*** Lucília Tiago e Denise Fernandes***

Lisbon, Feb. 5, 2020 (Lusa) - The Portuguese Parliament approved on Wednesday a limitation on issuing ‘Golden visas’ to real estate investments except in inland municipalities or autonomous regions of the Azores and Madeira.

At issue is a proposal for legislative authorisation on the Residence Authorisation Scheme for Investment (usually referred to as Golden visas) presented by the Socialist Party (PS), which gathered the votes in favour of the PS and Democratic Socialist Party (PSD) and the votes against by the Left Bloc (BE) and People–Animals–Nature (PAN), which saw their respective proposals on the end of the ‘Golden visas’ fail.

The measure aims at favouring the promotion of investment in low-density regions, as well as investment in urban regeneration, cultural heritage, activities of high environmental or social value, productive investment and job creation, proposing to restrict to the territory of the Intermunicipal Communities (CIM) of the Interior and the Autonomous Regions of the Azores and Madeira investments in real estate to obtain a residence permit and to increase the minimum value of investments and the number of jobs to be created.

At the same time, the aim is to relieve the pressure of the real estate market in areas such as Lisbon and Porto, ending the possibility of obtaining a Golden visa by investing in real estate in these areas and along the coastline.

However, the proposal does not prejudice the possibility of renewing residence permits granted under the current regime, nor the possibility of granting or renewing residence permits for family reunification provided for by law, when the residence permit for investment has been granted under the current regime.

"With this measure, we seek to remove the pressure [on the real estate market] existing in the metropolitan areas [of Lisbon and Porto]. This measure of ours will contribute to greater territorial cohesion," argued Ana Catarina Mendes, leader of the Socialists' group, when the initiative was presented in more detail.

The end of ‘Golden visas’ for foreigners from outside the European Union who invest €500,000 in Portugal, namely in the real estate market, has been insistently demanded by associations linked to the fight against money laundering and by parties, especially the BE.

The measure now approved allows ‘Golden visas’ to continue to be granted to investors who create jobs, for example by launching companies, in the metropolitan areas of Lisbon and Porto, or coastal cities of the country.

The investment in Portugal raised by the 'golden' residence visa scheme for foreigners fell by 11.4% in 2019, compared to the previous year, to €742 million, according to data from the Foreigners and Border Service (SEF).

By nationalities, China leads the allocation of visas (4,467), followed by Brazil (863), Turkey (380), South Africa (320) and Russia (296).

The Portuguese Minister of the Interior had already said last month that the government intended to change the ‘golden visa’ regime regarding property investment.

Eduardo Cabrita stated that the ‘golden visas’ had "the relevant effect of attracting investment and urban requalification", besides "some dimension of job creation".

'Golden visas' have raised criticisms in the European Parliament, the European Commission and from the European Economic and Social Committee, over the risks of corruption, money laundering and even security they pose.

LT/DF/IMYN // ADB.

Lusa