The Portuguese government is preparing to make the Portugal Golden Visa program, one of Europe’s most sought-after residence-by-investment schemes, even more attractive to investors. Following a 72% increase in approvals last year, the government announced it is considering several potential tax incentives to further enhance the program’s appeal. In an interview with Bloomberg, Minister of the Presidency António Leitão Amaro stated that his government is looking into making the Golden Visa program more enticing for foreigners. Amaro emphasized that the goal is to strengthen Portugal’s image as an “investment destination,” boost foreign investment, and attract global talent to the Portuguese economy.
What Does This Shift in the Portugal Golden Visa Program Indicate?
António Leitão Amaro, leader of the center-right government, reiterated that they have no plans to terminate or “blacklist” the Golden Visa program, especially after coming to power for the second time in early elections last month.
The Portuguese government’s intention to introduce additional tax incentives for the Golden Visa program signals a period of even greater appeal for investors. The proposed changes include tax incentives such as a 20% flat tax rate for local incomes and a ten-year exemption for most foreign incomes.
In our sector insight article on this development, we delve into the Portuguese government’s initiative to introduce additional tax incentives for the Golden Visa program, examining it from three key perspectives:
- Integration with the existing NHR (Non-Habitual Resident) regime
- The impact of Spain’s closure of its real estate route on investor behavior
- AIMA’s plan to clear its backlog of approximately 45,000 applications
Integration of Non-Habitual Resident (NHR) and New Tax Incentives
Portugal’s Non-Habitual Resident (NHR) regime offers tax advantages for specific professional groups, such as freelancers, executives, consultants, and artists, for a period of ten years. Applicants who meet the requirements under NHR pay a 20% flat tax on their professional income while largely benefiting from foreign income exemptions. With the proposed additional incentives, this regime would apply a permanent 20% flat tax for local incomes, and most foreign incomes like interest, dividends, and rent would be fully exempt for ten years. For example, a financial consultant earning €200,000 annually would maintain the 20% flat tax advantage under NHR; additionally, their net returns would increase further with a €4,000 tax saving from €20,000 in annual interest, dividend, or rental income.
Investor Behavior After Spain’s Program Closure and Portugal’s Advantages
Less than two months after Spain abolished its Golden Visa program due to concerns about its impact on the housing market, Portugal is now evaluating whether to make its Golden Visa program more attractive and establish a special tax regime for foreign residents. Portugal’s approach differs from that of Spain, which canceled its Golden Visa program in April citing rising housing prices, and other European countries like Malta, Ireland, the Netherlands, and Greece, which have terminated or tightened their similar programs in recent years.
Portugal Golden Visa Gains Appeal After Spain’s Exit
Spain canceled its Golden Visa program in April following public protests against rising housing prices and EU concerns about program misuse. Instead, Spain plans to accept 1 million foreign workers who will legally settle in the country, but this will be done through a general immigration program and by legalizing irregular migrants, rather than through the Golden Visa. To alleviate severe housing shortages, Spain is also largely restricting Airbnb use for short-term rentals and imposing a 100% tax on housing purchases by foreigners. These measures aim to reduce tensions between locals and tourists, with new protests planned as the summer season approaches.
Portugal's Advantages
- Change in Spain: On April 3, 2025, Spain removed the real estate investment option from its Golden Visa program.
- Demand Shift: Following this decision, uncertain investors turned to Portugal; approvals in Portugal increased by 72% in 2024, reaching 4,987.
- Regional Preferences: An additional 5–8% price increase was observed in popular centers, particularly Lisbon, Porto, and Algarve.
- Motivation Change: Criteria such as “fast approval,” “10-year tax exemption,” and “minimal physical presence requirement” replaced the uncertainty surrounding Spain.
Is This Also an Operation to Clear the Application Backlog?
What Does Amaro's Approach Mean?
This approach directly contradicts the stance of the previous socialist government, which temporarily excluded real estate investment from the program in 2023 to curb housing speculation, and had even threatened to abolish the program entirely. Amaro stated, “There are no plans to end it. It’s not on the table,” and further committed to clearing the backlog of approximately 45,000 Golden Visa applications currently awaiting review at AIMA. “We expect this process to be largely completed by the end of the year,” he added. AIMA currently has about 45,000 pending applications, with an average waiting time of around 9 months.
AIMA’s April Report Targets Backlog Clearance
The Portuguese Agency for Integration, Migration and Asylum (AIMA) announced in April that it was preparing to accelerate the review process to quickly process and clear its backlog of 450,000 immigration files. Minister of the Presidency António Leitão Amaro explained what would happen within this review process, based on data from AIMA’s interim report on the foreign population in Portugal. Minister Amaro recalled that in 2017, the number of immigrants in Portugal was just over 400,000, and since then, the number has quadrupled, reaching 1.1 million people by 2024. Amaro emphasized that over the past 7 years, the proportion of foreigners residing in Portugal has increased from 4% to 15% of the total population.
According to AIMA’s data, there was a 72% increase in approvals in the last year, with Americans topping the list. The government approved a record 4,987 more applications compared to the previous year. This increase is partly due to the rarity and high demand for residence-by-investment programs in EU countries.
Therefore, both AIMA’s interim report data and Amaro’s statements since April indicate that, unlike other EU countries, there are no plans to end the Golden Visa program in Portugal, further proving that Portugal is becoming an increasingly strong attraction for foreign residents and investors.
Portugal has always been a favorite among immigrants due to its livable and vibrant cities, favorable climate, and the increasingly strict restrictions imposed by the EU on residence by investment programs. If the Portuguese government makes the program more attractive, it is clear that demand will remain higher than ever.
