Ending Golden Visa Program - Implications for Applicants and Homeowners

The End of The Golden Visa Program: Specific Implications

In his speech, the Prime Minister of Portugal mentioned that of the approximately 11,000 visas that have been granted since the beginning of the Golden Visa Program, a rough number of 9,000 visas came through real estate investments. Only a fraction, which goes to almost zero, occurred in job creation and other activities. Therefore, it is believed that a large proportion of investors who came through the Golden Visa Program contributed significantly to speculation in the real estate market.

The proposed law, which still needs to be approved by the Assembly of the Republic, states that no new Golden Visas will be granted in the future. The previously granted Golden Visas require renewal, which is subject to certain conditions. According to the Prime Minister's announcements, one of the new requirements for the renewal of an existing Golden Visa obtained through a real estate investment is that the property must be either used as a permanent residence by the owner or their descendants or be permanently placed on the rental market.

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What are the implications of this legislative change for current applicants or people interested in applying for the Golden Visa Program in Portugal?

As mentioned, the bill must first be approved or amended by the Assembly of the Republic for the changes to take effect. Abrupt changes in the legal framework are not common in Portugal. This means that until the changes take effect, which will likely take over a month, applicants who are already far advanced in the process should strive to complete it in the fastest way possible, as there is a high chance that they will still obtain a Golden Visa before the change becomes active.

Interested parties and applicants in the early stages of the process should delay negotiations, if possible, and carefully monitor the situation. It may also make sense to prepare and have all the necessary documents ready in the background, so that they can act quickly and agilely in case of a change.

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What do these changes mean for me as a homeowner who has acquired a property through the Golden Visa Program?

As it stands, renewing an already issued Golden Visa will require that the property is either used as a permanent residence by the owner or their descendants. If this is not the case, the property must be permanently placed on the rental market so that the Golden Visa can be kept up.

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What options do I have as a homeowner who has acquired a property through the Golden Visa program but spends most of the year outside of Portugal and primarily sees the property as an investment?

If neither you or your children live in the property, you have the option to rent it out and thus permanently place it on the rental market. However, this can be challenging because it is usually necessary to be on-site for the maintenance and rental of the property.

One way to circumvent this is to hire a property management company that takes care of not only maintenance but also finding tenants. However, as it is usual in the field of normal rentals, there is the risk of vacancies. This means that it will be difficult to avoid having a few days to 1-2 months of vacancy between a tenant and their successor, during which the property will be empty and logically, no rental income can be earned. This is especially negative because you are likely not to be on-site and have little time to deal with this and monitor the process and things ongoing directly.

For owners who have purchased a property in Lisbon, we at bleisured can take care of all these pain points for you and offer an all-around carefree package. If you rent your property to us, you will benefit from fixed, uninterrupted rental payments over a longer time horizon and no involvement in operational work.

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How do we as bleisured differentiate from a normal property management company:

1. Prevention of tenant default: We have a long-term contract in place, and we always pay the rent in advance, ensuring that you receive a reliable and steady stream of income.
2. Optimization of rental income: We guarantee a steady payment of rent every month, whether there is a tenant living in the apartment or not. Thereby, your property is generating income at all times.
3. No short-term rent: Our guests stay between 1-12 months, providing a more sustainable and stable source of income for you.
4. Transparency, no hidden fees: You will always receive the full rent amount that we agreed upon in the beginning, with no markdowns or hidden fees.
5. High-quality furnishing & decoration set up: We will transform your apartment into a move-in work-ready space, within the shortest time possible, increasing its value and appeal to tenants.
6. Guests who respect your  property: We carefully select our guests through a well-designed selection process, ensuring that they are respectful and responsible tenants.
7. Regular cleaning and inspection: We take care of the cleaning and regular inspections, which keep the apartment in good shape, and allow us to address any issues promptly.
8. Maintenance of the apartment: If anything needs to be done inside the apartment, we will take care of it directly, and pay the bills ourselves, so you can rest assured that your property is being well-maintained.

You will find more details about the process of renting with us on our homeowners' section.

Feel free to contact us using this form if this sounds interesting to you and you would like to receive more information. We would be happy to explain to you in a first conversation what possibilities and consistent rental income are available through worry-free renting with us.

We will track all changes and progress in the legislative process about this change on the Portuguese Golden Visa program and keep the information relevant to you up to date in this blog post.