Portugal Golden Visa Changes Proposed

During this week’s budget, Portuguese Parliament discussed the future of the Golden Visa programme and proposed some potential new changes. Leader of the Socialist party, Ana Catarina Mendes has suggested that the investment requirements are changed to benefit low-density areas and the autonomous regions of Portugal as opposed to the major cities of Lisbon and Porto, where most investments are currently made.

The Portuguese Golden Visa programme has helped inject billions of euros of investment into the country and boosted the average property prices year on year, but it is mostly the major cities which have reaped the benefit. Mendes’ proposal aims to encourage foreign investment into other areas of the country, relieving the pressure from metropolitan locations such as Lisbon where the demand for property is currently higher than the supply.

Nothing is official yet. Parliament will reconvene on February 6th to discuss this proposal further. Should the changes go ahead, legislation will firstly need to be written, which is likely to take several months. It has also been stated that any changes will only apply to new applications and not retrospectively. For those that have been considering investing in major cities such as Lisbon or Porto, we would suggest moving forward as soon as possible before any changes come into effect.

La Vida has a huge portfolio of real estate investment options which meet the Golden Visa requirements. To find out more and speak with one of our experts, please contact us.

***UPDATE***
On Monday 10th February, the Portuguese Parliament approved the 2020 budget, which included new laws surrounding the Golden Visa programme. Properties in major cities such as Lisbon and Porto may no longer qualify for the programme from 2021 and investors will need to purchase outside of these locations. The new legislation has not yet been published by Government but is likely to be implemented by the end of this year. If you wish to invest in Lisbon or Porto and be certain of qualifying for the Golden Visa before the law changes you will need to act promptly to beat the deadline. Purchases of property prior to the deadline are not affected.