Portugal’s Golden Visa program, launched in 2012, has turned from a promising opportunity into a source of frustration for investors. The program offered non-EU nationals a path to residency and citizenship through substantial investments, raising over €7 billion since its inception.
Investors could choose from various options, including real estate purchases, capital transfers, job creation, or investments in research and culture. Minimum investments ranged from €250,000 to €1.5 million, depending on the chosen path.
Initially promising a 90-day processing time, the program now faces delays of up to two years. The Agency for Integration, Migration and Asylum (AIMA) struggles with a backlog of over 400,000 visa applications, causing significant distress for applicants.
Golden Visa Woes: Portugal Risks Losing Foreign Investors to Competitors. (Photo Internet reproduction)
External factors have worsened the situation. The COVID-19 pandemic and the Ukraine war led to a surge in immigration, doubling Portugal’s foreign resident population since 2018 to one million people.
Many investors have committed large sums to Portuguese real estate, only to find themselves in limbo years later. Others face indefinite waits for basic procedural steps, leaving their applications stalled and their futures uncertain.
Frustrated applicants have turned to legal action, filing lawsuits to compel AIMA to process applications within the promised timeframe. Lawyers report a significant portion of their Golden Visa clients pursuing this route.
Golden Visa Woes: Portugal Risks Losing Foreign Investors to Competitors
The Portuguese government has responded by creating a task force and approving legislative changes. These include allowing applicants to start their five-year residency period from the application date rather than the approval date.
However, these measures have yet to significantly impact the backlog. Portugal’s reputation as an attractive investment destination has suffered, with many applicants expressing regret and citing easier processes in countries like Greece, Spain, or Italy.
The future of Portugal’s Golden Visa program remains uncertain. The government must balance attractive investment opportunities with efficient application processing. Potential investors now weigh the program’s benefits against the risk of lengthy delays and legal battles.
As Portugal works to resolve these issues, the world watches to see if the Golden Visa dream can be salvaged. The crisis serves as a cautionary tale for countries with similar programs, highlighting the importance of efficient bureaucratic processes in supporting ambitious investment schemes.
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