whether the bill is referred to the Constitutional Court.
For those who have already submitted applications under the existing program, the conditions of the Golden Visa program at their submission date will be honored. However, applicants are encouraged to monitor the legislative process closely, as further adjustments may be made to the proposal.
Moving Forward
The proposed changes to the Golden Visa Program signify a substantial shift in the government's position regarding the program's future. While initially seeking to terminate the program, the governing Socialist Party now proposes changes to tackle housing affordability issues. Despite this, the program continues to provide significant economic benefits to Portugal, and its ongoing status is still of considerable value.
The developments thus far indicate a renewed focus on the Golden Visa Program, acknowledging its economic contributions while addressing housing affordability. It's crucial to note that this is an ongoing discussion, and further changes may occur as the proposal passes through specialist committees.
For now, our recommendation is to stay informed, monitor developments closely, and be prepared to adjust strategies accordingly. It's an evolving situation, with much still to be decided. We'll continue to keep you updated on the situation. While the Golden Visa's future may not be cast in gold, it's far from over.
Fact Check on Golden Visa Ending:
As of now, the Portuguese law regarding the Golden Visa program remains unchanged. The government proposed a new law to end the program on 16 February, but it is currently in Parliament and has not been ratified.
It's important to note that a proposal is not a law, and only the Parliament can vote to amend the law. Until then, the existing Portuguese law still applies.
If you want to apply for the Portugal Golden Visa, you can still do so. However, it's recommended to start your application process as soon as possible.
Key dates and updates
Here are some of the key dates around the Portugal Golden Visa program's end.
- 16 February 2023: The government announced the planned termination of the Golden Visa program.
- April 2023: The final draft of the new law, aimed at ending the Golden Visa program, was submitted to parliament.
- 14 April 2023: The proposal revealed indicated there would be no grace period for the future law.
- June 2023: A significant twist occurred when the Socialist Party proposed an amendment to retain the Golden Visa program, albeit with key changes, notably excluding real estate and certain capital investments.
- 19 July 2023: This is the tentative date set for the final vote on the new proposal for the Golden Visa program.
Update from 29 May 2023
As of 29 May 2023:
- The proposed law for the end of the Golden Visa is currently in Parliament.
- First Vote (19 May)
- The first vote on the general aspects of the law was approved in Parliament due to the ruling party having a majority.
- Parliamentary Commissions Debate (Date unknown)
- The law is now subject to a debate in the Parliamentary Commissions where other parties request opinions and stakeholders are heard.
- Changes to the bill usually occur at this stage.
- Parliamentary Discussion (Date unknown)
- After the debate, the bill goes to parliament for a discussion where its specific wording will be approved or rejected.
- Final Vote (Mid-July at the earliest)
- The law will then be subject to a final vote.
- The final global vote is not expected to take place until mid-June at the earliest.
- Law Sent to President (After final vote)
- After the final vote, the law is sent to the President who can either accept it and send it to the Official Gazette or submit it to the Constitutional Court for consideration.
- If sent to the Constitutional Court, this adds at least 25 days to the timeline and increases the chance of having amendments.
- Leaders' Conference (24 May and 7 June)
- The Leaders' Conference sets the parliamentary agenda and was last held on 24 May.
- The next Leaders' Conference is scheduled for 7 June. The proposal's scheduling is expected to happen at this next meeting.
- The Golden Visa will continue until the middle of July 2023, at least due to the current timeline of the process
- As mentioned above, these amendment proposals will take place after the one-month public hearing.
Portugal Golden Visa Update from 14 April: Final Proposal Announced
On 14 April, the Government released the final proposal regarding the future of the Golden Visa program, following numerous announcements and public debates. The proposal is now up for discussion in Parliament, and it includes several key points regarding the end of the Golden Visa program.
To sum up, the final proposal outlines the following key points:
- The new law will not have a retrospective effect on individuals who have already received a Golden Visa
- The seven-day-per-year stay requirement will still be enforced
- The Golden Visa will be rebranded as the D2 Entrepreneur Visa, which will offer the same benefits as the Golden Visa
- The cultural option will still be available for the investor visa
The law will take effect upon its publication in the official journal. Given the various stages of the legislative process, it is anticipated that the approval process will take a minimum of 45 days, assuming there are no delays, but it will probably take longer.
The Portuguese government has announced that all Golden Visa applications submitted until the new law comes into force will remain valid and will be processed under the current regime with no retroactive effects. This means that the minimum stay requirement of staying in the country for seven days a year, on average, will still apply.
Additional information
The Government's final proposal guarantees that the new law will not apply retroactively to any requests submitted before it goes into effect, and all such applications will be processed according to the current rules. The stay requirement of seven days per year will remain the same despite the visa being renamed.
The proposal also ensures that family reunification requests linked to the Golden Visa program will be protected.
