Is the Portugal Golden Visa Ending? Not Exactly | 2024 Update

You might have read some news reports about Portugal’s Golden Visa is suspended or coming to an end. Is the Portuguese government really stopping one of the most lucrative citizenship-by-investment programs in Europe? The short answer is no.

However, the Portugal Golden Visa program has undergone important changes. Following a ministerial meeting in 2023, the Portuguese government presented measures to respond to various concerns within the scope of Portugal’s housing policy.

The Portuguese Parliament voted to restructure the program rather than end it, and the new legislation ruled out real estate investment or capital transfer as a means of qualifying for future applications. This means the Portugal Golden Visa program will continue, and the changes will not affect existing applications.

In this article, we’ll take a look at the latest Portuguese Golden Visa program announcements and their critical implications for future investors.

Is The Portugal Golden Visa ending?

The Portugal Golden Visa program is not coming to an end or suspended. However, there were important modifications to the program. On 7 October 2023, the new legislation came into force, and it is no longer possible to invest in real estate to qualify for the program. This includes the real estate Azores and Madeira Golden Visa.

Since its inception in 2012, the Portugal Golden Visa program has undergone several changes, leading many to assume that it will eventually be canceled. In 2022, an amendment to the law restricted the ‘qualifying’ areas for real estate investment within Portugal and made several investment options more expensive.

The Portuguese government explained that these changes were necessary to spread foreign investment evenly to other parts of Portugal. With the Lisbon and Porto real estate markets thriving, the government chose to focus its attention on developing the property market in Portugal’s interior areas.

After these changes, the government hinted in early 2023 that it would end the Portugal Golden Visa Program. However, later announcements confirmed that it was only undergoing a restructuring and would still be available for foreign investors.

For instance, commercial and real estate investments are no longer eligible for the Portugal Golden Visa program, but venture capital fund investment opportunities are still available.

Portugal Golden Visa Changes

The “More Housing Law”

Previously, Portugal’s Golden Visa program allowed non-EU citizens to gain residency through property investments, contributing to rising property prices in the country.

However, in October 2023, the Portuguese government published the “Mais Habitação” law. This law addressed Portugal’s housing crisis by introducing measures to increase the country’s housing availability and affordability.

The Mais Habitaçāo bill officially took effect in October 2023, bringing changes to the Golden Visa program in Portugal. It is no longer possible to issue residence or Golden Visas based on acquiring real estate categories.

Current investment options

Despite the Portugal Golden Visa Changes, the Golden Visa program continues to exist in its current form. The remaining investment options are:

1. Venture Capital Fund Investment: Capital transfers of €500,000 or more for participation units in venture capital funds. Keep in mind that investment funds that have direct or indirect real estate investments are no longer an option.
2. Investment or donation in the arts or reconstruction of national cultural heritage with a donation of at least €250,000
3. Scientific Research: Science or Technology research contribution of at least €500,000
4. Creation of ten jobs: Creation and maintenance of ten jobs during the required period
5. Share capital and job creation: Incorporation of a company or reinforcement of a company’s share capital, in either case with an investment of €500,000, combined with the creation of five or maintaining ten jobs (5 of them permanent).

Investment routes that are no longer available

• A capital transfer in the amount of €1,500,000 or more is no longer accepted.
• Real estate acquisition with a value of €500,000 or higher is prohibited.
• Property investment for rehabilitation or restoration on listings at least 30 years old, with a total investment of €350,000 or more, is no longer an option.
• Real estate purchases in low-density areas, €400,000 or €280,000, are no longer an option.
• Investing in a real estate-related fund is no longer viable.

Social Investor Visa Portugal

The recently elected Portuguese Prime Minister, Luis Montenegro, announced an “Action Plan for Migration” in June 2024 to transform Portugal’s immigration framework.

A notable change involves the Portugal Golden Visa introducing the New Residence Permit for Solidarity Investment, also known as the Social Golden Visa. This initiative aims to channel private capital into social investment for immigrant integration projects. 

This includes investments in reception infrastructure, integration projects, and support for vulnerable immigrants.

The Government views this residence-by-investment program as a tool for the Migration Plan and the “Build Portugal” Plan, suggesting a new Golden Visa option through investment in affordable housing projects.

While the specifics and timings of this new Golden Visa option are speculative, they seem promising yet potentially challenging in implementation and attracting significant investment, similar to the current Golden Visa cultural investment option.

Are previous Golden Visa applicants affected?

The program changes have no impact on Portugal Golden Visa applications made before the law change. If you’ve initiated or finalized your investment, you can still maintain your visa under the same terms you initially applied for. There will be no retroactive impact on your investment or your residency status.

In addition to the specified investment avenues, the main consequences of this legislation encompass:

• Pending applications with AIMA (Foreigners and Borders Service) will be evaluated according to the laws at the time of submission.
• The minimum residency requirement to maintain residence permits remains unchanged, at an average of seven days annually.
• The renewal process for residence permits will continue to adhere to the original regulations.
• Family reunification conditions for dependents remain consistent with primary application requirements.
• Investment routes tied to real estate and capital transfers are no longer considered qualifying investments.
• The law took effect on 7th October 2023, following its official publication in the Diário da República.

