The Portuguese government’s restrictions on the Golden Visa program in major urban centers such as Porto and Lisbon will be in place by the end of 2020.
Earlier this year, the Government decided to attract more investment in low-population areas by removing Lisbon and other major cities from the Golden Visa program.
This restriction was put in place in the State Budget for 2020, in the form of a legislative mandate to the Government but delayed due to disease. The government will now accelerate the application of this restriction in accordance with the Prime Minister's clear directive, in order to honor agreements with BE (Leftist Political Party) and PCP (Portuguese Communist Party) for the Budget. Government for 2020. This bill is expected to be officially applied this year.
With the new changes, foreign nationals intending to apply for a Portuguese residence permit by investing in real estate will have to focus on the countryside, instead of large centers like Lisbon, Porto or other coastal area (where most of current investments are concentrated).
On the other hand, the minimum value of required investments will be increased. The law requires the purchase of real estate with a value equal to or greater than 500,000 euros. Otherwise a 30-year-old building, located in the urban rehabilitation zone, must be purchased for a total of 350,000 euros.
For other types of investments for Golden Visa will continue to be made everywhere in the country. These are investments in research, supporting art creation, and even job creation.
Ms. Ana Catarina Mendes, Head of the Portuguese Social Party said: “If the investor has submitted a Golden Visa at the time of the new law, the application will still be considered for approval without being affected. . " This is the last chance for investors to own real estate in Lisbon, Porto and get a Portuguese permanent residence card for a family of three generations with just 350,000 euros.
Considered as the tourist mosques of Europe, Lisbon, Porto are a city of many business development opportunities for investors. Two cities can generate long-term, short-term investments, and generate higher returns than regions.
On the other hand, the minimum value of required investments will be increased. The law requires the purchase of real estate with a value equal to or greater than 500,000 euros. If not, a building over 30 years old, located in the urban rehabilitation area, a total of 350,000 euros.
For other types of investments for Golden Visa will continue to be made everywhere in the country. These are investments in research, supporting art creation, and even job creation.
According to APPII (Portuguese Association of Real Estate Investors and Developers), 94% of visas have been issued since the Golden Visa program started in relation to real estate investments. 88.6% of them are related to property valued at more than 500,000 euros. 97% of that investment is made in the country's main cities, located on the coast.
Investment restriction does not guarantee the increased interest of investors in rural areas. It may even cause investors to look for other countries. According to APPII, the termination of the Golden Visa program in Lisbon and Porto could lead to a loss of 700 million euros per year, including 85 million in direct taxes to the State.
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