Portugal’s Golden Visa program has long been a sought-after pathway for individuals looking to obtain residency through investment in the EU. However, recent developments have brought forth proposed changes that could significantly impact wealth management strategies and investment opportunities in Portugal. The Portuguese Socialist Party (PS) has put forward a proposal to amend the Mais Habitação (More Housing) Bill, aiming to keep the Golden Visa program open with certain modifications. One of the key changes is the elimination of real estate investments and capital investments through deposits and similar instruments.
The recent amendment supports maintenance of the Golden Visa program through the following types of investment:
- Creation of at least 10 new job positions
- Investing in venture capital funds
- Establishing a company with a minimum share capital of 500,000 Euros and generating 5 new jobs
- Investing a minimum of 500,000 Euros in scientific research
- Supporting artistic production, preservation, or restoration of national cultural heritage with a minimum of 250,000 Euros
These proposed amended requirements are much stricter in comparison to the current Golden Visa scheme which allows for the granting of permanent residency in Portugal through real estate investments and other capital investments.
The abovementioned amendment to Draft Law 71/XV/1 is positive, since the termination of the Golden Visa program would prevent the attraction of foreign investment (at a time when the Euro-zone is expected to fall into a recession) and, on the other hand, does not affect the intended political effect of the new law which is to support access to affordable housing.
It is expected that this amendment will be approved by the Portuguese Parliament and will be included in the final version of the law, resulting in the maintenance of the Golden Visa program. It is important to also note that applications submitted prior to the enactment of the new law will be fully processed, and renewals will be guaranteed.
For more information on this news alert, please reach out to the EMEA@tandslaw.com team.
