The Portuguese government’s proposal to halt new residence permits for investment in housing has gained support in the Assembly of the Portuguese Republic. The decision, part of the More Housing Program, aims to tackle housing issues and regulate the real estate market.

In a significant development, the Portuguese government’s proposal to terminate new Golden Visa and Investment based residence permits in housing has gained support in the Assembly of the Portuguese Republic.

It is worth noting that the Golden Visa Program was terminated on February 16 as the country looked to address a housing shortage. The programme, however, has been extended further, and new applications are still being accepted.

Termination of Golden Visa Program

The decision to halt the issuance of resident permits in exchange for investment, commonly known as the golden visa program, was a key element of the More Housing Program.

Introduced by the government earlier, the program aimed to address housing issues and regulate the real estate market.

Under the newly implemented law, new applications for residence visas linked to investment activities will no longer be accepted. However, individuals with previously granted authorizations will still have the possibility of renewing their permits.

Impact on Pending Applications and Family Reunification

It’s important to note that the law applies to new requests and renewals, including those that were pending prior to the law’s implementation, and are subject to control procedures by Municipal Councils.

An additional outcome of the newly adopted limitation is the exclusion of granting or renewing residence permits for family reunification.

Assessing the Impact and Financial Perspectives

On February 16 of this year, Portugal officially terminated its Golden Visa scheme, a move aimed at addressing the housing problem in the country.

Although the abolishment of the program, which granted residency to wealthy foreign nationals making financial contributions to Portugal, was expected to have a limited impact on the residential market, a report by financial services company DBRS indicated otherwise.

According to the report, “The end of granting new golden visas concludes a program that was developed in a difficult period for the country. The decision should have a limited impact on the residential market, as it was not a decisive driving force in terms of transactions, either in terms of volume or in terms of value for the country as a whole.”

However, an earlier report from the Portugal News highlighted that the termination of Portugal’s Golden Visa scheme resulted in the cancellation of an €800 million residential tourism project, which would have brought €4.8 billion to the country.

European Perspective on Golden Visa Programs

It is worth noting that several countries in Europe continue to offer wealthy foreigners the opportunity to acquire residency through their Golden Visa programs.

Conclusion

As Portugal moves forward with its decision, the implications of terminating the Golden Visa program will undoubtedly shape the country’s real estate market and foreign investment landscape in the coming years. The support received from the Assembly of the Portuguese Republic further solidifies the government’s commitment to tackling housing issues and regulating the real estate market.