President of Portugal rejects government's "More Housing" bill

The President of the Portuguese Republic, Marcelo Rebelo de Sousa, has recently rejected the government's "Mais Habitação" ("More Housing") bill. This decision is based on political considerations rather than technical or constitutional concerns. As a result, the bill will need to undergo amendments in Parliament before it can be passed, which will likely take at least another month. Consequently, Portugal’s Golden Visa programme will remain unchanged until then.

In the President's letter to Parliament, he outlined eight specific risks and criticisms of the bill. Interestingly, none of these points mentioned the Golden Visa programme. The President had the option to refer the bill to the Constitutional Court for review, however, he concluded that no part of the bill raised constitutional concerns.

When Parliament reconvenes in mid-September, they will vote again on the bill, most likely confirming it without significant changes. Subsequently, the President will be obligated to approve it. Upon receiving final approval from Parliament, the new rules for the Golden Visa programme will come into effect.

The remaining options for eligible Golden Visa investments are as follows:

• Capital transfers of at least €500,000.00 for the acquisition of non-real estate collective investment assets, incorporated under Portuguese law, with a minimum maturity of five years and at least 60% of the investment dedicated to commercial companies domiciled in Portugal.
• Creation of 10 or more jobs*.
• Capital transfer of €500,000.00 or more for the establishment of a Portuguese company combined with the creation of five permanent jobs, or investment in an existing company combined with the creation of five permanent jobs or maintenance of ten jobs, for a minimum duration of three years.
• Transfer of capital equal to or greater than €500,000.00 for investment in research activities carried out by public or private scientific research institutions engaged in the national scientific or technological system*.
• Capital transfer equal to or greater than €250,000.00 for investment in artistic production or support for the arts, for the restoration or renovation of national heritage, through local and central authorities, public institutions, or eligible private organisations*.

*The minimum investment amount is reduced by 20% for investments in low-density areas.

Under no circumstances, investments can be made directly or indirectly in real estate.

Applicants seeking a Portugal's Golden Visa under the old rules, such as through real estate investment, must submit their applications before the new law takes effect, which is expected to occur in September.

Please do not hesitate to reach out to us should further clarification be required.