Golden Visa programs have proven to be valuable tools for numerous economies around the world, with a growing number of countries making use of the schemes to kickstart growth and prosperity. These schemes, championed by countries like Portugal, Greece, and Spain, grant citizenship to foreign investors and high-net-worth individuals in exchange for significant financial investments in the host country. The ‘golden’ refers to the array of benefits that come from acquiring citizenship in a foreign country, whether that’s residency rights, visa-free travel, or access to social benefits.
However, earlier this year, Portugal looked poised to sunset their scheme. Regrettably, the country is in the middle of a housing crisis, where rent and house prices have entered the stratosphere, driven by a competitive market and hefty domestic inflation. Many have argued that the country’s Golden Visa scheme has been a primary cause of this crisis, where foreign nationals who have invested heavily in the property market have priced out locals in popular destinations. While the scheme may have played a role, I don’t think that we can point to just one policy for the overheated property market.
The demand from investors is understandable. Who wouldn’t want to live in Portugal? Whilst the climate, cuisine, and people are often the first aspects that come to mind, the country also possesses world-leading education and healthcare systems. In 2021, the World Index of Healthcare Innovation ranked the Serviço Nacional de Saúde third in the world for patient care and medical infrastructure. Of course, an additional key benefit of a Portuguese Golden Visa is immediate access to the Schengen Area, the EU’s borderless zone of travel. After five years of owning a Visa, investors can also obtain a Portuguese passport, granting them the right to live and work anywhere in the European Union. I was born in Bulgaria in 1976, living in Morocco and France, before my parents then moved to Canada in 1992, so I’m acutely aware of the life-changing benefits that a more powerful passport provides.
In the face of mounting public pressure, there were fears that Portugal would abandon this scheme entirely, seeking a simple solution to a complex problem. I was very pleased, then, to see a welcomed U-turn from the government, with President Marcelo Rebelo de Sousa approving the ‘More Housing’ Bill. This bill will mean that Portugal’s Golden Visa program can continue shining. The changes will see the scheme enter a new era, removing inflationary real estate provisions in favor of directing capital towards new strategic areas of growth, including science, culture, and local business. This shift in focus has broken new ground, set a pioneering precedent, and underlined these schemes’ flexibility, utility, and transformative potential. It’s an approach that I think many other investor immigration programs will follow over the coming years.
The Portuguese Government’s decision should be celebrated. President de Sousa has recognized Portugal has different needs to other European nations. There are great regional, cultural, and societal differences between EU member states, so why should a one-size-fits-all approach be applied to investor immigration programs? The decision by President De Sousa to evolve their program rather than scrap it is proof of the huge impact that citizenship by investment programs can have when uniquely tailored to the needs of each specific country.
Portugal has a rich history of investor immigration and has long reaped the rewards. The Portuguese program was the first Golden Visa program to be introduced to Europe and it is showing no signs of slowing down. Between January and August, the scheme brought €493 million to Portugal. Over the next two years, it is predicted that more than 1,000 jobs will be created as a direct result of this program. Golden Visa schemes support projects that are vital for national economies – they build bridges for our communities, hospitals for our parents, and schools for our children.
So, what are the new rules? Most notably, citizenship can be acquired through investing in the arts or through the reconstruction, or refurbishment, of national heritage projects. Directing capital towards scientific research is another avenue towards a Portuguese Golden Visa. The benefits of these policies can’t be overstated. Societies that prioritize arts and culture are happier, healthier, and more fulfilled. Arts and culture change lives, but also lead to business opportunities, generating money for national and local economies; all in the pursuit of creativity. The impact of an effective and efficient scientific research sector is obvious. As global innovators, we’ve solved myriad challenges and eradicated devastating diseases, but there is still work to be done. The Covid-19 pandemic brought into sharp focus how vulnerable we really are, and how it feels to lose loved ones, freedom, and mobility. Schemes like this effectively channel capital to scientific research to ensure that we never suffer the same consequences again.
Whilst some may point to the alterations to the scheme as a wavering of confidence in the programs, I see it, instead, as a reassertion of their value. This decision is an important show of faith for Golden Visas, recognizing their growing utility in a world that is becoming more and more complex, allowing them to evolve and direct capital to where it’s most needed.
Portugal has taken a seismic step forward and should serve as an inspiration to the rest of the world, evolving its program to solve problems and suit its citizens, rather than abruptly closing the door. The stipulations may have changed but the benefits of a Portuguese Visa will forever stand the test of time.
