Portugal's revamped golden visa scheme to boost investment funds
Portugal is no longer a route to a "golden visa" giving residency rights but foreigners who want to secure one can still put their money into investment funds, which now anticipate a boom in inflows.
The Portuguese government has tightened the rules after initially saying in February 2023 that it would scrap the golden visa scheme, which has been blamed for exacerbating a housing crisis. It had already sought to redirect property investments from big cities to depopulated areas.
The scheme, which offers wealthy non-EU nationals who invest in Portugal the right to live in the country, has attracted 7.3 billion euros ($8 billion) of funds since its 2012 launch. Most participants are from China, Brazil and the United States.
Around 90% of that money went into real estate, sparking complaints it was driving up house prices in one of western Europe's poorest nations.
The European Commission has meanwhile called for an end to such programmes, citing security risks.
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Putting money into investment funds has been an option under the Portuguese scheme since 2015, but is now expected to be its principal channel. Other routes include donating to cultural or research projects.
«Real estate has always taken the focus away from the other options,» said lawyer Vanessa Lima, from Prime Legal, which among other services helps foreigners apply for the visa.
«The main type of investment will (from now on) be in funds — there is no doubt.»
To be eligible, applicants must transfer 500,000 euros to one or more qualifying funds.
While European countries shutter Golden Visas, Italy has an easier alternative
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