How Does the New Housing Bill Affect the Portugal Golden Visa?

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As expected on July 19th 2023, the Portuguese Parliament voted to pass the Mais Habitação Bill (More Housing Bill). This article will show how the new More Housing Bill affects the Portugal Golden Visa. 

The Portugal Golden Visa: What Has Changed

The key features of the More Housing Bill are that:

1. The Golden Visa programme will continue with five (5) different investment options. The real estate investment and capital bank transfer will no longer be an option;
2. There is no retroactive effect and the right of renewal, family reunification, and permanent residency applications are safeguarded;
3. All future renewals will be approved under the current regime requiring only seven days per year residence period, which is consistent with the current requirements;

The amendments will come into force on the day following their publication in the official journal with no grace period.

The remaining five investment options are:

1. Pledge €500,000 or more to venture capital or investment funds 
2. Create at least 10 jobs for Portuguese citizens
3. Make a scientific contribution of €500,000 or more
4. Donate at least €250,000 to artistic production or cultural heritage
5. Invest in a business and create or maintain five jobs for locals

How Do the Changes Impact Portugal Golden Visa Applications?

There will be no immediate impact. Portuguese authorities will continue to process existing applications. Until this new law comes into effect, you can still take advantage of the real-estate option.

What Happens Next?

The President of the Republic receives the approved Housing Bill. There are three possible outcomes from him doing so. They are as follows:

1. Ratification: the official journal publishes the proposal and the next day the bill becomes law
2. Further Amendments: the President does not accept the proposal as-is and requests further amendment from the Parliament
3. Second opinion: the President accepts the document but requests the evaluation of the Consitution Court 

When Will Changes Take Place?

The President has 20 days to make a decision. However, he could make his decision before this time. 

If he ratifies the bill, it will not come into effect until the middle or end of September. This reflects the complexity of the bill and the fact summer holidays have started. 

If he rejects or requests a second opinion, the new law will come in a lot later. 

What Happens if I Miss This Deadline?

The Golden Visa is not closing. It is being amended to remove the option to investment in real estate and the capital transfer option There is still alternative investment options noted above. However, the investment level will be EUR 500,000, as opposed to the current real estate minimum of EUR 280,000. Your Client Advisor can explore this at a later date, as required.

What Should I Do Now?

If you have already started the process and submitted your application:  

There is nothing you need to do as your application will be locked in and you will be considered under the laws in place at the time of your submission.

If you have started your application but not yet submitted:

We have a very small window to submit your application before we have a decision from the President and to ensure your application is considered under the current legislation. Please speak to your Latitude Client Advisor ASAP to review your file and see what you need to be able to submit.

If you have not yet started the process

It would not be realistic to advise that you could prepare a file for submission in 10 days, although it is possible and you would need to have access to all of the necessary documents.

If not, we should wait for 10-20 days to see what the decision from the President will be. If he does not ratify the bill and it either goes back to Parliament or the Constitutional Court, there will be a longer period where we would have enough time to prepare and submit an application.