"When Portugal suspended Golden Visa eligibility for residential real estate in Lisbon and Porto in October 2023, industry observers predicted the program's decline. Headlines proclaimed "Portugal Golden Visa Dead" and "End of European Investment Residency." The program's actual data tells a different story. Golden Visa applications increased 18% in 2024. Fund investment applications surged 42%. Commercial real estate applications rose 28%. Far from dying, Portugal's Golden Visa evolved - and in doing so, became more strategically aligned with both investor interests and national policy objectives."
"Portugal launched the program in 2012, emerging from the European debt crisis with an economy in tatters, unemployment near 18%, and desperate need for foreign capital. The original program offered straightforward paths: invest €500,000 in residential real estate, €1 million in capital transfer, or create 10 jobs, and receive a residence permit leading to citizenship. It worked spectacularly. From 2012-2023, Portugal approved over 11,000 main applicants, generating €6.8 billion in investment."
"Therein lay the problem. While foreign investment fueled economic growth, it priced Portuguese citizens out of their own cities. A one-bedroom apartment in central Lisbon that cost €150,000 in 2012 reached €400,000+ by 2023. Local wages hadn't tripled. Political pressure mounted to redirect Golden Visa investment away from residential speculation toward productive economic contribution."
Portugal introduced the Golden Visa in 2012 to attract foreign capital during a deep economic crisis, offering routes via residential property, capital transfer, or job creation leading to residency and eventual citizenship. Between 2012 and 2023 over 11,000 main applicants generated €6.8 billion, transforming Lisbon and Porto but driving steep housing inflation that outpaced local wages. Political pressure prompted the October 2023 removal of residential eligibility in Lisbon and Porto, and 2024 data show application growth overall, with substantial increases in fund and commercial real estate investments, signaling a strategic shift toward productive investment.
Read at Business Matters
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