Belion Partners  - Residency and Investment expert in Portugal

An Overview of Portugal's Golden Visa Amendments of March 30th 2023

Mar 31, 2023

The Portuguese Government announced the Habitation legislative package measures yesterday, which have been developed with the involvement and feedback of both private and public entities during a public hearing period.

While the precise wording of the law endorsed by the Council of Ministers has yet to be made public, the Prime Minister stated the following during the press conference on the Golden Visa program:

“Since 2012, the special regime for the Golden Visa has granted a total of 11,758 residence permits in our country. However, our experience over the past 11 years has revealed that this regime is unjustified, primarily due to the fact that 89% of the investment made under the program has been in real estate, resulting in the creation of only 22 jobs out of the 11,758 permits issued. As a result, there is no valid reason for this type of residence permit to continue being granted under a special regime, and it should instead be governed by the general law.

In order to ensure the security of those who have already been granted visas and their subsequent renewals, we have made the decision to convert their residence permit into a regular permit, similar to that of any other foreign national living in our country, at the time of renewal, provided that they meet the existing renewal criteria.

Pending examination processes will be handled in accordance with the general law, which includes provisions for the granting of residence permits for business investment purposes, as well as cultural or scientific research activities. These processes will continue to be subject to the same guidelines and regulations as before.

Consequently, all pending processes will be scrutinised in compliance with the applicable regulations and will require endorsement from entities like AICEP, Banco de Fomento, IAPMEI, the National Innovation Agency, or the Ministry of Culture to attest their economic, scientific, or cultural significance.

This results in a general regime where everyone is treated equally under the general law, ensuring that legal security is not compromised”. 

According to the summary released, the document outlines the following point: “termination of the special regime for granting Golden Visas, while maintaining the eligibility for residency permits for investment under the general regime”. 

If passed, the new policy will operate as follows:

  • Starting from February 16th, 2023, new Golden Visas will no longer be granted 
  • For those who have applied for Golden Visa but haven't received them yet, their pending applications will be processed under the residency permit system for immigrant entrepreneurs, regardless of whether they are pending with SEF or undergoing prior control procedures in municipalities.
  • For those who have already received Golden Visa and are due for renewal every two years, their permits will be converted to immigrant entrepreneur permits, subject to fulfilling all requirements, and after thorough evaluation by the competent authorities to confirm the progress of their entrepreneurial projects.

 

The statements mentioned above suggest several conclusions:

Firstly, the current situation appears to be largely unchanged since the Prime Minister's initial announcement on 16th February, as although a proposal has been submitted, it has yet to be ratified or implemented, and the Immigration Office is still accepting the submissions of new applications. 

Secondly, the government plans to eliminate Portugal's Golden Visa special regime, but will still welcome foreign investors through other channels that prioritise the economic, scientific, or cultural value of their investments. 

Thirdly, no specific provisions for the renewal of permits based on real estate investment were mentioned this time. 

Fourthly, the government seems to be considering converting existing Golden Visas into resident permits for entrepreneurs (D2), while emphasising the retroactive impact of the upcoming legislation. 

And lastly, when asked about the timeline for the new regulations to take effect, the Prime Minister deferred the matter to Parliament.

 

At present, the entire industry is eagerly awaiting the exact phrasing of the legislation, which will be submitted to the Portuguese Parliament for consideration and possible amendments, most likely after the Easter break. Following this, the bill must be forwarded to the President of the Republic.

It is expected that deliberations among the political parties in Parliament will lead to some revisions, including the details of the conversion process of Golden Visas into other immigration programs, as well as the alternative investment schemes that will allow individuals to acquire a residence permit.

 

We will remain attentive and keep a close eye on the situation to ensure that our Clients and Partners are kept up-to-date on any future developments.

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