Golden visa demand falls over pandemic
Many overseas investors who had been considering moving to Portugal through the Golden Visa scheme have put their plans on ice because of the Covid-19 pandemic.
And since most sectors of Portugal’s economy have been affected by the pandemic, Portugal’s property market has been no exception.
Nevertheless, investment rose 2.9% in the first half of 2020 to €383 million. In the first six months of the year, ARI investment stood at €383.0037,19.56, up 2.9% on the first half of 2019 when it was €372,243.909.50. Between January and June 700 Golden Visas were issued.
In June, like-for-like investment increased 21.9% to €89,100.660,55. May investment was €146,168.473,40 when investment fell 39%.
In June, 171 Golden Visas were issued by the Portuguese government, of which 162 were through the purchase of property (61 from urban rehabilitation) and nine through capital transfer.
The purchase of property in June through the scheme was worth €83.2 million (urban rehabilitation €22.2 million) and capital transfers of €5.8 million.
But while interest in buying property in Portugal has not fallen, the quarantine period, lack of flights and inability to complete applications and legal procedures in Portugal has forced prospective investors to postpone their plans in favour of better times.
Portugal’s ARI Programme is continuing to see interest from investors from the US, Brazil and China, while those considering buying a place in the sun from Europe include the British, French and those from Nordic countries.
Portugal’s Authority for Residency through Investment (ARI) programme started on 8 October 2012, allowing citizens from third-party countries outside of the EU, to obtain temporary right to residency in Portugal by making an investment, the most preferred method being the purchase of a property for €500,000 or more.
And between 2012-2020, according the Portuguese borders agency SEF, 17 authorisations for residency were issued in return for investment in job creation schemes. To date 170 jobs have been created through the Golden Visa scheme.