Portugal Golden Visa Changes Announced

On 22nd December 2020, Portugal’s Council of Ministers approved an amendment in a decree-law which will change the parameters of where investors can purchase property to qualify for the Golden Visa (ARI) residency programme. The official legislation is yet to be published, but we expect this will be released in the coming months.

The objective of the changes is to increase foreign investment across the interior of Portugal, specifically in low-density regions. Up until now, the majority of Golden Visa investment has been focussed within the main metropolitan hotspots, namely Lisbon and Porto and coastal regions such as the Algarve. From July 2021, investment in coastal locations including Lisbon and Porto will no longer qualify. The Government also stated there will be a transition period which will run to 2022, which we expect will be to allow investors to complete their applications.

This presents a six month window of opportunity to Golden Visa investors who wish to invest in the country’s prime locations before the new changes come into effect. An influx of last-minute investors purchasing in Lisbon and Porto in a bid to meet July’s deadline is expected over the coming months. La Vida also expects the availability of €350k refurbishment projects in Lisbon and Porto to start to decline soon as new projects are unlikely to be started. Demand will rise and supply will fall so we encourage any prospective investors to act quickly at the start of 2021 for the best available deals.

La Vida offers a wide portfolio of property investment options across several regions of Portugal. For a personalised consultation, please do not hesitate to contact us.

**UPDATE** The legislation changes have been delayed since publication of this news post and are now due to take effect as of January 2022.