The Prime Minister of Portugal recently announced that measures will be implemented to change the Golden Visa program.

He hinted that the program may be discontinued for new applicants, and that existing Golden Visas will only be renewed if certain conditions are met.

Lets break down the potential end or significant change to Portugal’s Golden Visa program and what it means for investors.

Disclaimer: All information published on this website related to Golden Visa issues is for general purposes only and does not constitute legal advice in any form or intended as legal advice. ATT Signature is not a law firm nor does it intend to be a substitute for any legal advice.

Understanding the Potential Changes

There is currently a sense of surprise and uncertainty surrounding the potential changes to the Golden Visa program, given the contradictory and technically inaccurate statements made about housing. It is important to analyze the objective data in detail and approach any new information with caution.

Key Procedural Facts

It should be noted that the government does not have the legislative power to make changes to the Golden Visa program, as the assembly of the Republic is responsible for approving any proposed changes. A proposal outlining the measures will need to be submitted to the assembly for voting, followed by a one-month public hearing. The proposal will then be sent to Parliament on March 16th, and approval should take between 15 and 20 days. The President will then react by either ratifying the proposal, returning it to Parliament for amendment, or asking the Constitutional Court to evaluate it.

While the governing party holds the majority and can approve the measures without changes, other parties may propose alternative wording during public hearings that could influence the final wording of the law. If some of the proposed measures are approved, it may also require changes to other immigration programs such as the D7 Visa or Digital Nomad Visa, which could affect standard residence permits. The Government aims to renew existing Golden Visa cases while adding extra requirements to address the housing issue.

Assumptions in regards to the Points Above

Based on the points mentioned above, it is expected that the current law will remain unchanged for at least 45 days as of February 16th, 2023. However, the exact content of the final amendments to the law remains unknown to both the Government and the Parliament, and there is a high risk of the program being completely terminated in the short-to-medium term. The timing of the implementation of the amendments has not been announced yet. While there was room for interpretation that the residency program may still exist in some fashion, it remains uncertain.

Possible Consequences

The potential changes to the Golden Visa program could result in a rush of applications before the changes come into effect, legal action against the State to avoid the changes to the program, renegotiating ongoing investments to fit other residency programs in Portugal, withdrawing ongoing Golden Visa cases en masse and seeking compensation from the State.

Navigating Through the Transition Period by Securing Your Investment

If you are considering applying for a Portuguese Golden Visa before the changes come into effect, it is important to note that we have navigated through similar changes before in 2021 (the last significant changes of Golden Visa were implemented on January 1st, 2022.)

You can get in touch with us to discuss how we can help you navigate your application before any changes take place.