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Portugal ends ‘golden visas’ for those buying a property in Lisbon and Porto

Portugal ends 'golden visas' for those buying a property in Lisbon and Porto

This program will continue for the sale of properties located in the interior of this country

The deputies decided to limit the so-called ‘gold visas’, residence permits for those who buy real estate of at least 500 thousand euros, to regions in the interior of the country. In this way, properties in the most valued Portuguese cities – Lisbon and Porto – are excluded from the program.

This means that only property investments in the interior of Portugal are eligible for this program, including the autonomous regions of the Azores and Madeira. Last year in Portugal, 8,207 gold visas were granted 7,735 of which were through the purchase of properties.

The measure was announced by Socialist Party parliamentarian Ana Catarina Mendes at a press conference, along with changes to income tax for foreign pensioners. She stated that the end of the granting of residence permits for investment activities (ARI) in these two large Portuguese cities “will obviously not have retroactive validity.

The Portuguese MP went on to say that a response must be given to property speculation and that the golden visa amendment has been introduced to encourage investment in inland areas and autonomous regions and to alleviate pressure from the property market in areas such as Lisbon and Porto.

This means that, now that the green light has been given to the amendment proposed in the State Budget for 2020, only those who make “investments in the inter-municipal communities (CIM) of the interior and autonomous regions, as well as those who create jobs, are entitled to the golden visa,” explained the leader of the Portuguese Socialist Party.

Portugal ends 'golden visas' for those buying a property in Lisbon and Porto

It should be noted that of the 8,207 golden visas granted since October 2012, 7,735 were for the purchase of the real estate, properties with a minimum price of 500,000 euros, of which 463 were for urban rehabilitation. Due to capital transfer requirements, the visas granted a total of 455 and 17 for the creation of at least 10 jobs.

Now that the legislation has been approved as part of the 2020 state budget, the Government should implement it before the end of the year. The full details are not yet known, but until the bill is finalized, the golden visa applications can continue to be made exactly as they are now.