Is Portugal ready to cancel the golden visa revocation?

The Portuguese Socialist Party, which has a parliamentary majority, has proposed amending the Mais Habitação (More Housing) bill in order to preserve the golden visa program. This is a significant change from the party's original plan, which called for the program to be abolished in February 2023.

The new proposal states that investments in real estate and investments through deposits and similar instruments will not be subject to the golden visa program. However, the government proposes to retain the following investment options:

• job creation (with or without company formation) of at least 10 jobs;
• investment in scientific research - 500,000 euros;
• investment in cultural and artistic fields - 250,000 euros;
• venture capital funds - EUR 500,000;
• or business projects that support or create five jobs.

Voting on the proposal is expected in the coming days, with a most likely date of July 19.

The Portuguese Socialist Party's proposal to maintain the golden visa program despite initial plans to make significant changes is generating interest. They seem to have found a compromise by removing real estate and some capital investments from the list of permissible options.

The anticipated changes, especially the removal of real estate from the list of permissible investment options, are likely to affect wealth management strategies for individuals seeking residency through investments. The removal of real estate from the list of options for the golden visa is likely aimed at addressing rising housing prices and its impact on local communities. At the same time, the emphasis on job creation and investment in scientific or cultural fields in the proposed modified version of the golden visa program points to a potential shift in investment strategies for wealth managers.

Will have to assist clients in identifying and assessing opportunities in these sectors to meet the requirements of the program.

The announcement by a Blevins Franks spokesperson that the cancellation of the gold visa program in Portugal was simply announced in February, without providing an explanation or details, left advisors in the dark. If these rumors are confirmed, it looks like the program may be preserved in some form.

The proposal to retain the golden visa program in Portugal, albeit with the exclusion of real estate and deposit investments, but retaining investments in job creation, research, cultural investments and venture capital funds, shows recognition of the tremendous value of the program and that there is still much that can and should be developed in it to achieve significant economic benefits for Portugal.

The proposed change makes sense. One of the main reasons for the cancellation of the golden visa program was the impact on real estate prices in Portugal. The removal of real estate is likely to be welcomed internally but only allows immigrants with golden visas to choose from a limited number of options, although D2 and D7 visas are still fully available. The impact on the number of immigrants is likely to be negligible, but there is still a short period in which to apply for a golden visa under the current conditions. Those considering a golden visa should act quickly.