LISBON - Despite the closure of Portugal's Golden Visa, hopes are still alive that the facility might not be all over for the billionaires who search for residency through investment.
The latest development, in this case, is that new amendments to the Mais Habitacao (More Housing) Bill aim to maintain the Golden Visa scheme open. Interestingly, the bill has been proposed by Portugal’s Socialist Party which holds the parliamentary majority.
The recent amendment of the Socialist Party implies that the Residency by Investment Scheme might be amended instead of being abolished, as it was previously proposed.
According to the International Adviser report, the new proposals include the removal of investments of a real estate nature as well as a capital investment through deposit and other instruments as a pathway to secure a Golden Visa.
Nonetheless, it has been proposed to keep the following investment options: job creation options, investment in scientific research (€500,000), as well as those in cultural and artistic areas (€250,000) and venture capital funds (€500,000) or business ventures that keep or create at least five jobs.
A vote regarding the recent changes is expected to be scheduled in the following days and if approved, it would give a sigh of relief to the businessmen who had found Portugal's Golden Visa scheme attractive.
Experts say that by abolishing real estate as an investment option for the Golden Visa scheme, the government of Portugal is likely to address concerns about increasing housing prices and the effect on local communities which was quoted as a key reason for abolishing the scheme.
Portugal's Golden Visa scheme attracted citizens from across the world as the country increased the investment made through it by 42 percent.
Investment raised through golden visas in 2022 amounted to €654.2 million which is a sharp increase from the previous year. According to a media report by Portugal's leading news agency 1,281 Residence Permits for Investment (ARI), also known as golden visas were granted in 2022.
Portugal’s Golden Visa scheme, also branded as Residence Permit for Investment (ARI), allowed wealthy foreigners to secure residency in the country if they made a significant financial contribution; however, when it opened the doors to unlawful affairs, authorities decided to scrap the scheme altogether.
Portugal became the second country after Ireland to do away with the Golden Visa scheme despite the fact that Portugal saw a total of 41.9 per cent increase in investments through this programme last year.
Some say that the scheme was ended due to surge in the prices of real estate and housing rents which made it difficult for locals to secure any place. Portugal is now envisioning a mechanism to regulate rent increases and will offer tax incentives to landlords who convert tourism properties into houses for locals to rent.
Meanwhile, authorities in EU countries have repeatedly pressed all European countries that offer Golden Visas to suspend the programme.