Portugal Important amendments to the Portuguese Golden Visa

On February 16, the Prime Minister of Portugal confirmed the measures leading to the substantial amendment of the Golden Visa program, emphasizing that the main reasons are due to the growing speculation in the real estate market.

When will the changes come into effect?

The changes will arise from the modification of the Foreigners Law, which provides for the Autorizaçao de Residência para fins de Investimento (ARI) (Residence Authorization for Investment Purposes).

The legal amendment procedure will take at least 45 days, so we will not know the new text until then, after the Law is processed in Parliament.

However, the date is not yet certain.

Due to the legislative technique known in Portugal, there will surely be a deadline for the entry into force of the amendments. For example, the last limitations in relation to the ARI (Real Estate Acquisition Zones) had a vacatio legis from December 2020 to January 2022.

However, due to the forcefulness and interest in fighting speculation in the real estate sector, we should surely expect an extinction of less than one year.

The end of investment in Portugal?

On the contrary: this will be an amendment to the current regime. The Government has called it a reclassification of the current legal framework.

But certainly, an end of the Golden Visa linked to Real Estate, beyond the renewals of those who already have the approved ARI, who the Government has assured will have a specific and limited regulation.

So far, and according to statements made by the Prime Minister, we know that the possibilities of residency for cultural investments, job creation, among others, will be maintained.

Recommendation

Although we do not have certainty in the dates and conditions of extinction, what is certain is that the regulation that allows applying for the Golden Visa is currently in force and as of today it is possible to apply for it.

For this reason, if you plan to invest and reside in Portugal, we recommend that you apply as soon as possible or look for investment alternatives that can presumably be covered by the new rule, which we suggest below.

Alternatives

In case you have not yet finalized the Real Estate investment, we recommend redirecting the investment to sectors that will surely be less affected by the legal changes, such as investment funds. Please refer to our other post on this subject.

Likewise, you can decide to apply for other types of residence based on entrepreneurship or work (even remote) reasons.

We must not forget that Spain, its immediate neighbour, has reinforced its Golden Visa program, granting longer times for the initial application (3 years) and superior advantages in the processing after the new Startup Law recently published on December 28, 2023, as detailed in this publication.