The new law is expected to take effect the day after its publication, and no grace period is foreseen for the revocation of the Golden Visa program in Portugal. Although this subject could still be subject to debate and change, it is reasonable to assume that this is the final call for obtaining a Golden Visa.
What's Next?
For the proposal to become law, it must go through the approval process in Parliament, which is expected to take at least 33 days based on the current Parliamentary schedule and the various stages involved in the legislative process. Assuming everything goes smoothly, the proposed law is likely to be approved.
Here's a breakdown of the legislative process that will take place for the new law proposal:
- Parliamentary discussion: The proposal will be discussed in a general session in Parliament, where the lawmakers will share their opinions and concerns.
- Committee review: Relevant committees will then review the proposal, and they may also consult with experts and stakeholders to provide their feedback.
- Voting in Parliament: Parliament will then vote on the proposed law, and amendments may be proposed and debated.
- President ratification: The President has the power to ratify or veto the proposal on political grounds, which may result in the proposal being sent back to Parliament for reassessment or sent to the Constitutional Court for technical assessment.
- Constitutional Court validation: If the Constitutional Court is involved, it will review any legal provisions that have raised doubts in the President. The President may then send the proposal back to Parliament with a constitutionality veto or enforce it, depending on the Court's formal announcement.
- Official publishing in the Diario: After the law is published, it will enter into force according to the predetermined timeframe specified in the vacatio legis.
We are pleased to see that the final proposal aligns with our predictions that legal protections will be in place and the new law will not have retroactive effects on existing Golden Visa applications.
When will Portugal's Golden Visa officially end?
The Government's announcement didn't specify an exact end date for the program. Following the announcement, key stakeholders were given an opportunity to voice their concerns and opinions on the measure.
Following this consultation period, the Council of Ministers is expected to meet again to announce a more detailed and comprehensive package of measures on 30 March 2023.
After being voted on generally and reviewed in specialized commissions such as the Constitutional Affairs Commission, the bill was debated by affected stakeholders and social partners who shared their reviews on the measure. The Portuguese Government cannot legally make changes to the Golden Visa program without the Assembly of the Republic approving these changes. Political parties with a parliamentary seat presented minor and major amendment proposals and a vote was taken on the final version of the measure by the Assembly.
A final draft of the new law was submitted to the parliament in April, stating that anyone applying for the Golden Visa before the law comes into effect will still abide by the current law's requirements. Global Citizen Solutions created a task force to examine the proposed changes and contribute to discussions on the initial proposal's impact.
The task force suggested several ideas to redesign or revamp the program. As of 14 April, the future law that will come into force will have no grace period for revoking the Golden Visas in Portugal. However, there are expectations that the parliament might include a grace period.
Once this version of the text is finalized, the President of the Republic can either publish the measure immediately or suggest amendments and return it to the Parliament and then Assembly for review. The President can also send it to the Constitutional Court for legal review, ensuring that the measures comply with the Constitution.
The final voting on the termination of the Golden Visa will likely happen by the end of June, meaning the program, as known currently, will be in force until then.
Portugal Golden Visa Update from 30 March
On 30 March 2023, during a press conference held by the Ministerial Council, the Prime Minister of Portugal, António Costa, announced the government's final position regarding the Housing Package Policy and the future of the Golden Visa program.
The government intends to reframe the program into a traditional type of visa, and pending applications will be assessed according to the general regime for granting a visa instead of in accordance with the Golden Visa program.
Authorizations granted
The authorizations granted upon renewal will be based on existing requirements but will be reframed as traditional visas. The reduced minimum stay requirement of seven days per year may be at stake, given that this feature of the Golden Visa program does not exist in traditional visa types.
Authorizations pending approval
Pending applications will be assessed according to the general regime for granting a visa rather than under the Golden Visa program. The cases for which the government intends to apply this measure are unknown.
The government's reasoning behind bringing the Golden Visa program to a close is that continuing the scheme is no longer justifiable. They've suggested that investors will eventually be redirected to traditional visas.
The practicalities of the measures still need to be clearly defined, and the final bill is not yet available.
21 March Update
On 21 March 2023, the President of Portugal, Marcelo Rebelo de Sousa, referred to the Mais Habitação (more housing) bill, which aims to terminate the Portugal Golden Visa program, as "unfeasible" and "inoperable." He suggested that the bill may be a "poster law" designed to draw attention to the party platform instead of creating realistic legislation. De Sousa's opinion on the matter carries significant weight and will likely influence the final proposal discussed on 30 March.
The Mais Habitação bill was introduced in the Portuguese parliament in January 2021. The bill seeks to end the Portugal Golden Visa program, which has been running since 2012. The program grants residency permits to non-European Union citizens who invest in Portuguese real estate or create jobs in the country. The program has been successful in attracting foreign investment to Portugal, particularly in Lisbon and Porto. However, critics argue that the program has contributed to the rise in real estate prices.
