LISBON – Portugal is set to revamp its Golden Visa scheme, to allow affluent foreigners seeking residency to invest in affordable housing for locals or accommodation for migrants.
Cabinet Affairs Minister Antonio Leitao Amaro said on Tuesday that the proposed scheme dubbed “solidarity visa,” is designed to complement the existing golden visa program.
The existing Golden Visa program has been in place since 2012 – a visa that grants residency rights to non-EU nationals in exchange for investment in Portugal.
The Golden Visa has been successful for the country as it attracted over 7.3 billion euros ($7.94 billion) in investments though the authorities have faced criticism for the visa type as it worsened the housing crisis.
Under the revamped scheme, purchasing real estate, which was previously the preferred route for foreigners, is no longer an option. Instead, investors can contribute to funds, donate to cultural or research initiatives, or create job opportunities.
“We have not altered the existing scheme, but we have introduced these two forms of solidarity visa,” stated Leitao Amaro in an interview with Reuters.
One aspect of the proposed solidarity visa encourages foreign investors to pump funds into affordable housing accessible to residents, while the other focuses on constructing accommodations for migrants in need or financing projects promoting integration.
Portugal is currently home to approximately 800,000 migrants who contribute significantly to the economy but face challenges such as precarious employment and lower wages.
Skyrocketing rents and property prices, fueled in part by a burgeoning tourism sector in cities like Lisbon and Porto have triggered problems for migrants.
As far as the Golden Visa scheme is concerned, one needs to transfer between 250,000 to 500,000 euros to qualify for the visa. On the other hand, Leitao Amaro noted that the government has yet to determine the investment threshold for the new solidarity visa.
The minister; however, emphasized that it would need to be lower than other options to incentivize investor participation.
