Changes to Portugal’s Golden Visa
There is still time to invest on the coast26th Mar 2021
Portugal’s Golden Visa citizenship by investment programme is one of the most accessible ways of obtaining Euro citizenship. And a nice place on the Atlantic or Mediterranean coast is an added bonus – or at least it was until the Portuguese government amended the legislation to exclude coastal properties and properties in the main cities of Porto and Lisbon.
Investment where it’s needed
The reason is not hard to see. The thinking behind the Golden Visa scheme is to attract investment into the country – specifically into underdeveloped and/or underpopulated regions. So, the fact that the majority of potential citizens have chosen to invest in areas that are already popular is a tad counterproductive. In theory, the new regulations were to come into force in June this year, with just a bit of a window during which you could still invest in existing developments.
A lifeline, and a bit more time
But recently the government extended the window period – probably due to the effects of the COVID-19 pandemic – until January 2022. That sounds like quite a long time, but the knock-on effect is that this will discourage developers from building in these prime areas, so the available stock will decline rapidly over the next 10 months, and the prices are likely to climb as demand exceeds supply. So, if you are thinking of obtaining a second passport and/or an investment property or second home, you should move quickly.
The Golden Visa programme will continue
The changes to the legislation are only about where potential citizens may invest, and there does not seem to be any risk that the programme will end in the near future. It’s just that if you miss the January 2022 deadline, and you still want to invest in Portugal, you may end up buying a nice little investment apartment in the equivalent of Jan Kempdorp, Ermelo, Modimolle or Wolmaransstad. Nice enough places in their own right, but probably not at the top of any Airbnb searches. So move fast if you want citizenship and a place you will love to visit – or even live.