Portugal is shutting down its controversial "golden visa" program that allowed investors to obtain residency permits in exchange for purchasing residential real estate worth at least €500,000.
It's one of several measures introduced last week designed to combat a housing crisis that advocacy groups say has been exacerbated by the program, Reuters reported.
But the nation's more popular — and less expensive — alternatives to the golden visa scheme are still attracting hundreds of remote workers and entrepreneurs to its shores.
In late October, Portugal launched a "digital nomad visa" that allows remote workers from non-EU countries to live and work in Portugal for up to five years. Applicants must make at least four times the national minimum wage, or approximately $3,244 a month.
Portugal approved 200 digital nomad visas in the program's first three months, according to data from the Ministry of Affairs. The majority of applicants came from the US, UK, and Brazil,local outlets reported.
Before the digital nomad visa was introduced, remote workers and entrepreneurs used the popular D7 visa (also known as the passive income visa) to receive local residency status.
One of the most affordable programs of its kind, the D7 visa requires applicants to make only €7,200 — or about $7,673 — a year to qualify. But unlike the digital nomad visa, the income must be the result of passive investment streams, such as real estate or equity in a company, as opposed to a monthly salary. Both the D7 and digital nomad visas do not permit recipients to work local jobs.
As Portugal struggles with skyrocketing rent and inflation, housing groups claim that visas like these benefit wealthy foreigners at the expense of local residents by raising the cost of living, adding that shutting down the golden visa is not an effective way to combat real estate speculation as long as similar visas still exist, per Reuters.
But proponents of digital nomad visas, dozens of which have sprung up around the world since the pandemic, argue that they have the power to attract talent and boost local economies.
Do you have a golden visa or passport? Have a tip or story to share? Email this reporter at htowey@businessinsider.com
FAQs
Is the Golden Visa Portugal ending? No, the Portuguese Golden Visa program is not coming to an end. However, as of 7 October 2023, there were significant changes to the program.
Can I live in Portugal without a golden visa? ›
How long can a US citizen live in Portugal? US citizens may enter Portugal for up to 90 days for business or for tourism without the need for a Portuguese visa. If you would like to move to Portugal and spend more than three months there, then you'll need to get an appropriate visa or a residence permit.
Is Portugal getting a golden visa for real estate in 2024? ›
Important Note: In October, 2023, Portugal's Golden Visa Program ceased to accept real estate purchases as qualifying investment options. So, any real estate investment are no longer qualified for a Golden Visa in Portugal.
Is Portugal Golden Visa a good investment? ›
The program is not blacklisted by the OECD, unlike many other Golden Visa programs. Portugal is a safe and stable country with an excellent and affordable quality of life, good healthcare and education options, well-connected airports, and the best climate in continental Europe.
What is the alternative for Portugal Golden Visa? ›
Applying for the D7 is quite a bit cheaper than the Golden Visa and is a good alternative if you want to move to Portugal and have the required passive income. You should always check the passive income with a lawyer / the SEF upfront.
How long can I stay in Portugal with a Golden Visa? ›
The Portugal Golden Residence Permit Program (commonly known as the Portugal Golden Visa Program) is a five-year residence by investment program for non-EU nationals. The residence permit gives the right to live, work, and study in Portugal and allows free circulation in Europe's Schengen Area.
Can I get residency in Portugal if I buy a house? ›
Buying property in Portugal allows you to acquire a Portugal residence permit, as long as you stay in the country for a minimum of 14 days each two years. That means you can buy a property in Portugal and get residency. Moreover, you may apply for citizenship and an EU passport five years after obtaining residency.
Can US citizens retire in Portugal? ›
You need to apply for residency in order to retire in Portugal as an American. The process is straightforward, but it may take a while. You need to provide (1) your passport, (2) proof of income, (3) proof of health insurance, (4) criminal background check, in order to apply.
Can I live in Portugal as a US citizen? ›
Yes, Americans can live in Portugal. A US citizen can enter Portugal without a visa, and stay in the country for 90 days. However, if they plan to stay for more than 90 days, they must secure a Portuguese residency permit.
Does Portugal allow dual citizenship? ›
Portugal is the best European country to pursue dual (or multiple) citizenships. Since the country allows dual citizenship, all individuals seeking to have the Portuguese passport will not have to abdicate their original nationality.
11 Cheapest Golden Visa Programs in the EU and Caribbean
- Malta Permanent Residence Programme — €150,000.
- UAE Residence Visa — $204,000.
- St Kitts and Nevis citizenship by investment — $250,000.
- Greece Golden Visa — €250,000.
- Portugal Golden Visa — €250,000.
- Italy Golden Visa — €250,000.
Portugal tops a global ranking of best residence-by-investment programs, despite recent restrictions. Portugal continues to offer the best golden visas in the world.
What are the disadvantages of Golden Visa? ›
The benefits of obtaining a golden visa include residency, education, healthcare, tax benefits, and investment rewards. Downsides to a golden visa include investment risk, political instability, and tax implications, among others.
How much does a lawyer cost for Portugal Golden Visa? ›
Legal fees will usually fall somewhere between €10,000 to €30,000 for an applicant and three additional family members.
What is the new nationality law in Portugal 2024? ›
As of the entry into force of the new changes to the Nationality Law, descendants of Portuguese Sephardic Jews will now have to prove their connections to Portugal and, especially, to prove their legal residence in Portugal for a period of at least 3 years.
What is the new visa for Portugal 2024? ›
To move to Portugal and gain residency in 2024, individuals can opt for the Golden Visa by making a qualifying investment. Another option is the HQA visa for those who qualify or the D7 visa for those who don't mind long stay requirements.
Is Portugal ending the Golden Visa program after surge in home prices? ›
In 2023, the Portuguese government promised that, with the “end” of the Portugal Golden Visa, all would see a drastic improvement to the Portugal housing crisis and a surge in property opportunities, whether to purchase or rent. News stirred around the globe on this, and Portuguese locals hoped this promise would come ...
Is Spain getting rid of Golden Visa? ›
Spain is getting rid of its controversial “golden visa” scheme, which gave residency to foreigners who invested significant sums in Spanish real estate. The move aims to ease housing shortages and make homes more affordable for local residents.
What is the Golden Visa for Europe 2024? ›
Portugal amended its scheme in October, removing real estate investment as a basis for golden visa applications in the hope of reducing property speculation. In the same month, the Netherlands announced it will end its golden visa scheme in January 2024. Spain has announced plans to follow suit.
