Portugal ends GV program after surge in home prices

Portugal will end its Golden visa program for new foreign property buyers as it tries to address the lack of affordable housing in one of Western Europe’s poorest economies.

To fight real estate speculation, Portugal will “eliminate the issuance of new golden visas,” Prime Minister Antonio Costa said at a press conference in Lisbon on Thursday following a cabinet meeting. Foreign real estate buyers who wish to renew their existing golden visas will only be eligible if their properties are used as their own home, or if these units are placed in the long-term rental market, he said.

The Golden Visa program (ARI - Residence Permit for Investment Activity), was conceived a decade ago for non-European Union nationals as part of an effort to fix the country’s public finances following a 2011 bailout from the European Union and International Monetary Fund.

Thanks to the country economic uncertainty and a search for foreign investment, Portugal was compelled to go into the GV route to raise capital for its starving economy. The country raised €6.8 billion ($7.3 billion), with 90 percent of that money going into real estate, according to the Portuguese Immigration authorities - SEF (Serviço de Estrangeiros e Fronteiras) - the Foreigners and Borders Service.

However, the program had long been embroiled in controversy and had gained even more bad press with the growth of housing challenges, with allegations that it endorsed real estate speculation and contributed to rising prices in the real estate market, as it empowered non-EU foreign nationals seeking a pathway to EU citizenship to invest in housing and consequently obtain a residence visa.

Prime Minister Antonio Costa ended the Golden Visa program with an aim of ending real estate speculation in the country.

The government will end the “granting of new ‘golden visas’“, Portuguese Prime Minister Antonio Costa told journalists in Lisbon post cabinet meeting that was exclusively dedicated to the housing issue. “As for ‘golden visas’ already granted, … there will only be scope for renewal if they are for the owner’s own and permanent residence and that of their descendants, or if the property is placed on the long-term rental market,” Costa explained.

It may be recalled that in November 2022, Costa had already indicated that his government could end the golden visas, saying the program “is no longer justified.” In 2021, his administration began restricting the permits and excluded property purchases in cities like Lisbon, where home prices more than doubled since 2015 to €3,805 per square meter.

Real estate pundits have criticised the government for ending the lucrative scheme arguing investors will take their money and invest in another country where they can get a golden visa.

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