Portugal government has finally gazetted the law ending all real estate investments for golden visa program. The Law 56/2023 has been published in official journal of Portugal – Diario da Republic on Oct. 6, and will come into force tomorrow. The Government has made decision to housing measures last year, saying the GV scheme has already served its purpose to economic recovery, and decided to scrap real estate investing to foreigners for the purpose of GV, to avoid a rising property costs, amidst crunch in Portugal. The Golden visa program has a chequered history since its inception in Oct 2012 and has been touted as a mega success bringing 7 billion euros invested mostly in property sector.
According to the new law,
- Revocation of residence permits for real estate investments under Golden visa regime (ARI)
- Provide more affordable housing in Portugal.
- Tax incentive and support measures for Leasing.
- Regulation on evictions on leasing between tenant and landlord.
Effective tomorrow, under the new rule, the new investments are eligible for Portugal golden visa with the exception of real estate investments involved.
• Job creation – Establishment a limited company and creating at least 10 sustainable jobs in Portugal.
• Research – Investment of €500,000 to an accredited public or private institution involved in qualifying scientific research.
• Art & Culture – Investment of €250,000 to an accredited institution within artistic production, or cultural heritage.
• Investment fund
– Investment of €500,000 in an investment fund or venture capital fund.
– Investment of €350,000 in an investment fund or venture capital fund. (Low density regions at 20% discount from major cities)
• New/Existing companies – Investment of €500,000 in a new company headquartered in Portugal with a creation of five new job positions or a capital injection in an existing company of at least 10 existing job positions.
The Good news for foreign investors is Portugal golden visa is not closing anytime soon. Portugal is still the best golden visa scheme in Europe, that will lead to EU green card and citizenship after 5 years with minimum residence requirements (just 1 week in first year and 2 weeks in second year). Family members also qualify for residence permits. The Government is also pursuing ending Non-habitual tax regime by 2024.
