The End of Portugal's Golden Visa – And the Best Alternatives

A Golden Visa is essentially an immigration scheme that allows high-net-worth individuals to obtain a residence permit in another country by purchasing real estate or making a significant financial investment.

What is the Portugal Golden Visa?

The Golden Visa (also known as the Golden Resident Permit Program – GRPP) has been a popular option for non-EU citizens looking to settle in Portugal for years. It allows non-EU nationals and their families to live in Portugal and travel freely across much of Europe.

The program came with several distinct advantages: travel throughout the Schengen Area, the possibility of applying for Portuguese citizenship after five years, the ability to include family members, and various other benefits.

However, following a package of measures presented by the Portuguese government on 16 February 2023, the Golden Visa program in its current form is coming to an end.

What is in the Portuguese Government's Measure Package?

In this package, the government announced that the Golden Visa program will be terminated. This announcement was made in the context of several other measures designed to combat the current housing crisis and tackle speculation in the real estate market. However, the exact conditions and exceptions remain unclear.

While there is no precise timeline yet, transitional provisions are expected to be introduced for applications and investments that have already been made.

Important: These changes do not affect the NHR Tax Regime (Non-Habitual Residence Program).

The government's plans are currently under public discussion. On 16 March 2023, the Council of Ministers will meet again to present the final version of the package.

The bill will then go through the traditional process of a general vote, followed by discussion and amendments in several phases. Only after all procedures are concluded can the legislative proposal be sent for publication and subsequently enter into force. Since different areas have different deadlines, various measures within the law may come into effect at different times. While many questions remain open, one thing is certain: the Golden Visa program will no longer exist in this form.

What Are the Alternatives to the Portuguese Golden Visa?

The Golden Visa is just one of several residence permits available in Portugal. Depending on your plans, other permits like the D7 Visa might make sense for you.

Update from 19 April 2023

Update on the Golden Visa Bill

The draft bill for the Golden Visa program is now ready. What does it say?

The program is expected to end on the day the new housing law comes into force, likely at the end of May. Source

1. In our interpretation, Golden Visa applications will be accepted up until the day the law comes into force. The government's previous announcement, stating they could not guarantee that applications submitted after 16 February would not be annulled, is now obsolete.
2. The condition requiring you to stay in Portugal for at least 183 days per year to obtain a D2 Visa has been removed for Golden Visa investors who are forced to convert their current permits to a D2 Visa due to the termination of the residence-by-investment program.
3. Golden Visa holders who will soon receive a D2 Visa will still only be required to spend seven days in Portugal.
4. The termination of the Golden Visa has no impact on the rights of applicants and their families who already hold the relevant residence permit; current regulations regarding the minimum stay in Portugal continue to apply.
5. Family reunification applications should continue to be processed, even if submitted after the program's termination date.
6. Individuals wishing to invest in supporting "artistic production and the recovery or maintenance of cultural heritage" will continue to receive visas, provided they obtain an investment confirmation from at least one of the following bodies:

• The Portuguese Agency for Investment and Foreign Trade
• The Development Bank
• The Agency for Competitiveness and Innovation
• The National Innovation Agency
• The Office for Cultural Strategy, Planning and Assessment
• Other authorities deemed suitable

Important: The bill may still be amended during parliamentary debates and could end up with slightly different conditions.

The Alternative to Portugal: Malta's Golden Visa

Malta also offers a Golden Visa for residence by investment and citizenship. Applicants can enter the Golden Visa program through a government contribution starting from at least €98,000 (plus property investment and donation).

The advantage: Golden Visa holders do not have to live in Malta to maintain their visa. After five years, you can also apply for citizenship, provided the naturalisation requirements are met. Furthermore, holders of the Malta Golden Visa can travel visa-free within the Schengen Area, keep their existing citizenship, or acquire dual citizenship.

There is also an option to apply for citizenship after one year if you invest €750,000 in a national development fund approved by the government. You can also obtain citizenship after three years with an investment of €600,000 in a state-recognised national development fund.

A major advantage of the Maltese program is that, unlike the situation in Portugal, the Maltese government has no plans to end its Golden Visa program.

If you have questions about either of these Golden Visa programs, my team of experts is available to review your case individually. Briefly describe your situation, and we will get back to you as soon as possible: https://philippsauerborn.com/en/kontakt/