© Getty Images / Monique Sieben / EyeEm
Lisbon's decision to halt issuing new golden visas in return for such investments, which had given those who could pay residency status and access to the EU's borderless travel zone, was announced on Thursday by the country's Prime Minister Antonio Costa.
The step is aimed at "fighting against price speculation in real estate," the premier said, adding that the crisis was now affecting all families, not just the most vulnerable.
The 'golden visa' program had attracted €6.8 billion ($7.3 billion) in investment since its launch in 2012, with the bulk of the money reportedly going into real estate. To get Portuguese residency one had to invest over €280,000 (over $300,000) in real estate or at least €250,000 (some $268,000) in the arts. Once a person obtained residence, they were then required to spend only seven days a year in the country to maintain their right to free movement across the whole bloc.
The just-announced package of measures also includes a ban on new licenses for Airbnbs and some other short-term holiday rentals, except in remote locations.
Rents and house prices have soared in Portugal, which is currently ranked one of the poorest countries in Western Europe. In 2022, the monthly wages of more than 50% of Portuguese workers hardly reached €1,000 ($1,100), whereas rents in Lisbon alone surged 37%. All the while the country's 8.3% inflation rate has only exacerbated its problems.
It's not clear yet when the measures, which are worth at least €900 million ($962.19 million), will come into effect. According to the PM, some would be approved next month and others will be voted-on by lawmakers.
Portugal's decision follows one by Ireland, which a week earlier had scrapped its golden visa scheme or 'Immigrant Investor Programme,' which used to offer Irish residence in return for a €500,000 ($540,000) investment or three years of an annual one-million-euro ($1.1 million) investment in the country.
Meanwhile in Spain, a bill has been submitted to congress to scrap its iteration of the 'golden visa by purchase of property' scheme, as it's had a considerable impact on housing prices there, pushing nationals out of the market, especially in the big cities and most popular tourist destinations.
Introduced in 2013, the program enables foreigners to obtain a Spanish residence permit by buying real estate worth at least €500,000 in the country.
Reader Comments
Contrary to popular belief, it is not the Golden Visas, the displacement of large numbers of foreigners to Portugal, or the so-called «digital nomads», which are causing the increase in property rents or their sale prices.
It was the Government led by the former Prime Minister, Pedro Coelho, who created the Golden Visa regime, thus being responsible for the consequences of that measure, namely the eviction of Tenants, and not the Foreigners who enter in Portugal through this modality.
The increase in the value of property rents is due to the criminal, illegal, and unconstitutional «Rent Law», drawn up by the former Minister of Agriculture, Sea, Environment and Land Planning, Maria Graça – who served in the Government led by former Prime Minister Pedro Coelho – and if you simply revoking this law would put an end to the scheme.
With regard to local accommodation and Airbnb, in Portugal real estate built for housing cannot be placed for local, tourist, temporary, or short-term accommodation, it is prohibited by law, which is not being enforced nor is there any supervision.
The recent measures presented by the current Government led by the Prime Minister, António Costa, are of no use, and serve to maintain the scheme and the bad policies regarding housing implemented during the Governance of the Ex-Prime Minister Pedro Coelho.
In short, the serious housing problem in Portugal that began to emerge in 2012 was caused internally, without changing the law that regulated property rents, replacing it with another that promoted their liberalization and the absence of control, and correct assessment, the housing problem that affects the country would not have been possible.
Post-Scriptum: I neither support nor legitimize the current process of emigration - which is actually an invasion with political, economic and social engineering purposes - that they are imposing on Portugal, Ireland, and other European countries, but in the Portuguese case the housing problem it was provoked internally by the Government at the time, with the aim of being able to implement the criminal scheme that caused a serious problem in housing in my country.
Sorry about my English, keep up the good work.