The Portuguese government has declared that the country’s residence-by-investment scheme will be discontinued. The country’s protracted housing crisis, which has resulted in skyrocketing housing costs while maintaining stagnant earnings for Portuguese workers, has pushed the decision.
Portugal Terminated Its Golden Visa
With the end of golden visas, here’s everything to know about it:
1. According to SchengenVisaInfo.com, rental costs have risen by 37% in 2022 alone, making it nearly impossible for many citizens to afford a place to live.
2. The situation has compelled the government to abolish the golden visa and take effective measures like stopping short-term rental licences in Portugal’s urban cores. It aims to increase Airbnb rentals that have increased rents on existing housing units of residence. It will also reduce the amount of housing stock available to city residents.
3. The government also intends to approve using commercial properties as residences without a permit. The state also intends to make land accessible for the construction of projects for low-cost housing.
4. Also, a proposal to lower the tax on rental income from 33% to 25% has been discussed by the authorities.
5. The chance to pay rent after three months of non-payment is one of the initiatives that the Portuguese government has implemented. It is believed that this policy will boost the rental market.
6. The government will provide a sum of €200 in an effort to assist families who spend 35% of their income on housing.
7. According to the Prime Minister, in the case of the golden visas formerly granted, there will only be room for renewal if the residences they have bought are intended to be their primary residence or the primary residence of their children, or if the property is placed permanently on the rental market.
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This Programme Was Launched In 2012
Data from SEF, the Portuguese Service for Foreigners, shows that since the golden visa program’s launch in October 2012, over €6 billion has been invested in Portugal through this residence by investment initiative. A total of 11,535 investors and an additional 18,809 family members have profited from this programme.
Moreover, 920 golden visas for capital transfer investors were approved. In total, 10,593 applications, or 92% of all applications, were for real estate investments.
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