How and why the Portuguese Golden Visa Program will change in 2020 and 2021?
Published at: 26/02/2020 12:00 pm
Until the end of 2020, the process of the Portuguese Golden Visa (ARI - Residence permit for investment activity) will remain the same. However, in 2021, according to the central-left government's objectives, the investors must purchase the real estates in the countryside instead of Lisbon and Porto. And we don't know what will happen with the properties in Algarve (beautiful Mediterranean seasides)
First of all, only the real estate purchase option will change. The other options, as creating jobs or forming companies to invest in Portugal, still can be registered in Lisbon and Porto. Regarding the real estate option, nothing changes in 2020. From 2021, according to the current budget, the Parliament limited the scope of the real estate purchase option to the countryside and the autonomous regions of the Azores and Madeira.
Why the legislators changed one of the most popular EU residency by investment programs?
The Portuguese Golden Visa (Autorizações de Residência para Atividade de Investimento - ARI) became so successful that it distorted the local housing market. The housing costs increased very fast in the city centres of Lisbon and Porto. The real estate prices first doubled and during the last years almost tripled from the post-financial crisis level. If a flat had a price tag of 150,000 euros now, it worths nearly 500,000 euros (or even more) in the most fashionable downtown districts. However, as Lisbon's and Porto's centres were full of abandoned buildings, the fast inflow of the capital and the foreign investors who accepted only high-quality property products helped to revitalise the urban areas. As a result of the over-successful program, residents were slowly forced out of the market. And the process caused social tensions. The politicians had to make a choice, and they want to drive the attention of the investors to other beautiful and more affordable cities and the islands of Portugal.
Moreover, the Parliament also restricted the zones where they allow to register new local accommodation facilities for short-stay visitors. Meanwhile, the Portuguese Tourism Confederation (CTP) alerted the legislators, and they stated that the amended option would hurt Lisbon's and Porto's tourism industry.
Do you have to hurry if you want to purchase and refurbish real estate in Lisbon to get a Golden Visa?
It looks like that all the interested foreign applicants intend to buy real estate under the most affordable refurbish option in 2020. We are constantly looking for the best investments in Lisbon an Porto. The prices are increasing very fast in the central neighbourhoods of the big cities. However, Portugal offers so many beautiful seasides, cities and villages, loved by the tourists. Take a look around, and we can help you to find the best investment for your EU residence permit. Click here for the detailed information about the ARI - Portuguese Golden Visa!