On 22 December 2020, the Council of Ministers approved the Decree-Law amending the legal framework of Residence Permits for investment (ARI - Golden Visa), which since 2012 has driven the real estate sector in Portugal.
This Decree-Law aims to promote the investment of foreigners in low-density regions, namely in urban requalification, cultural heritage, activities of high environmental or social value, productive investment, and job creation. In this sense, the new rules have limited the Golden Visa concession in the metropolitan areas of Lisbon and Oporto, as well as on the coast (especially in the Algarve region).
However, this Decree-Law will only come into force as from 1st July 2021, thus creating a transitional period for the adaptation of the real estate sector and future investors.
In addition, the renewal of procedures approved under the current regime, as well as subsequent
applications for family reunification, will not be affected.
I. Application of the transitional period
The intention is that the investment restrictions will start in July 2021, however, the measures enshrined in the Decree Law will not be implemented immediately.
According to the statement made by the Minister of State and the Presidency, the plan is for the restrictions measure to be introduced gradually until the end of 2022.
In fact, during the transitional period, investors interested in investing in the metropolitan areas of Lisbon, Oporto and the coast will be able to continue to benefit from the current Golden Visa regime, but during the transitional period, the amounts required from investors in those areas will be progressively higher1, thus gradually reducing the possibility of investing in metropolitan areas.
We would like to point out that the granting of Authorisation for Investment and Residence to foreign citizens is possible through various types of investment, such as the transfer of capital, investment in venture capital funds, job creation or real estate investment of more than 500,000 euros, which should be maintained, but which will be restricted to the intermunicipal communities of the interior and the Autonomous Regions of Madeira and the Azores.
António Vicente Marques – Sociedade de Advogados, SP, RL.
Lisbon, 12th January of 2021
1 These figures were not specified in the Council of Ministers' Communication of 22 December 2020.