Democratic Party Back in Power – What Does This Mean for Portugal’s Golden Visa?

• Posted on Mar 15, 2024
• In Industry News, Portugal

Portugal recently witnessed a significant political shift as snap parliamentary elections on March 10 brought the Democratic Alliance to power, ending the longstanding rule of the Socialist Party.

While the Democratic Alliance secured a narrow victory with 29.5% of the votes, it fell short of an absolute majority, necessitating coalition-building efforts. Led therefore by the Democratic Party, the new center-right coalition is committed to fostering a welcoming environment for foreign direct investment, a stance reflected in its electoral program. This stands in contrast to the policies of the previous administration – namely the last mandate of the Socialist Party to restrict certain investment categories of the Golden Visa – signaling a potential shift towards more liberal immigration policies.

Despite these changes in governance, any immediate disruptions or amendments to the Golden Visa program are not anticipated. This stability provides reassurance to investors and underscores Portugal’s commitment to maintaining an attractive investment climate. As the Democratic Party assumes power, all eyes now will be on how they navigate coalition dynamics and implement their pro-business agenda in the coming months.

Established in 2012 under the Democratic Party’s leadership and pioneering the concept of Golden Visas in Europe, Portugal’s Golden Visa has been instrumental in attracting FDI to the country. According to the most recent figures, more than 33,000 residence permits have been issued in the period 2012-2023, garnering over €7 billion for Portugal’s economy.

Under the latest iteration of the program, investors can qualify for the Golden Visa by investing a minimum of €500,000 in government-approved investment funds, unlocking the right to live and work in Portugal, accessing the entire Schengen Area visa-free, as well as the possibility to apply for Portuguese citizenship after 5 years of temporary residency.