Key Takeaways on The Portugal Golden Visa News

Despite property investment no longer being an option, the Portuguese Golden Visa Program still has several attractive investment routes available.

In 2024, the program is still processing Portuguese Golden Visa applications worldwide and granting residency by investment to individuals and their accompanying family members. Portugal’s Golden Visa program remains one of the most sought-after investment schemes globally. 

Renowned for its flexibility, stability, and access to the Schengen Area, the scheme offers Golden Visa investors a pathway to a Portuguese residence permit through alternative investment routes such as job creation, research activities, venture capital funds, and cultural heritage preservation. This adaptability, coupled with Portugal’s favorable tax regime and high quality of life, makes the Golden Visa scheme appealing for individuals seeking residency in Europe.

Since the changes have been made, Portugal Golden Visa fund investments have gained traction as a popular way to qualify for the program.

Why choose Global Citizen Solutions for your Immigration Visa?

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• Our successful track record in applications provides reassurance to applicants. 
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Frequently Asked Questions about the Portugal Golden Visa Program Ending

What is the Portugal Golden Visa?

The Golden Visa in Portugal is a program that awards investors with residence permits in Portugal, provided that they make a qualifying investment in the country.

Is the Golden Visa Portugal ending?

The Portugal Golden Visa program will not come to an end. On 19 July 2023, the Portuguese parliament voted to restructure the program. The legislation has been passed.

Since October 2023, significant changes to what type of investment qualifies for the Golden Visa scheme have been implemented – namely, buying property are no longer eligible for the program.

When is Portuguese Golden Visa suspended?

The Golden Visa program isn’t suspended or coming to an end. There have been changes to what type of investment qualify for the scheme – namely, real estate investments are no longer eligible for the program.

Despite the recent developments, which remove direct and indirect real estate investments as avenues for residency, the Portugal Golden Visa remains popular among foreigners seeking residency in Europe.

What should investors do if they are currently in the process of obtaining a Portugal Golden Visa?

These new measures only apply to new applications. All applications that have already been filed, even if not yet pre-approved, are not affected by this change in the law. Under the Portuguese Constitution, a new law cannot have retroactive effects. AIMA (which replaced SEF as the Portuguese Immigration and Border Force) is obliged to follow current Golden Visa legislation. This is why it is business as usual, and you can still apply for the Golden Visa.

How long do investors have to invest in real estate under the Golden Visa? 

According to the latest news on Portugal’s Golden Visa application process news, investors can no longer opt for the real estate investment option when applying.

Can I still apply for the Portugal Golden Visa?

Yes, you can still apply for Portugal’s Golden Visa. However, you cannot make a property investment or make a capital transfer in exchange for Portuguese citizenship.

Contact the team at Global Citizen Solutions, who can help with your Golden Visa process.

Will previous or current Golden Visa holders be affected by the program’s changes?

The changes will not affect individuals who submitted the Golden Visa application before October 6, 2023. They will not face retroactive changes to their residency status or investment.

Will there be a new investment program to replace the Portugal Golden Visa program?

The Portugal Golden Visa will not end. However, the new law ruled out capital transfers and buying real estate property as eligible investment options. The qualifying investment types are job creation, company setup, artistic or cultural heritage preservation project donation, and fund investments.

Can there be retroactive effects?

Under the Portuguese Constitution, a new law cannot have retroactive effects.

What is the alternative to the Golden Visa in Portugal?

There are several alternatives to the Golden Visa in Portugal for those who want to establish residency in the country. If you have passive income, you can apply for the D7 Passive Income Visa (sometimes known as the Retirement Visa). If you are a remote worker, you can consider the D8 Digital Nomad Visa. The main difference between this visa and the Golden Visa is that they have much more stringent residency requirements.

Which Portugal Golden Visa investments are no longer available?

Golden Visa investment routes that are no longer available

• Capital transfers for €1,500,000 or more.
• Purchasing real estate.
• Investing in rehabilitating real estate properties.
• Investing in real estate in low-density areas.
• Investing in a real estate-related fund.

What is the SEF and how does it relate to Portugal residency visas?

SEF (Serviço de Estrangeiros e Fronteiras) was Portugal’s Immigration and Borders Service but has since been replaced by the Agency for Integration, Migration and Asylum, AIMA for short. This official body is designed to address and streamline immigration services such as residency visas and citizenship applications.

What is the minimum investment required for a Portugal Golden Visa?

The minimum investment required is dependent on the investment route you choose:

1. Venture Capital Funds – Capital transfers of €500,000.
2. Arts or reconstruction of national heritage – with a donation of at least €250,000
3. Scientific or technology research –  at least €500,000
4. Share capital and job creation – Incorporating or increasing a company’s share capital by investing €500,000