Important changes in Portuguese Golden Visa scheme that may be applied from January 2021, Lisbon, Porto and coastal will be a restricted areas for real estate investments.
This could be the last chance to invest in Lisbon and coastal areas.
Earlier the government has announced that no new changes will be implemented until the end of 2020.
State Budget Legislative Proposal for 2020 which was discussed in the Portuguese Parliament was approved on February 4, 2020. Government has approved the Decree Law No. 14/2021 entering into force on Jan 1, 2022.
Under the new changes proposed
- Real estate investments will increase to 500,000 euros in inner regions of Portugal (no longer possible to invest in Lisbon/Porto) only allowed when the dwellings are located in the Autonomous Regions of the Azores and Madeira or in inland territories.
- Capital transfer investments (bank deposits or bonds) will increase to 1.5 million euros.
The Property developers have warned this measure could cost 700 million euros per year to the Portuguese economy especially during pandemic times, when more investments are expected into the country.
The Real estate promoters and developers association (APPII) has proposed one year transitional period to the government before this law is implemented. RPII has also suggest to increase the golden visa investment ot €650,000 instead of €500,000
If the legislation is approved, Visas will only be granted to those who invest in inland regions.
Portugal also faces an increased pressure from European Union to end golden visa scheme against the backdrop of money laundering, tax evasion and corruption allegations.
Below is the map showing government proposal for law changes and inner regions eligible for real estate investment excludes major cities Lisbon, Porto. Algarve and coastal areas not confirmed yet.
Credit: Belion Partners
The Portugal golden visa scheme is the main driving engine of real estate sector, which represents 15% of the national GDP.
The Golden Visa scheme brings 700 million euros every year plus contributes 85 million in revenue for the State in direct taxes
From 2012 to 2020, SEF statistics shows, a total of 5.5 billion euros have been invested through gold visas. A total of 8,700 residence permits have been issued to real estate investments.