Portugal’s End of Golden Visa Could Lead to Losing €600 Million of Investments

According to the Portuguese Association of Residental Tourism and Resorts, the end of Portugal's Golden Visas could result in the suspension of investments of more than EUR600 million.

SchengenVisaInfo.com reports that the exclusion of Residence Permit for Investment (ARI), also known by the Golden Visa Scheme for tourists units, was a temporary and erroneous move that occurred one year after its last review.

APR claims that the government's Mais Habitacao plan will result in "the suspension of investments of over 600 million euros and, therefore, the creation of over 1,000 jobs, which some of the associates of the APR had forecast for the next two years".

The Portuguese Association of Residental Tourism and Resorts believes that this measure could result in the loss of any new international investor's contribution to the Portuguese economy. This is almost six times the initial investment.

According to the association's data, 534 million euros was invested last year, which is almost three times more than the previous five-years. This amount is equivalent to 1.3 percent of the country's GDP (Gross Domestic Produce) and 18% of the Recovery Resiliency Plan (PRR).

The APR stated that it understood that the extinction the ARI would have significant economic and credibility consequences for the country. This is disconnected from the reality in the state and its regions and extemporaneous. It also highlighted that the worst case scenario would be to end abruptly and completely with the ARI.

APR stated that "we would potentially be hitting in a potentially irreparable manner, essential sectors Portugal needs foreign private investment - health, tourism, logistics among others - in medium term, as the State doesn't have the capacity to reply, not even with PRR".

APR stated that APR believes that the vast majority of investments made since the regime's entry into force are still in the development phase or construction phase.

Portugal's authorities decided last month to end the Golden Visa Program. This was the second European country to do so after Ireland.

Despite the fact that Portugal's Golden Visa Scheme was a significant contributor to its economic sector, it was seen as an open door for many illegal acts. Authorities in EU countries continue to call on all EU member states to end their Golden Visa Programs as soon as they can.

Source: schengenvisainfo.com