The Mais Habitação bill seeks to terminate the program nationwide, citing concerns about the impact on the housing market and the economy. The bill has been controversial, with critics arguing that it would harm foreign investment and damage the country's economy.
20 March Update
The President of Madeira, Miguel Albuquerque, criticized the Mais Habitação bill on 20 March, stating that the regional government of Madeira would not comply with the measures. He argued that the bill could cause economic disaster on the island, which is highly dependent on tourism and foreign investment. Albuquerque stated that Madeira's autonomy grants the island a range of powers that include the "capacity and authority to legislate on the subject." He has asked for a specific solution that takes into account the regional reality of Madeira, as the current bill would create an economic disaster on the island.
De Sousa recently visited Madeira and called for calm and negotiation, asking parties involved to display a "wait-and-see" approach as there are alternative proposals and legal courses of action being considered. Should discussions not go as he hopes, Albuquerque has warned that he is prepared to join forces with the Azores, Portugal's other Autonomous Region, which is in the same situation.
It is worth noting that the Autonomous Regions do have the capacity to resist decisions from Lisbon. However, their ability to do so in relation to the Portugal Golden Visa is another matter, as residence permits are issued directly by the Portuguese Republic. The governments of Madiera – or the Azores – cannot issue residence permits on their own, therefore relying on national legislation.
The Mais Habitação bill has caused controversy and disagreement among politicians and citizens alike. While the bill seeks to address the issue of affordable housing, it may have unintended consequences on foreign investment and the economy. The President's comments and Madeira's refusal to comply with the measures show that there is still much debate and negotiation to be done before a final decision is made.
Update from 9 March 2023
On 9 March, the Portuguese government announced that the public consultation period has been extended until 24 March. Originally, it was announced that the Golden Visa changes would be decided and announced on 16 March.
The government is currently waiting for the Association of Municipalities to provide their opinion on the matter. The Association is expected to release its opinion on 21 March, and as a result, the government's decision-making process has been delayed until 30 March. At that point, the government will make an announcement regarding its intentions to submit a proposal to Parliament and what that proposal will entail.
The fact that the government has postponed its decision-making process is a positive indication that they are taking this matter seriously. It's possible that this decision was influenced by the pressure that stakeholders have been putting on the government.
GetNifPortugal partner, Global Citizen Solutions, involved in the public consultation stage of the Golden Visa ending
Global Citizen Solutions has formed a task force committee that includes experts in immigration, economics, and real estate. The commission submitted a proposal to the Portuguese government with the main objective of raising awareness among policymakers about the potential negative impact of ending the Golden Visa program as currently announced.
Currently, Global Citizen Solutions is involved in the public consultation phase to determine the future of the Golden Visa program. They offer alternative real estate and investment options that do not contribute to the current housing crisis in Portugal.
By submitting this proposal to the government, their aim is to provide detailed information to aid in making the best decision possible regarding the Golden Visa.
For those interested in reading the document, it can be found here, but it is in Portuguese. We recommend using a translation tool such as DeepL or ChatGPT for those who do not understand Portuguese.
Frequently Asked Questions about Portugal's Golden Visa Ending
1. Is there a deadline for the Portugal Golden Visa ending?
There has been no announcement on when the amendments will be implemented or what these exact amendments will be. We expect that the current Golden Visa legislation will remain as is for at least another 45 days.
The Golden Visa is at risk of being completely suspended in the short-to-medium term, but it might continue to exist in another form in the future.
2. Are there any Golden Visa alternatives?
The Government is yet to announce if an alternative investment program will be introduced to replace the Golden Visa scheme. We will have a more detailed understanding of the measures after the announcement on 30 March.
However, as it currently stands, there are still alternative visa options that allow you to live and work in Portugal.
The alternative options can also lead to Portuguese citizenship and visa-free travel throughout the Schengen Zone. Check out our Working Remotely in Portugal and Portugal Work Visa articles to read about your other visa options.
3. Do these measures affect existing Golden Visas or Golden Visas in the application stage?
If you already have a Golden Visa, Portugal is not canceling existing visas or visas at the pre-approval stage.
At this stage, we have yet to determine an exact timeline for when the measures will be brought in and which existing visa holders they will affect. Once the measures have been debated, edited, and presented as a final draft on 30 March, we'll have a clearer picture of the measures proposed.
Note that as things stand, you can still apply for the Portugal Golden Visa. We would urge you to begin your application immediately.
If the law passes as it was announced on 16 February, the government will aim to renew current Golden Visas if the Portuguese property belonging to the visa holder is:
- Their permanent residence
- The permanent residence of a family member
- Put on the rental market
