Portugal's President has approved the "More Housing" bill, initiating reforms in the Golden Visa program. These revised regulations will soon be examined in Parliament and are anticipated to be officially published within the next 4-8 days, marking a significant development.

President's Shift From Veto to Approval

The President's choice to enact the legislation represents a shift in his stance, as he initially used his veto power to block its progress. Nevertheless, after the bill successfully passed a second round of voting in Parliament last week, the President was compelled to grant his approval.

The president shift from veto to approval of the gender-change law can be explained by a number of factors:

• Public pressure: After the President's initial veto, there was a significant backlash from the Portuguese public, with many people expressing support for the law. This pressure may have influenced the President to reconsider his position.

• Parliamentary support: The law passed Parliament with a large majority, demonstrating strong support from both the left and the right. This may have made it difficult for the President to continue to block the law without risking a loss of legitimacy.

• Political considerations: The President is facing re-election in 2026. Approving the gender-change law may be seen as a way to appeal to younger voters and other progressive-minded segments of the electorate.

Additional points:

• The approval of the gender-change law is a victory for LGBTQ+ rights in Portugal. It will make it easier for transgender people to change their legal gender and name, which can have a positive impact on their lives in many areas, such as employment, healthcare, and education.

• The President's decision is also a positive sign for democracy in Portugal. It shows that the separation of powers is working and that the President is willing to respect the will of Parliament.

Revised Golden Visa Regulations

The government recently revised the Golden Visa regulations in October 2023, removing real estate investment as a viable option. This is expected to lead to a significant shift towards the fund investment category as the preferred choice for most investors.

Reasons for the shift

There are a number of reasons why investors are likely to prefer fund investment over other options under the revised Golden Visa regulations:

• Lower investment threshold: The minimum investment amount for fund investment is lower than the minimum investment amount for some other options, such as job creation and scientific research.

• Greater flexibility: Fund investment offers investors greater flexibility in terms of how they invest their money. Investors can choose from a variety of funds with different investment strategies and risk profiles.

• Potential for higher returns: Fund investment has the potential to generate higher returns than other Golden Visa investment options, such as government bonds.

New investment alternatives

The following are the new investment alternatives as of October 2023 for individuals seeking a Golden Visa under the revised regulations:

• Job creation: Requires the creation of a minimum of ten jobs.

• Scientific research: Involves transferring capital equal to or exceeding EUR 500,000, designated for research activities conducted by public or private scientific research institutions integrated into the national scientific and technological system.

• Cultural heritage support: Requires transferring capital specifically for investment or support of artistic production, preservation, or maintenance of national cultural heritage through various public and private entities engaged in these endeavours.

• Collective investment: Involves transferring capital for the acquisition of shares in specific collective investment organisations incorporated under Portuguese law. These funds must have a maturity period of at least five years and allocate at least 60% of their investments to commercial companies based in the national territory.

• Commercial ventures: In this option, capital needed or more is transferred for the establishment of a commercial company with a registered office in the national territory, combined with the creation of five permanent jobs.

• Reinforcement of share capital: Reinforcing the share capital of an existing company in the national territory is also a qualifying option, provided that it results in the creation or maintenance of at least ten jobs, including a minimum of five permanent positions, over a minimum period of three years.

Support for Low-Density Regions

Support for low-density regions is vital for economic development and quality of life. This article explores the significance of such initiatives and their impact on rural communities.

• The government's decision to lower the minimum investment thresholds for Golden Visa investments in low-density regions is a positive development for both investors and the Portuguese economy.

• For investors, this means that they can now obtain a Golden Visa by investing a lower amount of money and have more flexibility in terms of where they can invest their money.

• For the Portuguese economy, the government's decision is likely to boost investment and job creation in low-density regions.

• Increased investment in low-density regions can help to create new jobs and boost economic growth in these areas.

• The government's decision is also aligned with its broader goal of reducing regional disparities in Portugal.

Alignment with Government Goals

• The government's decision to support low-density regions is aligned with its broader goal of reducing regional disparities in Portugal.

• The government has identified low-density regions as a priority area for development, and it is implementing a number of policies to promote investment and job creation in these areas.

Real Estate Excluded: A Key Change in Golden Visa Regulations

The government's decision to exclude real estate from the Golden Visa program is a significant change that will have a major impact on the program. Real estate investments have been the most popular Golden Visa investment option, accounting for over 90% of all investments in recent years.

The exclusion of real estate from the Golden Visa program is likely to lead to a number of changes:

• Increased investment in other sectors: Investors are likely to shift their investment focus to other sectors, such as venture capital, funds, and job creation. This could lead to increased investment in Portugal's economy and the creation of new jobs.

• More diversified investment options: The exclusion of real estate from the Golden Visa program will make the program more diversified. This means that investors will have more options to choose from and they will be less exposed to the risks associated with the real estate market.

• Increased competition among investment providers: The exclusion of real estate from the Golden Visa program is likely to increase competition among investment providers. This could lead to lower fees and more innovative investment products.

Overall, the exclusion of real estate from the Golden Visa program is a positive change that is likely to make the program more attractive to investors and more beneficial to the Portuguese economy.

FAQS

What are the key changes in Portugal's new Golden Visa rules?

The main change is the exclusion of real estate investments as an eligible pathway for Golden Visa applicants. Instead, new options such as job creation, scientific research, cultural heritage support, collective investment, and commercial ventures have been introduced.

Can I still invest in real estate through the Golden Visa program?

No, the new regulations explicitly prohibit any form of real estate investment as a route to obtaining a Golden Visa.

How do low-density territories affect the minimum investment requirements?

In low-density territories, the minimum investment requirements for certain options (1, 2, and 3) can be reduced by 20%. These regions are defined as areas with fewer than 100 inhabitants per square kilometre or a GDP per capita below 75% of the national average.

Are there any investment options that promote job creation in Portugal?

Yes, one of the new investment options is focused on job creation, requiring the creation of a minimum of ten jobs in the country.

Where can I find more information on these new Golden Visa rules?

For additional details and personalised guidance on the evolving Portugal Golden Visa program and its investment options, it is recommended to stay updated with the latest information and consult with qualified professionals well-versed in the subject.