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Revenues from Golden Visa Program Slip in December

14 January 2018

Despite the recent decline, the incentive has been proven a success, raising €3.4 billion since 2012.

2017 started well, with monthly residential real estate investments, coming from the golden visa regime, ranging from €71 million to €172 million, but beginning in May, the total dropped to under €50 million. Two months since then saw investments of just over €50 million, and October saw a brief recovery, with revenues increasing to €93 million. But receipts in November and December fell once again, reaching a low for the last two years: €29 million. One would have to go back to the months between May and September of 2015 to find lower numbers. But there was a reason for the decreases: a corruption inquiry had just been installed, focused on the Foreigners and Borders Service (SEF) and the golden visa program itself. Now, however, Manuel Reis Campos, president of the Portuguese Confederation of Construction and Real Estate (CPCI), says that there is no real reason for the declines.

“Golden visas are decreasing. The people in charge of the program are detached from the process, and applications are being blocked. We are giving our neighbouring countries the opportunity to take advantage of the situation, considering that there are still people interested in the program. But investors feel that that are too many delays, and they need to invest quickly or move their focus,” Mr Campos told Expresso.

The total real estate investments raised through the golden visa program fell from €787 million in 2016 to €771 million in 2017. Of these, just over €743 million corresponds to the purchase of properties valued at or above €500,000 and close to €27 million corresponds to the purchase of real estate for urban rehabilitation in for a total amount equal to or higher than €350,000, according to data from the Foreigners and Borders Service (SEF) released this week and reported by Lusa.

Real estate investors are still the principal interested parties in golden visas. The other criterion for the granting of residence permits, the transfer of capital, brought in just over €73 million in 2017.

According to SEF’s data, there was a 3.4% decline in 2017, to €844 million, equal to 1,351 visas granted. December also saw one of the lowest values ever (except for those months in 2015). In the last month of the year, the total investments raised through golden visas stood at €30.4 million, 44% less than in November, and a 65% decrease compared to the same month of 2016.

In any case, the program has been a success. Since its inception at the end of 2012, it has raised €3.4 billion, granting 5,553 visas.

Of these, 3,588 were for Chinese investors, followed by Brazil with 473, South Africa with 218, Russia with 195 and Lebanon with 108 visas.

Original Story: Expresso – Ana Baptista

Translation: Richard Turner